Montana Attorney General Austin Knudsen, joined by 15 other state attorneys general, announced Wednesday the launch of an investigation into major technology companies over what they allege are misleading claims about being powered entirely by renewable energy.
In a letter sent to executives at Microsoft, Meta, Google, and Amazon, Knudsen said the companies’ reliance on purchasing renewable energy certificates (RECs) to offset fossil fuel use threatens the reliability of the nation’s electric grid and may violate state consumer protection laws.
“These companies are purchasing unbundled renewable energy certificates, which allow them to claim they use renewable energy even though they rely heavily on fossil fuels, especially at their data centers,” Knudsen said. “As a result of big tech’s misleading energy use claims, coal and natural gas plants are being shut down, putting communities across the country at an increased risk of blackouts over the next few years. In Montana, reliable energy—like fossil fuels—are a vital part of our economy and keep us warm during harsh winters. Not only is our electric grid being threatened, but the companies could be in violation of Montana law. As attorney general, I am committed to getting answers.”
Knudsen warned that the companies’ claims may run afoul of Montana’s Unfair Trade Practices and Consumer Protection Act if they mislead consumers with false information.
According to the coalition, RECs are tradeable credits that show renewable energy was produced and added to the grid but do not directly reduce emissions from a company’s own operations. By marketing themselves as 100% renewable, the attorneys general argue, tech companies pressure utilities to retire fossil-fuel plants that provide essential baseload power.
Attorneys general from Alabama, Alaska, Arkansas, Florida, Indiana, Iowa, Kansas, Missouri, Nebraska, North Dakota, Oklahoma, Pennsylvania, South Carolina, West Virginia, and Wyoming joined Knudsen in the letter.
The coalition is demanding that Microsoft, Meta, Google, and Amazon provide detailed responses on their energy usage and REC purchases by October 27.
By: DNU staff