Mutual assistance has long been part of the electric power industry’s DNA.

As electric companies, our strength is collective, and our culture of continuous improvement means we are constantly looking to improve safety, reliability, and service to customers.

While our mutual assistance work is commonly associated with storm response, our companies support one another in several other areas, including physical and cybersecurity initiatives. Amid a backdrop of geopolitical uncertainty, these collaborative resilience efforts are especially important today as our industry works to strengthen and safeguard America’s critical energy infrastructure.

Twenty years ago, we broadened our mutual assistance footprint by launching the Spare Transformer Equipment Program (STEP), ensuring we could coordinate and respond quickly following a direct attack on critical American infrastructure.

The terrorist attacks on September 11, 2001, changed so much for so many. As an industry central to the safety and security of the nation, we knew we needed to be part of the solution and, as we always do, have plans in place for worst-case scenarios.

In the years that followed the attacks, I was proud to be part of an industrywide effort to safeguard our grid against bad actors through the founding of STEP. The program provides participating companies with access to a large pool of hard-to-replace assets when, for example, a terrorist attack destroys a substation with large power transformers and causes a significant transmission outage. Members—consisting of investor-owned electric companies, public power utilities, and federal power marketing administrations—maintain a supply of spare transformers and other hard-to-replace assets that fellow members can readily access—and are required to share—in the event of an attack.

Unfortunately, electric companies know too well the long lead times associated with purchasing new transformers and new grid equipment in the event that existing assets are damaged—which is magnified during an attack or crisis event when every moment without power counts. STEP mitigates these lead times and helps ensure its members can respond quickly and efficiently.

Thankfully, in its 20 years, STEP has never seen a terrorist event cause a significant transmission outage. Even so, its members collaborate regularly and have used the STEP framework to support one another in other emergency situations. The continued strength of the program, and the robust, trusted community of industry peers that it has fostered, speaks to one of our superpowers as an industry: our commitment to preparation and collaboration.

We know that our companies and our industry power our customers’ lives and the broader U.S. economy. And, we know that, time and again, bad actors are targeting the grid to inflict maximum impact on the American people.

That means we must constantly remain on the front foot. What secures the grid and keeps our customers safe today will not remain static, and it is through programs like STEP that we plan and prepare for evolving threats to our grid and our national security.

I am proud that, 20 years after its founding, STEP remains a critical tool in our industry’s emergency response toolbox—a tool that, while we hope to never need it, is sharp and ready if we do.

Mike Innocenzo is Executive Vice President and Chief Operating Officer, Exelon and Interim President and CEO, PECO

Electric companies drive economic development, grid investments, and customer benefits across the country, thanks in large part to the win-wins they create for communities through their work with hyperscalers, large manufacturers, and data center developers.

Last week, EEI President and CEO Drew Maloney moderated a discussion between EEI Vice Chairs Drew Marsh, chair and CEO of Entergy; and Chris Womack, chairman, president, and CEO of Southern Company, during a Gulf South Business Roundtable event in Washington, D.C.

The group discussed the importance of industry-government coordination, electric companies’ commitment to protecting and serving customers, and the opportunities that are being unlocked in the Gulf South by hyperscaler investments.

“We’re seeing this region lead on affordability initiatives, on smart data center development, and on community engagement, with projects that benefit everyone,” Maloney said. “We’ve seen study after study show that grid-connected data centers can drive down prices and deliver meaningful benefits to customers. Entergy and Southern Company are case studies and role models for the rest of the country for the work they are doing in the Gulf South.”

Key Takeaways:

Hyperscalers Are Paying Their Fair Share – And Then Some

Context: Fair share agreements ensure tech companies and data center developers pay for the energy infrastructure they need – projects that benefit all customers by spreading fixed costs, creating jobs, and unlocking new streams of tax revenue to support schools, roads, bridges, and fire departments.

Entergy’s Fair Share Plus pledge ensures data centers pay their own way – and ultimately drive benefits to existing customers. In Louisiana, for example, school teachers in Richland Parish went from being among the lowest paid in the state to some of the highest paid thanks to increased tax revenues from an Entergy-powered Meta data center project.

