THE CRUNCH
The U.S. House of Representatives has passed the Ratepayer Protection Act, which would require data centres with a capacity of 100 megawatts or more to pay for any generation, transmission, or distribution upgrades needed to serve their load. The bill amends the Public Utility Regulatory Policies Act of 1978 and directs states to consider adopting the federal standard within two years of its passage. If signed into a
The legislation follows President Donald Trump’s Ratepayer Protection Pledge and aims to address the surge in electricity demand from AI data centres, which has led to price hikes for residential users. States have two years to decide whether to adopt the federal standard, and the bill still faces a vote in the Senate before reaching the President's desk.
The move comes as several states, including Oregon and Virginia, have already implemented stricter rules. Oregon’s POWER Act, which requires developments over 20 megawatts to pay their fair share, has reportedly reduced residential power costs by 1.3% while increasing data centre bills by 30%. Virginia has also required data centres to pay for transmission infrastructure following its governor’s pledge.