House Passes Bill to Shield Ratepayers From Data Center Power Costs

The U.S. House of Representatives passed H.R. 9340, the Ratepayer Protection Act, by a vote of 417 to 3 on September 16, the House Energy and Commerce Committee said in a press release.

The bill would require state public utility commissions to consider standards under which data centers drawing 100 megawatts or more pay the full incremental costs of the electricity and infrastructure needed to serve them. These costs could include new generation, transmission and grid upgrades. Regulators could also require financial assurances to prevent costs from shifting to other customers if a data center reduces operations or leaves the system.

The legislation uses existing authority under Section 111(d) of the Public Utility Regulatory Policies Act. States would retain authority to decide how to apply the standard within their utility systems. The bill now goes to the Senate for consideration.