Electric Perspectives: 

• “Our Fair Share Plus pledge lines up with the Ratepayer Protection Pledge that several hyperscalers signed in Washington a few months ago. … These projects are adding to schools and paying for new fire engines, libraries, and roads that help our communities.” - Entergy’s Drew Marsh
• “These projects are incredible economic engines for many of our communities. … Because of how we structure these projects and negotiate these contracts, we’re making sure they’re not only paying their fair share: They’re paying a premium that allows us to hold rates flat, or you’re seeing rates decline.” - Southern Company’s Chris Womack

Electric Companies Put Customers First

Context: Independent studies from EPRI, Columbia University, and The Brattle Group conclude that data centers and large customers put downward pressure on rates when connected to the grid. Previous research from Charles River Associates and Lawrence Berkeley National Laboratory also found that customers outside of the PJM region have largely been shielded from cost increases related to data centers and benefit from new large loads.

Entergy’s work with data center developers, for example, is driving $7 billion in savings to the company’s 2.3 million customers in Arkansas, Louisiana, and Mississippi.

Meanwhile, Georgia Power’s data center work allowed regulators to lower customer rates by approximately $50 per year – following last year’s approval of a multi-year rate freeze thanks to Georgia Power’s work with data centers and large load customers. Similar freezes have been approved in Alabama thanks to Southern Company’s work.

Electric Perspectives:

• “If you look at the history of electricity and what our industry has done for more than 100 years, a cornerstone of our work has been a commitment to reliability, to service, and to our communities. That community focus has been tied to economic development and how we grow our communities, grow our tax base, and make communities better.” - Southern Company’s Chris Womack
• “We start by putting the customer at the center of everything we do. All of our decision making cascades from there. … Our communities, collectively, are very supportive of these opportunities because of how much these projects support our existing customers.” - Entergy’s Drew Marsh

New Infrastructure Is Efficient, Resilient, and Ready to Meet Demand

Context: Electric companies ensure the new infrastructure built to support data centers is new, modern, efficient, and beneficial to all customers.

Southern Company is developing or upgrading more than 1,300 miles of transmission and distribution lines across Georgia and Alabama. In Louisiana, Entergy estimates its work with Meta alone will lead to a 10 percent reduction in storm recovery and grid resilience costs to its customer base.

Grid-connected data centers enhance the resilience of the broader system, give tech companies the reliability their facilities need to operate, and subsidize the construction of new energy infrastructure and upgrades to existing assets.

Electric Perspectives:

• “My expectation is we will continue to have large-scale customer growth. That will be the engine that remakes the transmission and distribution grid. It will make rebuilding existing infrastructure more affordable for our customers. That’s what I’m excited about. There will be benefits for new customers coming in and all of our existing customers, as well.” - Entergy’s Drew Marsh
• “We’re going to meet this new demand, but we’re going to continue to make the right investments to make sure we strengthen the grid for our existing customers. That’s the responsibility that we have. We’re going to uphold that responsibility and execute around it.” - Southern Company’s Chris Womack

San Diego Gas & Electric (SDG&E) is deploying AI technology that will give it “near-instant insights” into potential wildfire and extreme weather risks, in partnership with Qualcomm Technologies and the University of California San Diego’s Scripps Institution of Oceanography.

The new Edge Alert Sentinel (EAS) will integrate environmental sensors, AI technologies, edge computing, and atmospheric science from wind, weather, and environmental data. One of its biggest draws is its “edge” capabilities, meaning it will be able to process data at the point of collection rather than relying on cloud computing that can introduce delays.

In Southern California’s complex weather environment, where Santa Ana winds, droughts, and terrain variability complicate traditional forecasting efforts, EAS will be able to deliver guidance in seconds rather than minutes – which can make a real difference to wildfire mitigation work.

“For nearly two decades, our region has avoided a catastrophic electrically caused wildfire because we chose to lead early and never stop looking ahead,” SDG&E President Scott Crider said in a statement. “EAS reflects that same mindset. By working with Qualcomm Technologies and UC San Diego, we’re bringing world-class technology and science together, so intelligence lives where the risk lives – on the front lines – and communities are safer because of it.”

A pilot is being set up on Mt. Palomar, about 70 miles north of San Diego. SDG&E and its partners are planning for a wider rollout in 2027.

The tool is SDG&E’s latest designed to keep customers safe from wildfires and extreme weather. Over the past decade, SDG&E has invested nearly $6 billion to prevent catastrophic wildfires.

