Ratepayer Protection Act

Term Dictionary

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The gist

Forces data centers using 100+ megawatts to pay the full cost of power grid upgrades needed to serve them, protecting regular ratepayers from those charges.

Who wins, who loses

  • Wins: residential electricity customers, small businesses, state utility regulators worried about rising bills.
  • Loses: hyperscale data center operators like Amazon, Google, Microsoft, Meta, and AI companies expanding compute capacity.

What it does

  • Amends the Public Utility Regulatory Policies Act (PURPA) of 1978 to add a new federal standard.
  • Defines 'large-load customer' as data-center facilities drawing 100+ megawatts at one site.
  • Requires upfront financial assurances before utilities build generation, transmission, or distribution upgrades.
  • Gives state regulators 1 year to start and 2 years to finish reviewing the standard.

Why should I care?

Data centers powering AI and streaming are exploding in size, and utilities pass upgrade costs onto everyone's bill. Supporters say households shouldn't subsidize tech giants' power needs. Critics argue extra costs could slow US artificial intelligence growth and push data centers overseas. Where do you land? Vote below and use "Tell Your Rep" to make sure your voice reaches Congress.

What do you think about this bill?

Vote to see who sponsored it!

Bill ID: hr9340-119
Congress Session: 119
Date Processed: 2026-09-29 08:58:11 (UTC)
Introduced: 2026-06-18
Status: Passed House