Ratepayer Protection Act

Key Points

• The bill targets huge data centers and similar facilities that need at least 100 megawatts of electricity at one site, roughly enough to power tens of thousands of homes.
• It requires utilities to design rates so these large facilities pay the full incremental cost of any power plant, transmission line, or distribution upgrade built to serve them, even if the facility later leaves.
• Utilities must collect financial guarantees or upfront payments from these big customers before building the new infrastructure, so regular customers are not left covering the cost if the facility backs out.
• State regulators have one year to start reviewing this new standard and two years to make a final decision on adopting it, unless their state has already acted on a similar rule.
• States that already implemented a similar standard, held a proceeding on it, or had their legislature vote on it before the bill becomes law are exempt from these new deadlines.

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