U.S. House passes bill on data center utility costs

House approves proposal

The U.S. House passed the Ratepayer Protection Act on Sept. 16, 2026, with near-unanimous support. Representatives Gabe Evans, a Colorado Republican, and Kathy Castor, a Florida Democrat, introduced the bipartisan measure as concerns grow about the effect of large data centers on local electricity systems and utility rates.

The proposal follows action by states including Oklahoma to limit the effect of data center development on other utility customers. It would amend the Public Utility Regulatory Policies Act of 1978 and establish a federal standard for facilities classified as large-load customers.

Under the bill, that term would cover a nonresidential facility with peak electricity demand of at least 100 megawatts at one site.

What the bill would require

State public utility commissions would have one year to begin considering the proposed standard and two years to decide whether to adopt it.

The standard would make a large-load customer responsible for the full additional cost of generation, transmission or distribution upgrades needed to serve that facility. That responsibility would continue if the customer ended its utility contract or stopped buying electricity from the utility.

Utilities also would require financial assurances or contributions from large-load customers before making necessary upgrades. Those provisions are intended to prevent the upgrade costs from being shifted to households and small businesses.

The measure directs state commissions to consider the standard and make an adoption decision; it does not directly set each state’s utility rates.

Next steps

House passage alone does not make H.R. 9340 law. The measure would also need Senate approval and the president’s signature before its deadlines for state utility commissions could take effect.