The company’s Wildfire and Climate Resilience Center integrates cutting-edge fire science, weather forecasting, and supercomputer modeling into the team’s wildfire mitigation work, helping SDG&E respond to real-time threats while building a more resilient system to respond to longer-term threats.

In July, the U.S. Department of Energy (DOE) announced the closure of a $3.26 billion loan that will support AEP Texas in its work to lower customer costs and enhance energy grid reliability and resilience.

More than 1 million AEP Texas customers will save $685 million in electricity costs during the next 30 years as a result of the loan, which will help fund 100 AEP Texas transmission projects, including the construction of 2,800 miles of new transmission lines.

“Texas is poised for incredible growth over the next five years. AEP Texas is committed to enabling this opportunity while leveraging resources to deliver future savings for our customers,” AEP Texas President and COO Adrian Rodriguez said in a statement. “This loan supports critical updates to our transmission infrastructure to strengthen reliability, connect new load and generation resources, and manage affordability.”

The loan will also support up to 41 gigawatts of new load growth by 2030, as AEP Texas invests in the grid to meet energy demand while maintaining reliability and affordability for current customers.

“This investment will modernize Texas’ electric grid, support the energy needed for AI, advanced manufacturing, the Permian Basin, and help keep electricity costs down for Texans,” Energy Secretary Chris Wright said in a statement.

The loan is the third significant package to be announced by DOE in recent months as the government supports electric companies’ efforts to maintain a reliable and resilient grid and deliver reliable, affordable energy to customers.

In June, DOE and DTE Energy announced a similar $1.6-billion loan package that will deliver more than $700 million in cost savings to Michigan customers. In February, DOE issued its largest-ever loan guarantee to Southern Company, supporting $26.5 billion in energy projects in Alabama and Georgia.

“These loans will help lower the cost of investments in our grid that will enhance reliability and resilience for the benefit of our customers,” Chris Womack, chairman, president and CEO of Southern Company, said in a statement at the time.

DOE’s Gregory Beard appeared on a recent episode of the Electric Perspectives podcast to discuss the department’s Office of Energy Dominance Financing and how it is supporting the work that electric companies do in their communities every day. Listen here.

In June, Avangrid announced plans to build a new 82 megawatt-hour battery storage facility in Gilliam County, Ore. – bolstering reliability in the region while supporting Avangrid’s efforts to balance electricity supply and demand in the Pacific Northwest in real time.

A single discharge from the Shutler Energy Storage system will be able to power approximately 3,000 homes in the sparsely-populated county. The facility will come online in 2027, and its construction will create 35 local union jobs.

“Shutler Energy Storage gives us another tool to effectively manage our regional portfolio, improving how we coordinate across our generating assets and make better use of our existing infrastructure,” Avangrid Power CEO Sy Oytan said in a statement. “This added flexibility will allow us to respond quickly to changing grid conditions and operate our fleet more efficiently every day.”

Additionally, Avangrid announced plans to donate $110,000 annually to Condon Early Learning Center and Arlington Childcare Center, two local nonprofits supporting early childhood education and childcare.

"This generous investment by Avangrid will provide vital support not only for our organization, but more importantly for the families, children, and future of Arlington,” said Arlington Childcare Center Board President Mark Moore. “This kind of community partnership provides working families with greater security, allows local businesses to thrive, and ensures that our community’s children have access to quality early learning experiences for years to come.”

In June, NextEra Energy Transmission and the New Mexico Renewable Energy Transmission Authority announced the completion of the 137-mile, 345-kilovolt Crossroads-Hobbs-Roadrunner Transmission Line near the state’s eastern border with Texas.

The line was completed ahead of schedule and is projected to reduce residential customers’ bills in the surrounding area by $13 per month.

“The Crossroads project demonstrates New Mexico's leadership in building the infrastructure that drives economic development and affordability for everyday New Mexicans,” New Mexico Governor Michelle Lujan Grisham said in a statement. “Together, we are building energy, transmission and jobs that will power our workforce and economy, reliably and affordably, for generations to come.”

The project is one of several that America’s investor-owned electric companies are spearheading to deliver reliable, affordable energy to customers. EEI members will invest $1.4 trillion through 2030 to strengthen the grid and support the communities that depend on them.

