House Approves Measure to Shift Data Center Grid Costs Away from Ratepayers

The House voted 417-3 to pass legislation that would encourage states to adopt federal guidelines ensuring large industrial power users like data centers pay for their own grid upgrades, rather than shifting costs to residential customers. The bill, introduced by Rep. Gabe Evans and Rep. Kathy Castor, both facing competitive re-election fights, amends a 1978 energy law and now heads to the Senate, where Majority Leader John Thune suggested it could pass before the November elections. Three Democrats opposed the measure, and Senate Democrats have noted it lacks enforcement mechanisms to guarantee consumer protections.

The measure amends the 1978 Public Utility Regulatory Policies Act, born from 1970s energy crises. It only requires states to *consider* federal standards, not adopt them. An amendment narrowed the definition of "large-load customer" to facilities primarily operating IT infrastructure for data storage. The bill passed under suspension, needing two-thirds support, and got unanimous committee approval in June.

Senate Majority Leader Thune said the bill might clear the Senate before November, likely via unanimous consent. However, Senate Energy ranking member Martin Heinrich argued the lack of enforcement means it won't address rising costs, and he has proposed separate legislation requiring hyperscalers to finance grid upgrades. The bill also codifies parts of the White House's voluntary "Ratepayer Protection Pledge," signed by over 300 utilities.