Ratepayer Protection Act Advances from House Committee on Energy and Commerce

WASHINGTON, D.C. - Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, Congressman Bob Latta (OH-05), Chairman of the Energy and Commerce Subcommittee on Energy, and Congressman Gabe Evans (CO-08), applauded the Committee's passage of H.R. 9340, the Ratepayer Protection Act, by a vote of 52-0. The legislation would require state public utility commissions to consider a strategy to make data centers pay their own way, instead of passing costs onto American consumers.

"We have met with numerous stakeholders, including the data center industry and big tech, state regulators, utilities, and others," said Chairman Guthrie. "But it has become clear that across the entire industry there is one entity uniquely positioned to stand up for families and communities who are the ones paying electricity bills-and that is this Committee, and our colleagues in Congress. The Ratepayer Protection Act will ensure that data centers pay their own way, instead of passing costs onto hardworking families. Thank you to Congressman Gabe Evans for leading this vital legislation that will protect Americans from rising electricity costs while ensuring the United States is positioned to win the race for AI dominance."

"This legislation protects American ratepayers from being forced to cover the cost of energy infrastructure upgrades needed to support data centers," said Chairman Latta. "I was proud to support this bipartisan legislation as we continue to strengthen America's leadership in the AI race against Communist China while ensuring hardworking families and local communities aren't left footing the bill. Numerous states already have large load tariffs in place for data centers, including Ohio. I urge the House to bring the Ratepayer Protection Act to the floor as soon as possible so we can get this commonsense legislation across the finish line."

"America must build the energy infrastructure necessary to win the global AI race and outcompete adversaries like Communist China-but hardworking families should never be forced to subsidize that growth through higher electric bills," said Rep. Evans.** "This bipartisan commonsense legislation ensures the companies creating new demand for electricity pay for the infrastructure they require-not Colorado families, farmers, seniors, and small businesses. I'm proud to see the swift advancement of the Ratepayer Protection Act through committee, and I look forward to its final passage in the House."

BACKGROUND:

This legislation would amend Section 111(d) of the Public Utility Regulatory Policies Act (PURPA) to require each state regulatory authority to consider establishing a large-load standard to provide that a rate charged, or related agreement entered into, by an electric utility for providing electric service to a large-load customer shall recover the full, incremental cost of any generation, transmission, or distribution upgrade necessary to serve the load of such customer and to provide for financial assurances to cover such upgrades.

The legislation would define large-load customers as non-residential electric consumers requesting electric energy for one or more facilities at a site or campus with peak demand of 100 megawatts or more.