H.R. 9340

Ratepayer Protection Act

Sponsor: Gabe Evans

42 cosponsors
Follow this bill

In plain English: what this bill does

This bill would require state utility regulators to adopt a federal standard for electricity sold to very large data-center customers. Under it, a utility would have to charge such a customer enough to cover the full added cost of any new power generation, transmission, or distribution upgrades needed to serve it, even if the customer later leaves. Utilities would also have to get financial guarantees or payments from these customers before building those upgrades.

Who this affects

  • Large-load customers: They would have to pay the full added cost of upgrades made to serve them, even if they end their contract, and they would have to provide financial assurances or contributions before those upgrades are built.
  • Electric utilities: They would have to design their rates so large-load customers cover the full added cost of upgrades, and they would have to require those customers to provide financial assurances or contributions before building the upgrades.
  • State regulatory authorities and nonregulated electric utilities: They would have to begin considering this standard within 1 year after the law is enacted, or set a hearing date for it, and finish considering it and make a decision within 2 years.
  • States that have already acted: The standard would not apply to a utility if, before the law was enacted, its state had already put the standard or a similar one in place, had held a proceeding on it, or had voted on it in the legislature.

Words to know

  • Large-load customer: A non-residential electricity user with facilities that mainly run information technology and data storage, and that together need 100 megawatts or more of power at one site or campus.
  • Incremental cost: The extra cost that is added because of a specific project, beyond what the utility already spends.
  • Financial assurances: Promises or deposits, such as guarantees or security payments, that a customer provides to show it will cover a cost.
  • Nonregulated electric utility: An electric utility whose rates are not set by a state regulatory agency.

For example

Made-up situation: A data center company asks a utility for 150 megawatts of power for its campus, which qualifies it as a large-load customer. The utility needs to build a new substation to supply that power. Under this bill, the utility would first require the company to provide financial assurances or payments to cover the cost of the substation. If the company later ends its contract, the company would still have to pay the full added cost of that substation.

Written by AI from the bill's text below; it can be wrong. How it's written

Official summary

Written by the Congressional Research Service.

Ratepayer Protection Act

The bill requires state utility regulators and nonregulated utilities to consider implementing a standard to hold certain large-load customers responsible for the costs associated with any generation, transmission, or distribution upgrade of electric service necessary to serve such customers. A large-load customer means a non-residential electric consumer that enters, or requests to enter, an agreement concerning the sale of electric energy primarily to operate information technology infrastructure and related systems pertaining to data storage and computational applications and services (e.g., data centers) that have a peak electric demand of 100 megawatts or more at a single site or campus. 

Specifically, the bill requires states to consider implementing a federal standard for large-load customers. The standard must require rates charged by electric utilities for providing electric service to a large-load customer to be designed to recover from the large-load customer the full, incremental cost of any generation, transmission, or distribution upgrade necessary to serve such customer. This rate must include the costs that would be incurred if the large-load customer terminates an agreement with the electric utility pertaining to the sale of electric energy or otherwise ceases the purchase of energy from the electric utility.

Under the standard, an electric utility must require the large-load customer to provide to the utility financial assurances or contributions to cover the cost of any generation, transmission, or distribution upgrade that is necessary to serve the load of a large-load customer before the utility makes any generation, transmission, or distribution upgrade.

Text of the bill

Expand all
Sec. 2. Federal standard relating to large-load customers Changed · Sep 10

Where this section came from

  1. Jun 18, 2026 · Introduced in House Referred to House Committee on Energy and Commerce, Jun 18
  2. Sep 10, 2026 · Reported in House Marked up by House Committee on Energy and Commerce, Jul 20 Marked up by House Committee on Energy and Commerce, Jul 21 Reported by House Committee on Energy and Commerce, Sep 10 Committee members' individual votes aren't in our records.

In plain English: what this change does

The main change narrows who counts as a "large-load customer." Before, the term covered any non-residential electric customer that requested or entered a contract for facilities with a combined peak electric demand of 100 megawatts or more at one site or campus. Now it also requires that those facilities primarily use electricity to run information technology infrastructure, such as data storage and computing systems, so the definition applies only to that kind of facility. The rest of the section, including the cost-recovery and financial-assurance requirements and the related deadlines for state regulators, is unchanged.

