The U.S. House of Representatives passed the Ratepayer Protection Act on September 16 by a vote of 417-3, establishing new federal standards for large-load electricity users. The legislation requires state regulators to consider rate designs ensuring data centers with peak demand of 100 megawatts or more at a single site bear all incremental costs for generation, transmission, and distribution upgrades, including providing financial assurance or capital contributions.
States must begin reviewing the standard within one year of enactment and complete consideration within two years, though jurisdictions with equivalent existing standards are exempt. Committee Chairman Guthrie stated that data center operators, rather than households and small businesses, should absorb the costs associated with their electricity consumption. The bill now advances to the Senate for consideration.
U.S. House Passes Bill Requiring Large Data Centers to Cover Grid Upgrade Costs
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