Key facts
- A US House subcommittee advanced the Ratepayer Protection Act (HR 9340).
- The bill requires large-load power users (e.g., data centers) to cover costs for new power plants and grid upgrades.
- This aims to prevent residential consumers from bearing the costs of powering new data centers.
- The bill is bipartisan, introduced by Rep. Gabe Evans (R-Colorado) and co-sponsored by Rep. Kathy Castor (D-Florida).
- The Data Center Coalition supports the bill's approach to ensure industry energy costs are not shouldered by residents.
- Manufacturing groups expressed concern that the bill's scope could impact industries beyond data centers.
A US House of Representatives subcommittee has advanced a bill aimed at ensuring large-load power users, such as data centers, cover the costs associated with powering their operations and the necessary grid infrastructure. The effort seeks to protect residential consumers from potentially higher utility bills.
The House Energy and Commerce Subcommittee on Energy approved the measure, known as the Ratepayer Protection Act (HR 9340), by voice vote. The bill requires developers of projects needing 100MW or more of power to bear the full cost of new power plants, transmission lines, or other grid upgrades.
This bipartisan legislation, introduced by Rep. Gabe Evans (R-Colorado) and co-sponsored by Rep. Kathy Castor (D-Florida), largely aligns with President Donald Trump's previous pledge on ratepayer protection. Major technology companies, including Amazon, Google, Microsoft, and Meta, had previously agreed to ensure that the costs of powering new data centers and associated grid upgrades are not passed on to residential consumers.
Rep. Frank Pallone (D-New Jersey), the panel's top Democrat, described the suite of electricity bills, which also included measures for load forecasting, generator interconnection, and transmission capacity expansion, as a "useful first step." However, he emphasized the need for more aggressive action to hold data center developers accountable and prevent consumers from being burdened with costs.
An industry group representing data center developers, the Data Center Coalition (DCC), has endorsed the House measure. DCC chief executive Josh Levi stated, "We are committed to paying the full cost of the energy we use," and that the organization supports the Ratepayer Protection Act's approach to ensure industry energy costs are not shouldered by residents and businesses.
However, manufacturing groups are urging lawmakers to narrow the bill's scope. The Industrial Energy Consumers of America warned in a letter that the bill's broad definition of "large-load customers" could inadvertently include energy-intensive manufacturing industries, potentially raising costs and creating regulatory uncertainty for global competitors not driving recent electricity demand spikes.
The bill now moves to the full House Energy and Commerce Committee for further consideration and potential amendments.