“At a time when America needs more electricity, needs it affordably, and needs it now, this project shows what's possible when transmission developers, strong collaboration, community engagement and disciplined execution come together,” said NextEra Energy Transmission President Matt Valle. “This is speed-to-power at its finest and the kind of infrastructure that will power communities well into the future.”

Fair share agreements with large load customers “place downward pressure on average prices” for all customers when implemented correctly, according to a new analysis from The Brattle Group.

The study, commissioned for Alliant Energy, looked at large load demand in Iowa and Wisconsin. It found that tariffs and contracts that ensure hyperscalers and large customers pay their fair share not only protect existing customers from cost increases - they help ease price pressures by paying for grid upgrades and spreading fixed costs across a larger base.

As of June, regulators in 24 states - including in Iowa and Wisconsin - had approved at least one large load tariff, which electric companies use to ensure residential customers don’t subsidize energy infrastructure needed to serve data centers. Decisions are pending in an additional four states.

“Our analysis shows that affordability outcomes will depend significantly on how utilities structure rates, contracts, and cost allocation mechanisms,” Brattle Principal Ryan Hledik, a coauthor of the report, said in a statement. “When incremental revenues from large customers meet or exceed the costs they impose on the system, existing customers can be protected while communities still benefit from economic development and infrastructure investment.”

The study noted that states experiencing the fastest electricity demand growth have historically seen the largest declines in inflation-adjusted electricity prices. Its findings add to a growing pool of research suggesting data centers and large load customers do not drive up electricity prices for customers when electric companies implement tariffs and other specialized contracts to protect customers.

A separate recent analysis from Lawrence Berkeley National Laboratory and The Brattle Group found that “state-level load growth was linked to declining all-sector average retail prices in recent decades, including from 2019 to 2025, in most states.” And, earlier this year, a Charles River Associates study similarly found that electricity rates have remained broadly stable in most states and have generally tracked inflation over time. Outside the PJM Interconnection region, it found that customers have largely been shielded from cost increases related to data centers.

Alliant Energy is in the midst of a five-year rate freeze in its Iowa service territory that was made possible by data center and large load investments in the grid. Similar rate freezes have been approved in Alabama and proposed in Michigan, Wisconsin, and other states.

An Alliant Energy-supported data center project in Cedar Rapids, Iowa, and the benefits it has provided to the surrounding community were the focus of a recent episode of the Electric Perspectives podcast. Learn more at electricperspectives.com/podcast.

“We know it feels like every bill is higher right now – from housing to groceries to power – and that can put a strain on families. We also understand that our customers depend on us to provide safe, reliable energy, day in and day out, at the lowest possible price," Duke Energy Florida State President Melissa Seixas said in a statement. “This is the third rate reduction for our customers this year, supporting our commitment to delivering positive outcomes that have a real, tangible impact on their wallets and in their lives.”

The reduction reflects the difference between anticipated storm cost recovery related to hurricanes Debby, Helene, and Milton, and what the company actually incurred. Rates were reduced for a similar reason in February. Duke Energy Florida also cut rates in March, as it does every year, to support customers during a period when energy use is typically higher.

Additionally, Duke Energy Florida estimates its customers will save more than $1 billion from infrastructure investments the company made last year to expand its generation portfolio, upgrade natural gas plants, make infrastructure more weather-resilient, and deploy self-healing grid technologies.

Across the country, EEI member companies will invest more than $1.4 trillion during the next five years to make the grid stronger, more resilient, and more efficient – allowing them to meet rising energy demand while continuing to deliver the reliable, affordable energy that customers count on. They will invest more than $238 billion this year alone.

Many, like Duke Energy Florida, are also freezing or reducing rates. In March, Pacific Gas and Electric Company lowered electric rates for the fifth time since 2024. In May, Georgia’s public service commission approved a plan to lower rates by roughly $50 per year for the typical residential customer after previously instituting a multi-year rate freeze, thanks in part to Georgia Power’s work with data center developers. Similar rate freezes have been approved in Alabama and Iowa and proposed in Michigan.

A recent study from Concentric Energy Advisors (CEA) identified the grid’s 22,000 generators, 55,000 substations, 642,000 miles of high-voltage transmission lines, and 6.3 million miles of distribution infrastructure as “the enabling platform for economic and national security,” delivering “reliable power to all sectors of the economy, including essential services such as defense, emergency response, water systems, and communication.”