U.S. Rep. Gabe Evans’ (R-CO) bill that aims to ensure families and small businesses in communities where data center development occurs are protected against higher electricity bills was advanced by the House Energy and Commerce Subcommittee on Energy on June 24.
“As America races to lead the world in AI, we must build the energy infrastructure needed to support this innovation, and stay ahead of competitors like Communist China,” Rep. Evans said. “But Colorado families, farmers, and small businesses should not be forced to cover the costs of new power generation driven by these developments.”
Rep. Evans sponsored the bipartisan Ratepayer Protection Act, H.R. 9340, alongside lead cosponsor U.S. Rep. Kathy Castor (D-FL) to propose standards that state regulators could enforce when considering integrating new large-load customers with a demand of 100 megawatts or more onto the grid.
The recommendations include the recovery of the full, incremental cost of upgrades by the large-load customer over a long period of time through a special rate charge or other agreements, as well as financial assurances requiring the large-load customer to pay for any generation, transmission, or other infrastructure necessary to serve their load.
The proposed standards would seek to ensure other community members do not pay for the related costs of building new power generation, transmission lines, and other upgrades large-load customers need, according to a bill summary provided by Rep. Evans’ staff.
“The Ratepayer Protection Act is a bipartisan, common-sense solution that protects everyday Americans and ensures our nation can continue to win the AI race,” said the congressman.
Additionally, the bill would codify the principles behind the Ratepayer Protection Pledge, under which major technology companies committed to covering the full energy and infrastructure costs associated with new data center development, the summary says.
“The Ratepayer Protection Act safeguards consumers by ensuring these data centers pay for the energy and grid upgrades they need so hard-working families and local businesses are not stuck paying more,” said Rep. Castor.
The measure was advanced during a June 24 markup by the Subcommittee on Energy, which is chaired by U.S. Rep. Bob Latta (R-OH).
“I am supportive of the Ratepayer Protection Act,” Rep. Latta said. “This legislation would create a baseline standard so that Americans are protected from large rate increases due to data centers and other large-load operations. I thank my colleague, Rep. Gabe Evans, for leading this timely legislation.”