Tag Archives for fixed incomes

AI Data Centers Spark Utility-Cost Concerns for Older Rate Payers

Published in RINewsToday on May 25, 2026

The Industrial Revolution began at Slater Mill in Pawtucket and transformed the economy through machine-powered manufacturing. Now, 260 years later, the rise of artificial intelligence (AI) is changing the economy again as computers take on more jobs and reshape industries.

Artificial Intelligence may feel distant from the daily lives of many older Rhode Islanders, but the electric bills needed to power it could become personal. As AI data centers expand across the country, consumer advocates and lawmakers are asking whether residential rate payers — including seniors on fixed incomes — could end up subsidizing the energy infrastructure needed by some of the world’s largest technology companies.

For older adults living on Social Security, pensions, or other fixed incomes, even modest increases in electric bills can mean tradeoffs with food, medication, transportation, or home maintenance.

AI data centers have servers and special computer hardware that run AI systems. Thousands of advanced chips quickly process data to train and run AI models for tasks such as analytics, image generation, and chatbots. Large data centers consume significant amounts of electricity and require advanced cooling systems. This has led to concerns about higher electricity bills, increased water use, and environmental impacts.

The rapid growth of AI has accelerated investment by major technology companies, including Amazon, Google, Meta, and Microsoft. By March 2026, Consumer Reports noted that there were 3,069 data centers across the country, with 1,489 more planned or under construction. Rhode Island has seven data centers.

Some researchers say that AI is driving up electricity demand. A report from Bloom Energy in January 2026 predicts that U.S. data centers will use between 80 and 150 gigawatts of energy, almost doubling from 2025 to 2028.

Opposition Builds Against AI Data Center Projects

Gallup Poll’s first survey on data center construction, released on May 13, 2026, found that many Americans are worried about AI data centers being built in their communities. People are concerned about the use of large areas of land and the possible environmental, economic, and social effects. Seven out of ten people surveyed are against these projects in their area, and almost half (48%) are strongly opposed. Only about a quarter support the centers, and just 7% are strongly in favor, notes Jeffrey M. Jones, the author of the Gallup Poll report.

About one in five people who oppose data centers worry about how they might affect daily life. Their concerns include increased noise, air and water pollution, heavier traffic, and the desire to use the land for something else. Some also mention higher utility bills, rising living costs, and the possible need for subsidies.

“Most of the remaining opposition stems from general or specific concerns about Artificial Intelligence,” notes Jones.

Even though many people have concerns, the survey shows that supporters of AI data centers view the situation differently. Most supporters point to potential economic benefits, such as new jobs, increased tax revenue, and improved infrastructure as the main positives.

When it comes to politics, the Gallup poll found that most people—whether Republican, Democrat, or Independent—do not want a data center built near their homes. The survey notes that Democrats are more likely than Republicans to be strongly opposed (56% compared to 39%), with independents in the middle at 48%.

Older Ratepayers Push Back Against Higher Utility Rates

As AI data centers grow rapidly, AARP in Washington, DC, is monitoring rising power demand and the associated costs. Approximately 40 states have considered legislative or regulatory action related to the impact of large data centers on utility costs, grid reliability, or water use.

AARP’s 2025 report, ‘Powering AI, Draining Wallets: Consumers Could Be at Risk for Steep Electric Bills,’ was conducted by the National Opinion Research Center (NORC) at the University of Chicago and sampled U.S. households aged 50+. Survey results show that 69% of people aged 50 and over have seen their electric bills go up in the past year, and one in four say the increase is significant. 78% are worried about rising electricity costs, underscoring the financial stress many older adults feel.

75% of respondents call on state leaders to ensure that regular customers do not have to pay for the electricity used by new data centers. While 78% think data centers should cover their own utility costs rather than receive government assistance, just  3% believe ratepayers should pay.

Both Democrats (76%) and Republicans (74%) want state governments to protect customers from having to subsidize AI data centers.

In Oklahoma Older Residents Weigh In on AI Data Center Debate

Also, an AARP report, “Utility Affordability and Large Data Centers,” noted that older Oklahomans, especially those living on fixed incomes, are very worried about data centers and whether they can afford their bills

“Across the country, states are facing the same fundamental question: how to support rapid growth in energy demand without risking affordability for everyday consumers,” said Jenn Jones, Vice President of Financial Security and Livable Communities at AARP, in an April 28, 2026, statement announcing the release of the report.

