Tesla, Google, Others form Lobbying Coalition for Better Grid Utilization

---

Written by Danny Levin, Deputy Editor for IIR News (Sugar Land, Texas)

---

Summary

Tesla, Google and others founded a coalition that pushes for increasing power grid utilization in order to address energy costs.

---

Group Named 'Utilize'

A group of companies that includes Tesla and Google founded a coalition that is focused on lobbying for increasing power grid utilization in an effort to lower electricity costs.

Other members include air conditioning giant Carrier, which provides smart heating and cooling solutions, as well as data center developer Verrus.

The coalition, dubbed Utilize, supports "technology-neutral policies that increase grid utilization by aligning planning, incentives, and regulatory frameworks around affordability, reliability, and speed. The coalition will engage directly with states to help translate research into action, working alongside policymakers, industry, utilities, and consumer advocates to ensure better grid utilization becomes a core principle of modern grid planning."

Utilize cited two research points: recent analysis from Duke University, examining 22 U.S. regional power systems, found that the electric grid operates at just 53% of capacity on average--meaning that generation, transmission and distribution infrastructure is underutilized for much of the year.

A Stanford University study of the Western U.S. grid found that even during peak periods, most transmission lines were carrying only 18 to 52% of their available capacity, with the majority clustered around roughly 30% utilization. This indicates transmission capacity exists but is not consistently accessible, "due to operational and planning constraints, making grid utilization a critical tool for serving new demand and spreading fixed grid costs over more electricity sales," Utilize said in the press release.

Utilize said it soon will release new, independent research from The Brattle Group that will show ratepayers could save more than $100 billion over 10 years on their electricity bills due to system utilization improvements.

Rising electricity bills are a major concern amid the bourgeoning U.S. data center buildout, as grid power has so far been unable to keep pace with new data center construction.

Tesla and Google's Motivation

Tesla and Google both have skin in the game.

Tesla is leaning into providing battery storage and distributed energy resources, which can help improve affordability by meeting power demand in times of high demand. The company's Megapack batteries are being installed across the country both for utility-scale power, including generation for data centers, and as backup power for Elon Musk-owned xAI. For more information, see March 6, 2026, article - Tesla Continues to Deploy Revenue-Generating Megapack Batteries.

Google is looking to secure power for its data centers. The company's parent, Alphabet Incorporated, has agreed to acquire Intersect Power, an independent power producer (IPP), focused on utility-scale solar plants co-located with data center infrastructure. For more information, see January 2, 2026, article - Google Acquires Intersect Power Specializing in Large Solar Plants, BESS.

New Coalition's First Legislative Victory in Virginia

The group already engaged in legislation recently passed in Virginia, which hosts more data centers than any other U.S. state.

Utilize said in the press release that some members of the group supported SB 621/HB 434, which now awaits Governor Abigail Spanberger's signature.

The bipartisan legislation would make Virginia the first state to require major utilities to measure and report on grid utilization metrics and then use them during regulatory proceedings with the State Corporation Commission (SCC). In addition, the group already is "engaging governors and lawmakers in other states--across party lines--who have expressed interest in replicating this approach."

The legislation also directs the SCC to explore ways for large-load customers to voluntarily finance the grid upgrades "as a condition of accelerated interconnection."

Virginia can use all the power it can get. Industrial Info is tracking $380 billion worth of active and planned data center projects across the state, with $30 billion attributed to projects under construction. Subscribers to Industrial Info's Global Market Intelligence (GMI) can view a full list of active and planned projects, including the projects under construction.

Key Takeaways

• Tesla, Google and others formed a lobbying group advocating for increased U.S. power grid utilization to address electricity costs.
• The group, named Utilize, has commissioned research noting grid utilization improvements could save ratepayers more than $100 billion over 10 years.
• Utilize already backed legislation recently passed in Virginia that is awaiting the governor's signature.
• Tesla is deploying its Megapack energy-storage batteries and Google is looking to boost its generation capacity to power data centers.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).