Particle.news

House Panel Moves Bill to Make Data Centers Pay for Grid Upgrades

The bill would push states to adopt a federal large-load standard that makes big electricity users pay for generation, transmission, grid upgrades.

Overview

  • The Energy and Commerce subcommittee is scheduled to mark up the Ratepayer Protection Act Wednesday, which is co-sponsored by Rep. Kathy Castor and Rep. Gabe Evans and has rare bipartisan backing.
  • The measure would require state regulators to consider a federal standard that directs large power customers to cover 100 percent of costs for new generation and transmission needed to serve them.
  • Microsoft publicly endorsed the bill and Amazon Web Services said it supports the idea, while the Data Center Coalition is still reviewing details and some major firms have not taken public positions.
  • Progressive Democrats and advocacy groups say the bill leaves gaps on environmental, land-use, water and long-term cost allocation and are pressing for more prescriptive laws such as Sen. Chris Van Hollen’s proposal.
  • State regulators have raised alarms about a surge in data-center interconnection requests and parallel actions in Congress and at the DOE aim to tighten reporting and standards, which could affect who pays rising utility bills for households and small businesses.