Ratepayer Protection Act

Key Points

• The bill targets "large-load customers" defined as non-residential electricity consumers that need 100 megawatts or more at a single site or campus. This mainly covers massive data centers, AI facilities, and large industrial operations.
• These huge electricity users would have to pay the full cost of any new power plants, power lines, or distribution equipment needed to serve them, instead of sharing those costs with regular customers on their monthly bills.
• Large-load customers must also provide financial guarantees or upfront payments before a utility begins building the infrastructure upgrades they need. This protects utilities and other ratepayers from being stuck with costs if a big customer leaves.
• Even if a large-load customer breaks their contract or stops buying electricity, they are still on the hook for the full cost of upgrades that were built to serve them.
• State regulators must begin reviewing this new standard within one year of enactment and complete their decision within two years. States that already have similar rules in place would be exempt from this requirement.