Ratepayer Protection Act Passes House with Strong Bipartisan Support
WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, Congressman Bob Latta (OH-05), Chairman of the Energy and Commerce Subcommittee on Energy, and Congressman Gabe Evans (CO-08), applauded House passage of H.R. 9340, the Ratepayer Protection Act, by a vote of 417 to 3. The legislation would require state public utility commissions to consider a strategy to make data centers pay their own way, instead of passing costs onto American consumers.
“When done responsibly, data center development leads to longer term investments and broader infrastructure improvements in the communities where they’re built. The Ratepayer Protection Act helps to safeguard these benefits by ensuring that the companies who are building data centers—and not American families and small businesses—are paying for the electricity they use,” said Chairman Guthrie. “U.S. leadership in the race to AI dominance is critical to our economic prosperity and national security, so we need to keep building the needed infrastructure with appropriate accountability measures. I'm grateful to Congressman Evans for his tireless work—on a bipartisan basis—to protect ratepayers while ensuring that America continues to lead the world in innovation.”
“I am proud to vote for the bipartisan Ratepayer Protection Act, led by Representative Gabe Evans, which will protect ratepayers from increased electricity costs caused by data centers. Across the country, communities are seeing proposals for new data centers that will bring jobs, investment and new technological capabilities, but also raise important questions about how these facilities will affect local electric grids and the nearby communities,” said Chairman Latta. “One question should have a clear answer: American families should not have to pay higher electricity bills so large technology companies can build and operate data centers. I urge the Senate to swiftly consider this legislation and send it to the President’s desk.”
“Hardworking families should not have to subsidize the energy demands of data centers. America needs the infrastructure to lead the world in AI and outcompete Communist China, but we cannot have that growth at the expense of hardworking families, farmers, seniors, and small businesses,” said Congressman Evans. “My bipartisan Ratepayer Protection Act ensures large data centers pay for the infrastructure they require while giving states the flexibility to determine what works best for their communities. I’m incredibly proud to lead the charge on this pivotal issue, ensure our ratepayers are protected, and keep American innovation moving forward.”
BACKGROUND:
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H.R. 9340 would protect consumers from rate increases resulting from data center construction by having state utility commissions consider large-load standards for data centers drawing more than 100 MW of power, which would ensure they pay for the full incremental costs to serve their loads.
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By drawing on existing Public Utility Regulatory Policies Act authorities (Sec. 111(d)), this light touch approach provides a federal recommendation while preserving state power to regulate electricity markets, drawing on what 24 states are already doing to protect residential homes and small businesses.
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By establishing large-load standards, states can ensure that American families are not left footing the bill for AI data center growth, while still encouraging industry growth.