Written by AI from the two versions below; it can be wrong. How it's written

What changed in the text

… 5 unchanged passages …

(C) Large-load customer defined. In this paragraph, the term large-load customer means a non-residential electric consumer that, on or after the date of the enactment of this paragraph, requests to enter into, or enters into, a contract or other agreement pertaining to the sale of electric energy for one or more facilities that — (i) require electric energy primarily to operate information technology infrastructure and related systems pertaining to data storage and computational applications and services; and (ii) have, in the aggregate, a peak electric demand of 100 megawatts or more at a single site or campus.

… 20 unchanged passages …

What is a markup?

A markup is a committee meeting where members go through a bill and vote on changes before sending it to the full chamber.

In plain English

This section adds a rule to federal utility law requiring electric utilities to charge large data-center-type customers (those using 100 megawatts or more at one site) enough to cover the full added cost of any power generation, transmission, or distribution upgrades needed to serve them, even if they later leave. It also requires utilities to get financial guarantees or payments from these customers before building those upgrades. State regulators must start considering this standard within one year and finish within two years, though states that already acted on it before enactment may be exempt.

Written by AI from the text below; it can be wrong. How it's written

(a) Federal standard relating to large-load customers. Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:

Text this section adds to the law

(22) Standards for large-load customers

(A) Recovery of full, incremental cost of upgrades. A rate charged, or entered into, by an electric utility for providing electric service to a large-load customer shall be designed to recover from the large-load customer the full, incremental cost of any generation, transmission, or distribution upgrade necessary to serve the load of such large-load customer, including in the event of such large-load customer terminating a contract or other agreement with the electric utility pertaining to the sale of electric energy, or otherwise ceasing the purchase of electric energy from the electric utility.

(B) Financial assurances and contributions. Before making any generation, transmission, or distribution upgrade that is necessary to serve the load of a large-load customer, an electric utility shall require the large-load customer provide to the electric utility financial assurances or contributions to cover the cost of such upgrade.

(C) Large-load customer defined. In this paragraph, the term large-load customer means a non-residential electric consumer that, on or after the date of the enactment of this paragraph, requests to enter into, or enters into, a contract or other agreement pertaining to the sale of electric energy for one or more facilities that—

(i) require electric energy primarily to operate information technology infrastructure and related systems pertaining to data storage and computational applications and services; and

(ii) have, in the aggregate, a peak electric demand of 100 megawatts or more at a single site or campus.

(b) Conforming amendments

(1) Obligations to consider and determine. Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended—

(A) in subsection (b), by adding at the end the following:

Text this section adds to the law

(9)

(A) Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall commence consideration under section 111, or set a hearing date for consideration, with respect to the standard established by paragraph (22) of section 111(d).

(B) Not later than 2 years after the date of enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which the State has ratemaking authority) and each nonregulated electric utility shall complete the consideration and make the determination under section 111 with respect to the standard established by paragraph (22) of section 111(d).

(B) in subsection (c)—

(i) by striking subsection (b)(2) and inserting subsection (b); and

(ii) by inserting In the case of the standard established by paragraph (22) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (22). after paragraph (21).; and

(C) by adding at the end the following:

Text this section adds to the law

(i) Other prior state actions. Subsections (b) and (c) shall not apply to the standard established by paragraph (22) of section 111(d) in the case of any electric utility in a State if, before the date of enactment of this subsection—

(1) the State has implemented for the electric utility the standard (or a comparable standard);

(2) the State regulatory authority for the State or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the electric utility; or

(3) the State legislature has voted on the implementation of the standard (or a comparable standard) for the electric utility.

(2) Prior and pending proceedings. Section 124 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by adding at the end the following: In the case of the standard established by paragraph (22) of section 111(d), the reference contained in this section to the date of enactment of this Act shall be deemed to be a reference to the date of enactment of that paragraph (22)..