Technology companies that propose to build data centers to provide the computing power for artificial intelligence would have to pay any costs to upgrade local power grids under a bill that took a step forward in the House on Wednesday
The Ratepayer Protection Act, H.R. 9340, would authorize states to charge companies building data centers the full cost of new power generation to support the electricity-gobbling centers and transmission upgrades.
The Subcommittee on Energy, a panel that is part of the House Energy and Commerce Committee, moved the bill, which had bipartisan support, forward. The full committee will now consider it.
Rep. Gabe Evans, a Republican from Colorado and a sponsor of the bill, said it “rests on three common-sense principles,” according to a subcommittee news release.
“First, large-load customers should cover the full incremental cost of any generation, transmission, or distribution upgrades needed to serve their load. If a data center needs a new high-voltage line or a new generating station to meet that load, they are responsible for those costs — not businesses or families,” he said.
“Second, contracts should include meaningful financial assurances, upfront and long-term, to make sure that these large-load entities have the money to pay for this built-out infrastructure. Communities should not be left paying for infrastructure built by a single customer who later scales back or relocates,” he continued.
“Third, this bill has flexibility. It says the what, but it leaves the how to the states. It does not impose a federal mandatory standard. Instead, it provides a thoughtful requirement for states to consider how they connect these large loads,” he said.
“States know their grids and their industries, and all of these stakeholders need to engage together with their local utilities, counties, and local governments to decide what approach is best for them,” he said.
“Families and small businesses across the country shouldn’t be left to foot the bill for this new development, though the benefits of these innovations will be felt by all of society,” House Energy and Commerce Chair Rep. Brett Guthrie, a Republican from Kentucky, said, according to CNBC.
“The Ratepayer Protection Act is a bipartisan effort, which would ensure that the costs of grid upgrades are appropriately paid for according to demand,” he added.
The bill still has a long journey ahead of it, requiring the approval of the full Energy and Commerce Committee, the House, and the Senate before going to the desk of President Donald Trump.
A recent Gallup poll found that only 7 percent of respondents support having data centers in their areas, while 48 percent strongly oppose them.
The poll found that impact on resources was the prime reason for opposition.
100%.
Data centers cannot expect to keep moving into West Texas and drain communities of resources we don’t have. We have to be smarter about this.
— Brandon Herrera (@TheAKGuy) June 23, 2026
Rep. Kathy Castor, a Democrat from Florida, is co-sponsoring the measure with Evans.
Castor said the bill reflects the “populist anger” lawmakers are hearing.
“It’s been a wake-up call for them,” Castor said, according to Politico.
“The public is up in arms. It doesn’t matter how people are registered at home, Republican, Democrat, Independent, they are very skeptical, and they’re very wary of paying any more for electricity,” she said.
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