U.S. Rep. Kathy Castor Introduces Bipartisan Bill Protecting Americans from Paying for Data Center Development

WASHINGTON, D.C. - Congresswoman Kathy Castor (FL-14) and Gabe Evans (CO-08) introduced the bipartisan Ratepayer Protection Act to protect American families from the costs of energy and grid upgrades required for new data centers, while advancing American innovation in industries like artificial intelligence.

The Ratepayer Protection Act requires state utility regulators to establish rules to ensure that community members do not pay for the costs of building new power generation, transmission lines, and other upgrades to serve large-load customers, such as data centers. Without proper safeguards, families and small businesses in communities where data center development occurs could see higher electricity bills at the end of every month.

At a time when Americans are increasingly struggling with rising energy costs and an aging electric grid, the Ratepayer Protection Act ensures that major technology companies that have committed to covering the full energy and infrastructure costs associated with new data center development are held accountable for their promises. As states consider new data center development, this bill provides states with responsible solutions to ensure that community members can benefit from those investments.

"My neighbors across Florida are grappling with skyrocketing electric bills. Ratepayers should not have to subsidize wealthy corporations' growing energy demands, especially from AI data centers," said Rep. Castor. "The Ratepayer Protection Act safeguards consumers by ensuring these data centers pay for the energy and grid upgrades they need so hardworking families and local businesses are not stuck paying more."

"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," said Rep. Evans. "But Colorado families, farmers, and small businesses should not be forced to cover the costs of new power generation driven by these developments. The Ratepayer Protection Act is a bipartisan, commonsense solution that protects everyday Americans and ensures our nation can continue to win the AI race."

The Ratepayer Protection Act builds on Rep. Castor's leadership on the Stopping Hikes In Electricity from large Load Demands (SHIELD) Act, which she introduced with Rep. Mike Levin (CA-49) in January.

Background

If enacted, the legislation would propose standards that state regulators could enforce when considering the integration of new large-load customers with a demand of 100 megawatts or more onto the grid. Those recommendations include:

• 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. This protects utilities and their ratepayers from being left responsible for upgrade costs associated with a large-load customer, even if that customer later reduces operations or leaves the system entirely.
• Financial assurances require the large load customer to pay for any generation, transmission, or other infrastructure necessary to serve their load, protecting utilities and ratepayers from that financial burden. This ensures large-load customers are responsible for the fixed costs associated with serving their demand rather than passing those costs on to families and businesses through higher monthly electricity bills.