The parties, which have had a long-standing commercial relationship, expect to support existing and new large load opportunities across Xcel Energy’s service territories via improved collaboration on generation, storage, and associated transmission investments.

Shapiro said the move is expected to save 67 million Americans about $27 billion on their energy bills, bringing total savings for PJM customers to roughly $45 billion.

Modernizing existing plants provides one of the fastest and most cost-effective ways to deliver reliable power while preserving high-wage energy jobs, particularly across Appalachian communities that have long powered the nation.

Critics argued AEP utilities were trying to offload capacity they acquired to serve data centers that didn’t materialize. FERC appeared to echo that rationale.

Despite cutting its large load forecast from 30 GW to 13 GW through a new data center tariff, American Electric Power’s Ohio utility is still inflating its demand forecast, driving up capacity and transmission costs, according to the Ohio Manufacturers’ Association.

U.S. peak power demand is forecast to rise by 120 GW over the next five years, of which industrial consumption will account for about 24 GW, according to analysts at ICF. Oil and gas remains a key driver of industrial power demand and companies continue to seek efficiencies from electrification.