Bipartisan legislation introduced by U.S. Rep. Gabe Evans (R-CO) that would give states a framework for protecting residential and small business customers from higher monthly utility rates passed the U.S. House Energy and Commerce Committee on July 21.
The Ratepayer Protection Act, H.R. 9340, which Rep. Evans sponsored on June 18 alongside lead original cosponsor U.S. Rep. Kathy Castor (D-FL), would establish standards for states and their public utility commissions to consider when connecting large-load customers — such as data centers and hyperscalers — to the electric grid, ensuring the companies pay for the new power generation, transmission lines, and other infrastructure rather than ratepayers.
“America must build the energy infrastructure necessary to win the global AI race and outcompete adversaries like Communist China — but hardworking families should never be forced to subsidize that growth through higher electric bills,” Rep. Evans said. “This bipartisan, common-sense legislation ensures the companies creating new demand for electricity pay for the infrastructure they require — not Colorado families, farmers, seniors, and small businesses.”
If enacted, H.R. 9340 would establish federal standards for state regulators to use when reviewing proposals for new large-load customers with an electricity demand of 100 megawatts or more, according to a bill summary provided by Rep. Evans’ staff.
The bill recommends recovering the full incremental cost of grid upgrades from the large-load customer over time through special rate structures or other agreements, ensuring utilities and existing ratepayers are not left paying for infrastructure if a customer later scales back operations or leaves the system.
Additionally, H.R. 9340 would require financial assurances that large-load customers will pay for the generation, transmission, and other infrastructure necessary to serve their demand, preventing those costs from being shifted onto families and local businesses through higher electricity rates, the summary says.
The bill now heads to the full U.S. House of Representatives for consideration.
“I’m proud to see the swift advancement of the Ratepayer Protection Act through committee, and I look forward to its final passage in the House,” said Rep. Evans.