HARRISBURG, Pa. (AP) — The artificial intelligence boom is leading to fights in some states over growing utility profits, as governors, attorneys general and others protesting rising electricity bills say cash-strapped residents are stuck in a broken system.

Officials and lawmakers in at least six states — including Arizona, Indiana, Maryland, New Jersey, New York and Pennsylvania — are going to new lengths to try to block rate increases proposed by utilities. Some are pressing utilities to completely change their model for financing major system upgrades.

The push comes during a midterm election year in which affordability is the leading theme in Democrats’ attempts to loosen Republicans’ control of Washington.

Arizona Attorney General Kris Mayes, a Democrat who is seeking reelection this year, is challenging two utility rate increase requests in front of the state’s utility regulatory board.

“I felt like it’s never been more important to stand up against the blatant corporate greed of our monopoly utilities in Arizona,” Mayes said in an interview.

The fights are getting noticed on Wall Street

The voracious energy demands of AI data centers have driven up electric prices in some regions and launched a moneymaking energy-sector construction boom.

For years, consumer advocates have tried to challenge the size of a utility’s investment return in front of regulators. But maybe not like this, consumer advocates say.

“We’ve entered into this era of expensive energy and (demand) growth, and we’re seeing utility profits at record highs and rising utility bills,” said Matt Kasper of the Energy and Policy Institute, which pushes utilities to keep rates low and use renewable energy sources.

Utilities were long viewed as a stable haven for investors, with a reliable source of income and predictable demand. Because of that lower risk, the utility’s sector investment returns are typically on the low end compared to other sectors, analysts say.

However, utilities — many of which are owned by multibillion-dollar, for-profit parent companies — have seen share prices perform particularly well during the data center expansion.

The investment returns that utilities get from regulators aren’t the sole reason consumers’ bills are rising, but researchers suggest they are a contributing factor. In March, the Energy and Policy Institute issued a report that said the profits of 110 for-profit utilities rose from just under $39 billion in 2021 to over $52 billion in 2024.

Mark Ellis, a former utility executive-turned-consumer advocate, said about 10% of the typical customer bill is what he called a for-profit utility’s “excess profit,” above what might be considered reasonable under long-standing Supreme Court precedent.

Instead of regulators setting returns above what the market might require, utilities should instead shop for the lowest-cost investor cash, much like someone might shop for the lowest interest rate on a loan, Ellis said.

Paul Ferraro, an economics professor at Johns Hopkins University, said that targeting utility investment returns is a political action, not an economic action.

“That’s an action that’s aiming to address the deep social disagreements we have about who should benefit from essential infrastructure,” Ferraro said. “But it’s not going to address the key challenges that the electricity sector is facing.”

That includes investment in modernization, expansion, renewable energies and distributed sources of power, Ferraro said.

‘Affordability’ has reached corporate earnings calls

Travis Miller, an energy and utilities analyst for Morningstar, said utility executives on earnings calls are emphasizing efforts to cut costs or protect residential customers from the cost to supply electricity to data centers.

“Affordability is probably the number one issue that executives and investors are thinking about right now in the utility sector,” Miller said.

If rates aren’t affordable currently, there’s no way that utilities can get the rate increases they need to boost earnings and dividends for investors, Miller said.

Utilities point to federal data showing that home electricity bills as a proportion of household income have fallen in the past couple decades. They defend the investment returns they are granted by state regulators as critical to raising the cash they need to appropriately maintain electric grids and ensure reliability for millions of people.

They also warn that investors will simply send their cash to utilities in other states that promise higher returns.

Critics call that fearmongering.

Earlier this month, the New Jersey Board of Public Utilities launched what its president, Christine Guhl Sadovy, called one of the most consequential regulatory reviews in a generation, to question how utilities “should earn revenue in a modern energy system.”

In recent weeks, Pennsylvania Gov. Josh Shapiro pressured PECO, the Philadelphia-area utility subsidiary of Exelon Corp., to withdraw a 12.5% rate increase, or $20 per month extra for the average residential customer. Shapiro, a Democrat running for reelection this year, then issued a letter to utility executives, taking a whack at utility profits and saying that the “20th century utility model is broken.”

