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House Passes Ratepayer Protection Act for Data Centers

By Drooid · Sep 17, 2026, 2:41 PM UTC · How we work

Summary

House Passes Ratepayer Act

The U.S. House passed the Ratepayer Protection Act requiring data centers to pay full grid-upgrade costs.
The measure cleared by a 417-to-3 vote, with only three Democrats voting no.
Rep. Gabe Evans (R-CO) and Rep. Kathy Castor (D-FL) sponsored the bill.
State utility commissions must hold hearings within one year and decide adoption within two years.
The act defines large-load customers as facilities drawing at least 100 MW of power.

Summary

Cities Impose Data Moratoriums

Gilroy City Council unanimously approved a 45-day moratorium on new data centers, effective immediately.
Elgin City Council approved a one-year data-center moratorium with a unanimous 9-0 vote.
New Morgan Borough Council rezoned Route 10 to industrial and created a data-center overlay district.
Southport aldermen unanimously voted for a 15-month moratorium while drafting data-center zoning rules.
Woodburn City Council imposed a 120-day moratorium, warning of possible water-system overload.

History

Historical Context

In 1996 Governor Pete Wilson signed AB 1890, deregulating California’s electricity market and creating a spot market by 1998. Summer 2000 saw wholesale prices rise roughly 800 % and a 3,900 MW bottleneck on Path 15, prompting rolling blackouts that forced PG&E into bankruptcy in April 2001. The fallout led Governor Arnold Schwarzenegger in 2003 to champion new transmission lines and stricter demand-response rules.

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House Passes Ratepayer Act

The U.S. House passed the Ratepayer Protection Act requiring data centers to pay full grid-upgrade costs.
The measure cleared by a 417-to-3 vote, with only three Democrats voting no.
Rep. Gabe Evans (R-CO) and Rep. Kathy Castor (D-FL) sponsored the bill.
State utility commissions must hold hearings within one year and decide adoption within two years.
The act defines large-load customers as facilities drawing at least 100 MW of power.

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