Colorado congressman's bill would require AI companies to pay for electric infrastructure expansion near data centers
Colorado Representative Gabe Evans has introduced the "Ratepayer Protection Act," a bipartisan bill aimed at making AI companies and other large-load electricity customers pay for electric infrastructure upgrades needed for new data centers. The bill, which passed a key House committee unanimously, seeks to prevent these costs from burdening communities and existing ratepayers. It is now awaiting a vote in the U.S. House of Representatives.
Representative Gabe Evans (R-CO) has spearheaded the "Ratepayer Protection Act," a bipartisan bill designed to compel AI companies and other high-demand electricity customers to finance the necessary electrical infrastructure upgrades for new data centers. The legislation aims to safeguard communities and existing utility ratepayers from incurring these substantial costs. Having passed the House Energy and Commerce Committee with a unanimous 52-0 vote in July, the bill is now slated for a full vote in the U.S. House of Representatives this week.
The proposed act would institute federal standards for state utility regulators to consider when new customers with electricity demands of 100 megawatts or more connect to the grid. It mandates financial assurances from these companies to cover costs related to generation, transmission, and other infrastructure, thereby preventing financial burdens on communities if a data center reduces operations or disconnects. Evans cited a new data center approved in Weld County, Colorado, operated by OpenAI, as an example of the kind of development his bill seeks to regulate, emphasizing the need for federal guardrails to prevent higher electric bills for residents.
With 41 House cosponsors, the bill is anticipated to receive overwhelming bipartisan support in the House. Should it pass, it will proceed to the Senate, where a considerable legislative backlog currently exists. This initiative underscores the growing concern over the substantial electricity consumption of data centers and their impact on local infrastructure and utility costs.