“We can no longer simply prioritize corporate profitability to drive infrastructure development,” Shapiro wrote.

In a note to investors, one analyst called it “Quaker State Sticker Shock,” and the share prices of companies that own Pennsylvania-based utilities lagged their peers in the following days.

For its part, Exelon — the Chicago-based parent of Commonwealth Edison, PECO, Baltimore Gas and Electric and several other utilities — emphasized that it recognizes the importance of affordability.

Calvin Butler, Exelon’s president and CEO, told analysts on its first-quarter earnings call May 6 that it was committed to justifying what it spends and keeping energy bills as low as possible. Its decision to withdraw its rate increase request came after conversations with “stakeholders” who said, “Hey, if you could partner with us to address the affordability issue and lean in, timing is not the best right now,” Butler said.

In Indiana, Republican Gov. Mike Braun appointed a new slate of utility commissioners with a mission to face down rate increases.

Their first big test is a request by AES Indiana for a 10.1% increase, or $193 million a year more from ratepayers, said Ben Inskeep, program director for the Indianapolis-based consumer advocate Citizens Action Coalition.

As part of it, AES Indiana — whose parent company is being taken private in a $33.4 billion deal led by private investment giant BlackRock — sought a 10.7% return on its cash.

Inskeep said an 8% return — instead of 10.7% — would slash the proposed rate increase nearly in half.

In Arizona, Mayes is challenging a pair of 14% proposed increases that she said could be dramatically reduced if the companies are simply paid the cost to maintain reliable service.

“It’s becoming unbearable for the people in Arizona,” Mayes said. “And I think we have to fight back.”

HAVANA (AP) — CIA Director John Ratcliffe met with Cuban officials including Raúl Castro’s grandson during a high-level visit to the island Thursday, Cuban and U.S. officials said.

Ratcliffe met with Raúl Guillermo Rodríguez Castro, Interior Minister Lázaro Álvarez Casas and the head of Cuban intelligence services, and discussed intelligence cooperation, economic stability and security issues. A CIA official confirmed the meetings to the AP.

Ratcliffe was there “to personally deliver President Donald Trump’s message that the United States is prepared to seriously engage on economic and security issues, but only if Cuba makes fundamental changes,” the CIA official said.

An official statement from Cuba’s government noted that Thursday’s meeting “took place … against a backdrop of complex bilateral relations.”

While the U.S. stressed that Cuba cannot continue to be a “safe haven for adversaries in the Western Hemisphere,” the Cuban delegation insisted that the island presents no threat to U.S. security. Cuban officials also took issue with the nation’s continued inclusion on the U.S. list of state sponsors of terrorism.

Rodríguez Castro previously secretly met with U.S. Secretary of State Marco Rubio on the sidelines of a Caribbean Community summit in St. Kitts in February. While he’s never occupied a government post, he served as his grandfather’s bodyguard and later as head of Cuba’s equivalent of the Secret Service.

U.S. and Cuban officials also met earlier this year i n Cuba. The ongoing meetings between U.S. and Cuban officials mark the first U.S. government flights to land in Cuba other than at the U.S. Naval Base at Guantanamo Bay since 2016.

Thursday’s meeting comes weeks after the Cuban government confirmed that it had recently met with U.S. officials on the island as tensions between the two sides remain high over the U.S. energy blockade of the Caribbean country and as Cuba’s power grid has collapsed and energy to its eastern provinces has been cut. The U.S. blockade of fuel to the island has heightened its economic woes, with reduced work hours and food spoilage as refrigerators stop working.

Earlier this week, the U.S. State Department reiterated that the U.S. will provide Cuba with $100 million in humanitarian assistance and support for satellite internet “if the Cuban regime will permit it.”

In late January, Trump threatened tariffs on any country that sells or supplies oil to Cuba. Though Trump also has threatened to intervene in the country, and Cuban President Miguel Díaz-Canel said recently that his country was prepared to fight if that should happen, sources told the AP earlier this month that military action is not imminent.

