Bill would make data centers and factories pay for their own grid upgrades

What does this do?

HR 9340, the "Ratepayer Protection Act," would require electric utilities to charge "large-load customers"—those using 100 megawatts or more at one site—the full cost of any new power plants, transmission lines, or upgrades needed to serve them. Utilities would have to collect financial guarantees or upfront payments before building, and customers would still owe those costs even if they cancel their contract later. It amends federal law to set this as a standard for state regulators and utilities to formally consider, with a one-year deadline to start review and two years to finish, though states that already addressed the issue would be exempt from those deadlines.

Who does it affect?

Large industrial and commercial electricity users like data centers, factories, and crypto-mining operations, along with electric utilities and state utility regulators, are directly affected. Households and small businesses could be affected indirectly.

Why does it matter?

The bill is meant to keep the costs of building infrastructure for massive power users from being spread across all ratepayers through higher bills.

What does it cost, and who pays?

• Big users pay full upgrade cost
• Must post guarantees upfront
• Still owe costs if contract ends