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House Passes Bill Urging Data Centers to Pay for Grid Upgrades

The near‑unanimous measure requires state utility regulators to begin considering rules within a year, sending the bill to the Senate with nonbinding language that leaves outcomes uncertain.

Overview

  • The U.S. House approved the Ratepayers Protection Act in a 417‑3 vote on Wednesday, directing state public utility commissions to “commence consideration” of standards to make large data centers cover incremental electric system upgrade costs.
  • The bill targets so‑called large‑load customers that draw substantial power and seeks to shift the cost of new generation, transmission and other upgrades from ordinary ratepayers to data‑center owners, though it does not force full cost recovery by companies.
  • Because the law only requires state regulators to start considering rules within one year, implementation will depend on individual state commissions and utilities rather than a single federal mandate.
  • A small group of progressive lawmakers opposed the measure as too weak and called for stronger steps such as moratoria, while trade groups and some state energy officials praised the bill’s flexibility on state approaches.
  • Next steps include Senate action and state regulatory proceedings, which could affect utility bills, project timelines for AI data centers, and local fights over siting and grid interconnection.