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House Passes Bill Urging States to Make Data Centers Pay Grid Costs

Senators are debating whether Congress should impose mandatory rules or leave decisions to state regulators.

Overview

  • The House approved the Ratepayer Protection Act by a 417-3 vote, a bipartisan measure that asks state utility regulators to consider making very large data centers shoulder the incremental costs of new power infrastructure, a step that won wide support on Friday.
  • A Senate effort to fast-track the House bill was blocked when Senator Martin Heinrich objected to unanimous consent, saying the measure is too weak and promoting his own GRID Savings Act that would require big users to pay connection and upgrade costs.
  • President Donald Trump told reporters he is discussing the bill with Senate Majority Leader John Thune, raising the possibility that Senate leaders may try to bring the measure back to the floor.
  • States and grid operators are already taking action on their own: New York has imposed a one-year moratorium and issued guidance suggesting communities negotiate payments of roughly $1 million per megawatt, and regions such as PJM are adjusting interconnection rules and tariffs.
  • Analysts say the federal bill is largely advisory and may change little in practice because many states including Virginia, Texas and Ohio are moving to make data centers pay for grid upgrades while data-center growth has driven notable electricity demand and higher household bills.