WASHINGTON, D.C. — The House Energy and Commerce Committee's energy subpanel is scheduled to debate and vote on the Ratepayer Protection Act on Wednesday. The bill would require state utilities to consider creating a "large load standard."

This standard would mandate that data center builders cover the costs of upgrades to the electrical grid necessary to power their facilities. The legislation is sponsored by Representative Gabe Evans, a Republican from Colorado, and Representative Kathy Castor, a Democrat from Florida.

The bill aims to ensure tech companies building data centers pay for new power generation, transmission lines, and other grid-related improvements for large-load customers. The legislation would codify elements of the White House's "Ratepayer Protection Pledge." Amazon, Google, Meta, Microsoft, and SpaceX's xAI are among the primary builders and operators of data centers.

House Energy and Commerce Chair Brett Guthrie said the legislation is intended to align grid upgrade costs with demand. "The Ratepayer Protection Act is a bipartisan effort, which would ensure that the costs of grid upgrades are appropriately paid for according to demand," Guthrie said. "Families and small businesses across the country shouldn't be left to foot the bill for this new development, though the benefits of these innovations will be felt by all of society."

Evans said residents, farmers, and small businesses in his state should not bear the expense of new power generation driven by data center growth. "Colorado families, farmers, and small businesses should not be forced to cover the costs of new power generation driven by these developments," Evans said.

Castor said the measure protects consumers from absorbing these costs. "The bill safeguards consumers by ensuring these data centers pay for the energy and grid upgrades they need so hardworking families and local businesses are not stuck paying more," Castor said.

A number of large tech companies signed a previous pledge indicating they do not oppose paying for the new electricity production needed for artificial intelligence. Alphabet, Amazon, Meta Platforms, and Microsoft anticipate spending up to $720 billion this year, primarily on AI data centers. Before reaching the President's desk, the bill would require approval from the full Energy and Commerce Committee, the House, and the Senate.