LOS ANGELES (AP) — A licensed drug addiction counselor who delivered Matthew Perry the doses of ketamine that killed him, and later became a key informant in the investigation, was sentenced Wednesday to two years in prison.

At a federal court in Los Angeles, Judge Sherilyn Peace Garnett handed down the sentence to 56-year-old Erik Fleming for his role in the death of the “Friends” star.

“It’s truly a nightmare I can’t wake up from,” Fleming said in a deep, somber voice from the podium before his sentencing. “I’m haunted by the mistakes I made.”

The judge ordered Fleming, who has been free on bond, to turn himself in to serve his term in 45 days. He was also sentenced to three years of probation.

Fleming was the fourth defendant sentenced of the five who have pleaded guilty in prosecutions over the actor’s 2023 death in the Jacuzzi at his Los Angeles home. Fleming connected Perry to Jasveen Sangha, the convicted drug who prosecutors called “The Ketamine Queen.” He delivered drugs from her house to Perry’s, and marked them up to make a profit.

Fleming gave up Sangha to investigators the same day they first found him at his sister’s house, where he was sleeping on the couch several months after Perry’s death. Sangha was sentenced last month to 15 years in prison.

Fleming’s attorney Robert Dugdale told the judge he “handed over the Ketamine Queen on a silver platter.”

“They didn’t have a clue who she was before that day,” Dugdale said.

He would likely have gotten about four years in prison if it weren’t for his cooperation.

The prosecution said he deserved credit for doing the right thing, but argued that he did so only when confronted and cornered by authorities.

“Mr. Fleming didn’t cooperate because he had a benevolent motive, or because he wanted justice for Mr. Perry,” Assistant U.S. Attorney Ian Yanniello said. “He wanted to save himself.”

The judge also pointed out that Fleming didn’t come forward in the months after Perry’s death, that he didn’t create new evidence by making phone calls to co-conspirators or anything similar, and that investigators might have gotten the same information he gave them simply through the seizure of his phone.

But all agreed that his cooperation sped up and smoothed the investigation.

Prosecutors also said Fleming’s job as a drug counselor made him especially morally culpable for selling street drugs to a victim who had a public, well-documented battle with addiction, even if he wasn’t acting as counselor to Perry.

Fleming became the first defendant to plead guilty in August 2024, admitting to distribution of ketamine resulting in death. That was before arrests in the case were even announced, and Wednesday was his first court appearance since his role became public knowledge.

Defense lawyers emphasized that he had no criminal record and said he spent only 11 days as a drug dealer, with a single customer. Fleming told the judge it was an act of desperation “in the midst of the worst time of my life.”

Fleming told the judge his great remorse “can’t compare to the agony I’ve caused.”

Outside the courthouse, he said “my chest and heart hurt every day for the pain I caused not only his family but the millions of people who adore him.”

He and his lawyers also highlighted what they called his extraordinary moves toward rehabilitation, spending 20 months sober and helping to establish a sober living home.

Perry had been receiving ketamine treatments for depression — an increasingly common off-label use.

Perry was seeking more of the drug than he could get through doctors and asked a friend to help him get more. She introduced him to Fleming, a former film and television producer whose career had been ravaged by addiction but had since become a drug counselor.

Fleming said he was in the midst of a major relapse brought on by life struggles. He got ketamine from Sangha and took it to Perry’s house where he sold it to the actor’s live-in personal assistant Kenneth Iwamasa.

His deliveries included 25 vials for $6,000 four days before Perry’s death.

Iwamasa would inject Perry from that batch on Oct. 28, 2023, and hours later, he found the actor dead. A medical examiner’s report found that Perry died from the acute effects of ketamine, a surgical anesthetic, and drowning was a secondary cause.

The 2 1/2-year investigation and prosecution that resulted should come to a close in two weeks with the sentencing of Iwamasa.

Perry, who died at 54, became one of the biggest stars of his generation as Chandler Bing on “Friends,” NBC’s culture-changing sitcom that ran from 1994 to 2004.