Fedorchak presses for fair cost allocation, highlights grid solutions at Energy Subcommittee hearing

Washington, D.C. - At today's Energy and Commerce Subcommittee on Energy hearingtitled, "AI and the Grid: Meeting Growing Power Demand While Protecting Ratepayers," Congresswoman Julie Fedorchak (R-ND) emphasized a clear principle: those who drive the need for new energy infrastructure should pay for it. Americans should not be burdened with costs from energy infrastructure they do not cause, both from state policy decisions orcommercial loads.

During her questioning, Fedorchak highlighted two of her bills under consideration-H.R. 6336, the Fair Allocation of Interstate Rates (FAIR) Act, and H.R. 6633, the High-Capacity Grid Act-as solutions to ensure the nation can meet growing electricity demand without unfairly shifting costs onto ratepayers.

Fedorchak asked witnesses a simple question: is it fair for Americans to pay for infrastructure upgrades driven by large energy users? Every witness answered, "no." She then followed up, asking whether large loads-such as data centers-have shown a willingness to pay for the upgrades needed to meet their demand. Every witness agreed that they have. Fedorchak emphasized that new load does not have to mean higher costs, outlining how North Dakota is carefully rates for large users to ensure they cover the costs they create-helping drive down costs for other electricity customers rather than increase them.

Fedorchak asked Nelson Peeler, Senior VP of Grid Strategy, Planning and Integration at Duke Energy, how effective rates for large loads customers can lead to decreased costs for retail consumers. He stated, "essentially those large users of energy pay more of the fixed costs of the total system and therefore it reduces costs left for the remaining customer classes such as residential and commercial."

Fedorchak continued by pressing witnesses on whether it is fair for states to shift the costs of their own energy mandates onto ratepayers in other states. Again, the answer was clear: it is not. She underscored that Americans should not be burdened with costs from policies or infrastructure they did not choose or do not benefit from-reinforcing the need for a more transparent and equitable approach to cost allocation.

These principles are central to Fedorchak's legislation. Her Fair Allocation of Interstate Rates Act ensures that states are responsible for the costs of their own energy decisions, preventing those costs from being exported to families and businesses in other parts of the country. As outlined by the below chart, transmission costs are far outpacing generation costs.