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The Real Reason California Electricity Rates Are the Highest in the U.S.

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After decades of flat growth, U.S. energy demand is projected to surge by up to 25%. What is driving this massive shift? In this episode of 72 & Sunny, Congressman Scott Peters sits down with a San Diego energy expert Scott Anders to discuss the collision of AI data centers, economy-wide electrification, and the urgent need for grid modernization.

We dive deep into why one Microsoft data center can require as much power as 750,000 homes—equivalent to the peak demand of the entire San Diego region. Congressman Peters also breaks down the "permitting paradox": why 1970s environmental laws like NEPA and CEQA are now the biggest obstacles to building the clean energy infrastructure needed to fight climate change.

In this episode, we cover:

  • The AI Surge: Why data centers are becoming the biggest players on the grid.
  • California’s Energy Mix: The truth about our 67% carbon-free status and the role of natural gas.
  • The Cost Crisis: Why 30% of your bill goes toward wildfire mitigation and how subsidies impact rates.
  • Global Competition: Why China is building 260GW of inter-regional transmission while the U.S. lags behind.

Some notable moments from this episode:

  • 00:00 – The end of flat energy growth: A 25% demand surge.
  • 02:12 – The AI "Goliath": One data center vs. 750,000 homes.
  • 03:19 – California’s current energy mix: Are we really 67% carbon-free?.
  • 04:24 – The Duck Curve: Why natural gas ramps up when the sun goes down.
  • 07:40 – Battery Storage: How California avoided blackouts in 2025/2026.
  • 10:43 – Why San Diego has the highest electricity rates in the nation.
  • 13:11 – The "Permitting Paradox": NEPA, CEQA, and the digital divide.
  • 15:21 – Why the Inflation Reduction Act (IRA) needs a faster grid to succeed.
  • 21:14 – China vs. U.S.: The race for ultra-high-voltage transmission.
  • 25:07 – Wildfire mitigation: The hidden cost on your utility bill.
  • 27:51 – The CERTAIN Act & Permitting Reform: What’s next for Scott Peters.
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72 and Sunny

72 & Sunny is a podcast hosted by Congressman Scott Peters (CA-50) about the issues shaping San Dieg 
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