House Passes Bill to Shield Ratepayers from AI Data Center Power Costs
The House passed the bipartisan Ratepayer Protection Act to curb AI data center power cost impacts.
Why it matters: This legislation marks a significant federal effort to prevent rising electricity bills caused by growing AI infrastructure demands, protecting consumers and small businesses from subsidizing large data centers.
- The House passed the Ratepayer Protection Act with a 417 to 3 vote on September 16, 2026.
- Introduced by Reps. Gabe Evans (R-CO) and Kathy Castor (D-FL), the bill targets large data centers consuming 100 megawatts or more.
- It requires state utility regulators to ensure these large-load customers pay for the full cost of grid upgrades.
- The bill amends the Public Utility Regulatory Policies Act of 1978 to set a federal standard for utility cost recovery from large-load customers.
On September 16, 2026, the U.S. House of Representatives overwhelmingly passed the Ratepayer Protection Act with a 417 to 3 vote. This bipartisan legislation addresses rising electricity bills tied to the growing power demands of AI data centers.
The bill was introduced in June 2026 by Representatives Gabe Evans (R-CO) and Kathy Castor (D-FL). It specifically targets large-load customers—defined as non-residential consumers with a combined peak electric demand of at least 100 megawatts at a single site or campus—effectively covering major AI data centers.
Under the bill, state utility regulators must consider implementing standards that require these data centers to bear the full cost of any grid upgrades necessary to support their substantial energy consumption. This measure amends the Public Utility Regulatory Policies Act of 1978 by adding a federal standard on how utilities recover these costs.
House Energy and Commerce Committee Chairman Rep. Brett Guthrie (R-KY) underscored the law’s intent: "The Ratepayer Protection Act helps to safeguard these benefits by ensuring that the companies who are building data centers—and not American families and small businesses—are paying for the electricity they use." Similarly, Rep. Bob Latta (R-OH) added, "American families should not have to pay higher electricity bills so large technology companies can build and operate data centers."
Rep. Gabe Evans, the bill's sponsor, emphasized the balance needed between infrastructure growth and protecting ratepayers: "We cannot have that growth at the expense of hardworking families, farmers, seniors, and small businesses."
With the bill’s passage in the House, it now moves to the Senate. The future of the legislation there remains uncertain.
By the numbers:
- 417 to 3 — House vote count on Ratepayer Protection Act
- 100 megawatts — Peak electric demand threshold defining large-load customers
- 52 to 0 — House Energy and Commerce Committee vote to report the bill on July 21, 2026
Yes, but: The legislation does not detail how state utility regulators will implement standards, and its impact on AI data center development remains unclear.
What's next: The bill awaits consideration in the Senate, where its prospects are uncertain.