Kelly backs Ratepayer Protection Act, calls for data center companies to pay for their own electricity

WASHINGTON, D.C. -- On Wednesday, U.S. Rep. Mike Kelly (R-PA) voted in favor of the Ratepayer Protection Act, legislation which codifies a Trump administration executive action requiring that the companies building data centers are the ones paying for the electricity needed to power them, instead of hardworking American families.

"Pennsylvania families shouldn't be footing the bill to power data centers," said Rep. Kelly. "This legislation puts local families first and reestablishes commonsense energy policy in the United States."

BACKGROUND

U.S. leadership in the race to artificial intelligence (AI) dominance is critical to our economic and national security, but right now states and communities are concerned about the pace at which AI data centers are being developed and the effect they could have on residents’ electric bills.

The growth in data center development is coinciding with the exposure of systemic challenges to deploying reliable and affordable electricity resulting from harmful Biden-era policies, namely the premature retirement of baseload power and the overreliance on intermittent sources, like wind and solar.

Without fail, blue states that have led the charge to shut down fossil power plants and mandate renewable generation quotas are now home to the highest electricity rates in the country. A dual-pronged approach would ensure that facilities such as data centers pay their costs, alongside broader electricity policy reforms that prioritize reliable baseload power.

The Ratepayer Protection Act:

• H.R. 9340 would protect consumers from rate increases resulting from data center construction by having state utility commissions consider large-load standards for data centers drawing more than 100 MW of power, which would ensure they pay for the full incremental costs to serve their loads.
• By drawing on existing Public Utility Regulatory Policies Act authorities (Sec. 111(d)), this light touch approach provides a federal recommendation while preserving state power to regulate electricity markets, drawing on what 24 states are already doing to protect residential homes and small businesses.
• By establishing large-load standards, states can ensure that American families are not left footing the bill for AI data center growth.

Learn more about the Ratepayer Protection Act here.