The survey found that most Oklahomans (92%) think state leaders should make sure current residential customers do not have to pay for the costs of new data centers. Many (86%) also believe that data center companies should pay for the big electricity and infrastructure costs themselves.

Regulating Rhode Island’s Burgeoning Data Center Industry

Supporters of data center development argue that the facilities can bring construction jobs, permanent technical and security jobs, local tax revenue, and investment in electric-grid infrastructure. The central policy question is not whether data centers should exist, but who pays for the added power capacity they require — the companies that use it, or the broader pool of residential and business customers.

On Jan. 28, 2026, House Speaker Pro Tempore Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly) introduced H 7331 to implement state regulations on data centers being built in Rhode Island. The bill was referred to the House Corporations Committee. In the upper chamber, Sen. Louis P. DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton) later introduced the Senate companion measure, S 2776, on March 4, 2026, which was referred to the Senate Commerce Committee. Both legislative proposals have since been recommended for further study.

“Data centers have become controversial because they often require improvements to the electric infrastructure, with ratepayers footing the bill,” said Rep. Kennedy. “This, coupled with substantial environmental implications, requires a regulatory framework that can balance the economic benefits of data centers with our energy and environmental concerns,” he says.

Both legislative proposals require the Public Utilities Commission to ensure protections for ratepayers in Rhode Island by preventing data center operators from passing their electricity costs on to residential and other business customers. Data centers must pay their own way to protect ratepayers from subsidizing the large-scale private energy demands of these projects, and no costs related to the construction of electric infrastructure should be allocated to other customers.

It would also require each data center to submit an annual report to the RI Department of Environmental Management detailing daily water withdrawals, the cooling technologies used, and water recycling or reuse practices. It would allow the DEM director to require a data center to submit a water efficiency, conservation, or recycling plan as a condition of any permit issued. A final provision requires financial assurance that provides for site restoration in the event of abandonment or cessation of operations.

For older Rhode Islanders, the debate is likely to be less about artificial intelligence itself than about affordability. As data centers expand, lawmakers and regulators will face a basic question: how to support new technology and economic development without shifting private infrastructure costs onto households already struggling with rising utility bills.

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Path to an “age-friendlier” budget

Published in RINewsToday on June 5, 2023

After a 47:10 minute meeting on Friday night, the House Finance Committee approved a $14 billion budget for the 2024 fiscal year that commits funding toward addressing the housing crisis (top priority), supports business development and makes education funding more equitable while limiting the use of one-time revenue to one-time expenditures. 

The passed budget reflects the May revenue estimate that was $61.2 million lower than projected last November. 

On June 2, 2023, the budget passed on a partisan vote of 13-3, sending the budget bill (2023-H 5200A) to the full House of Representatives, which is slated to take it up June 9 at 2:30 p.m. Changes could be made.

Hammering Out a Compromised Budget 

At a news conference held on Friday at 3:30 p.m. before the vote, House Speaker K. Joseph Shekarchi  (D-Dist. 23, Warwick) compared the politics of hammering out the state budget proposal to Democratic and GOP leadership making a deal to avoid a national default earlier this week.  “Nobody, including me and everyone else here, got everything they wanted,” he said, noting that the state budget required “compromise.”  

“Our goal with this budget is to support Rhode Islanders’ needs while responsibly preparing for our future. Our top priority, of course, is addressing our housing crisis, and we have worked hard, in collaboration with Governor McKee and our colleagues in the Senate, to identify the most effective ways we can direct the funding we have toward solutions that will help create more affordable housing access. This budget also strengthens our efforts to provide educational opportunities in K-12 and higher education and supports businesses, working Rhode Islanders, retirees and those struggling to meet their families’ basic needs,” said Shekarchi, in a statement announcing the House Finance Committee’s passage of the budget.

“At the same time, we are being realistic. Given the end of the federal funding related to the pandemic, we need to plan not only for next year, but for the following years, when we are not going to have the level of revenue we’ve been fortunate enough to have for the past few years. We are spending our remaining federal COVID funding and our available revenue on one-time investments rather than creating long-term commitments that we can’t sustain,” he said.  

