Travis Kavulla Explains Why Electric Bills Shot Up

In this episode of the Odd Lots podcast, hosts Joe Weisenthal and Tracy Alloway interview Travis Kavulla, VP of Regulation at NRG, about the complexities of the US electricity grid and the impact of new demands like AI data centers. They discuss the challenges of balancing regulated grid costs with commodity costs, the historical context of electricity market restructuring, and the incentives for utilities to overinvest. Kavulla explains the potential for demand growth from data centers, the constraints on expanding capacity, and the need for regulatory innovations to allocate grid capacity efficiently. The conversation also covers the role of state commissions, the importance of nodal pricing, and the potential for demand flexibility to improve market efficiency, ultimately addressing concerns about rising electricity prices and the future of the US electricity system.