WASHINGTON: The Ratepayer Protection Act passed the U.S. House 417-3 on Wednesday, advancing a bipartisan effort to limit electricity costs that large data centres could shift onto existing customers.
The bill would require state public utility commissions to consider standards for large electricity users. Those standards would apply to facilities or campuses with peak demand of at least 100 megawatts.
Under the Ratepayer Protection Act, regulators could require large-load customers to cover the full incremental cost of serving their electricity demand.
Those costs could include new power generation, transmission and distribution upgrades. The bill would also allow regulators to require financial assurances before utilities begin major infrastructure work.
However, the measure does not impose one national electricity rate on data centres. Instead, it uses existing federal utility law to require states to consider their own large-load standards.
Supporters say that approach preserves state authority while protecting households and small businesses from infrastructure costs linked to new data centres.
Republican Rep. Gabe Evans of Colorado and Democratic Rep. Kathy Castor of Florida introduced the bipartisan measure.
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The House Energy and Commerce Committee previously advanced it without opposition. The House vote comes as lawmakers examine the electricity demand created by rapid AI infrastructure expansion.
Data centres have become a focus because some facilities can require power on a scale comparable to small cities. Meanwhile, utilities and regulators are developing new tariffs and connection rules for large customers.
At least 24 states already have or are developing protections related to large electricity loads, according to the House Energy and Commerce Committee.
The legislation has sparked broader political debate over AI expansion. President Donald Trump has emphasised rapid U.S.
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AI development and competition with China, while lawmakers from both parties have raised concerns about electricity bills and grid capacity. Still, the House measure addresses utility-cost allocation rather than restricting AI model development itself.
Its central requirement is for state regulators to consider whether large data centres should bear the additional infrastructure costs associated with their power demand. The Ratepayer Protection Act now requires Senate consideration before it could reach the president.