Adds Marvin L. Abney (D-Dist. 73, Newport, Middletown), chairman of the House Finance Committee: “This budget was carefully crafted so that our residents, particularly our most vulnerable, retain the supports and assistance that they and their families need, so that our businesses have the ability and opportunity to grow, and so that Rhode Island is situated to withstand a very possible financial downtown that will affect both our state and national economies.  Responsible, compassionate and thoughtful decisions were made to create a budget that will benefit all Rhode Islanders and this budget positions the state to be as competitive as possible into the future.”

Taking a Look at Aging Programs and Services 

“I am extremely pleased the budget passed by the House Finance Committee contains important funding that will benefit seniors as well as older adults with disabilities,” says Maureen Maigret, chair of the Aging in Community Subcommittee of Rhode Island’s Long-Term Care Coordinating Council and policy consultant and board member of the Senior Agenda Coalition of RI. “The Office of Healthy Aging (OHA) will receive an additional $250,000 in general revenue for the Aging and Disability Resource Center (ADRC). The ADRC provides counseling about services and benefits and assistance with the application process.  Advocating to strengthen the ADRC (called the POINT) was a high priority for the Senior Agenda Coalition of RI and the Aging in Community Subcommittee of the Long Term Care Coordinating Council,” says Maigret.

According to Maigret, this is the first time that ADRC will receive state funds. To date, it has operated with limited federal dollars and too many persons are not aware of the program. The state funding can be matched by federal Medicaid funds. “ADRC services are critically important for older adults, persons with disabilities and family caregivers, as they attempt to find appropriate services and navigate a sometimes-fragmented system of care, says Maigret.

Maigret says that the budget also adds funds to support two new staff positions for OHA’s protective services unit to deal with increasing reports of elder abuse and exploitation. OHA’s Adult Protective Services received over 6,000 calls last year. The additional funding for these positions will ensure that reports are investigated in a timely manner and protect older adults at risk of abuse and neglect. 

Other notable additions to the budget include an increase in the Personal Needs Allowance (PNA) for nursing home residents on Medicaid to $75/month (from $50.) This amount had not been adjusted since 1999, says Maigret noting that the additional funding will help thousands of nursing home residents pay for such items as haircuts, clothing and, telephone service.

“The House Finance Committee also added $250,000 to increase funding for the Livable Home Modification grant program to $0.8 million,” says Maigret, noting that the program helps pay for costs of support home modifications and accessibility enhancements to allow individuals to remain in community settings. And of course, the funds dedicated to addressing housing affordability although not specific to the older population will benefit them,” adds Maigret. “Overall, these budget additions and the additional funds for community senior services and Meals on Wheels proposed by the Governor demonstrate a continued commitment on the part of our state leaders to address the needs of our growing older population,” she says.

The budget didn’t reinstate the retiree Cost of Living Adjustments (COLAs) eliminated in 2011.  “Once again, retired state workers, teachers, and municipal retirees who are part of the state retirement system have been shown how little they are valued by state legislators”, comments Susan Sweet, a former state associate director of elderly affairs and an advocate for low-income elders. “Although there were many bills in to restore the COLA or at least provide a token payment to these retirees, it appears that no funds at all are being directed towards that purpose.  This is a great disappointment to so many folks who faithfully performed their duties and were stripped of their promised pensions. No wonder that teachers and government workers are reluctant to spend their career lives in the public sector” she states.

Is Proposed House Budget “Age Friendly” ?

Maigret believes that the state has taken some positive steps toward becoming “age friendly” especially if we think of age-friendly with an intergenerational lens. Items that address children and youth such as expanded tuition assistance of Rhode Island colleges are important.  “However, we still have a long way to go in many of the domains for age friendliness,” she notes, “especially in the area of economic security for older adults as many live with income less than $25,000 relying mostly on fixed incomes.” 

Maigret calls on the Rhode Island General Assembly to fund mini-grants to communities to incentivize them to “look at their comprehensive plans with age-friendly lens.” 

Here is the link to the bill to establish the budget:

Click to access H5200A.pdf

Here is the link to the entire budget and every article (as well as how it compares to the budget as submitted by the Governor in January):  https://www.rilegislature.gov/Budget/SitePages/FY24.aspx.

Here is a link to a press release which contains a summary of the highlights of the budget:

https://www.rilegislature.gov/pressrelease/_layouts/15/ril.pressrelease.inputform/DisplayForm.aspx?List=c8baae31-3c10-431c-8dcd-9dbbe21ce3e9&ID=373660.

To watch the House Finance Committee meeting, go to https://ritv.devosvideo.com/show?video=defebab838c1&apg=52ab780b.