In the latest Hilltop Talks episode, Tom Kozlik speaks with Rachel Cortez from Moody’s Ratings about the growing strain on U.S. power systems and the rising costs of electricity. Their discussion highlights how increasing demand—driven by data centers, electrification, and economic growth—combined with policy and infrastructure challenges, is reshaping the energy landscape. Both public and investor-owned utilities are facing mounting costs, political pressure, and regulatory scrutiny, suggesting that higher electricity bills and ongoing infrastructure investment will remain a reality for years to come. In this episode: · The impact of data centers and AI on rising U.S. electricity costs · Key drivers of increased demand and how electricity rates are determined · How utilities are managing rapid growth in data center energy needs · The role of carbon transition and net-zero policies in shaping electricity bills · How data centers are influencing renewable energy goals and timelines · Emerging technologies that could help address energy and affordability challenges · Differences in impact between investor-owned utilities (IOUs) and public power providers

The Cost of Powering the Future: Public Power, Data Centers, and the Strain on the Grid

HilltopTalks: Politics & Finance with Tom Kozlik

# Full Transcript

**Podcast:** HilltopTalks: Politics &amp; Finance with Tom Kozlik

## Transcript

This is Tom Kozlik, Head of Public Policy and Municipal Strategy at HilltopSecurities. Thank you for joining us for this 2026 episode of the Hilltop Talks Politics and Finance Podcast. On this program, we speak with subject matter experts about the issues where politics and finance meet across the federal, state, and local levels in the United States. We often focus on public finance and the municipal bond market, but the bigger story is usually how the country pays for and finances

growth, public services, and infrastructure. Today we are talking about energy, public power, and the strain that new demand is placing on the systems people rely on every day. Data center construction is helping drive economic growth, but it is also becoming a source of public tension around the country. A May 2026 Gallup poll found that seven in 10 Americans oppose building AI centers in their local area and nearly half strongly oppose.

That opposition is tied to real concerns. People worry about environmental effects, quality of life, pressure on the power grid, and higher electricity use. Many are also worried about what all of this could mean for their monthly utility bills. Bloomberg recently captured the mood well in its reporting on the political fallout from rising electricity costs. Around the country, high power bills are putting pressure on households and drawing voter attention in a way that we have not seen in years.

For many people, this is no longer an abstract debate about tech change or economic growth. It is about affordability and whether the cost of modern life is moving out of reach. Energy and power are now economic stories, political stories, and public finance stories. And to help us understand what is changing and how this is evolving, I'm joined today by Rachel Cortez of Moody's Ratings.

Rachel manages a large portfolio of U.S. Municipal Public Power Utilities, Joint Action Agencies, and Generation and Transmission Cooperatives. Rachel, thanks for joining us today. Thank you for having me. Glad to be here. So we're hearing a lot about data centers and AI, which has taken the economy and the world by storm.

Is this the main reason for these rising, if not in some areas, skyrocketing electricity costs in the U.S.? Well, electricity bills are increasing for a few reasons. And data centers are a big part of that story, but they aren't the only reason. And depending on where you live in the U.S., different reasons could have different impacts on your bill. So I'll list a few of the reasons.

The top reason for increasing electricity bills is, as you mentioned, increased demand for electricity. In April, the U.S. Energy Information Administration came out with its annual energy outlook, and it reported that after decades of flat usage trends, electricity demand in the U.S. has risen by more than 2% over the past five years. And it's projected ...

The Cost of Powering the Future: Public Power, Data Centers, and the Strain on the Grid

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The Cost of Powering the Future: Public Power, Data Centers, and the Strain on the Grid

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.