Press Releases

Trahan Votes to Protect Ratepayers from Data Center Price Hikes

Today, Congresswoman Lori Trahan (MA-03), a member of the House Energy and Commerce Committee, voted to pass the bipartisan Ratepayer Protection Act, legislation that gives state utility regulators clear standards to make sure large-load customers, including new data centers or information storage facilities, pay for the infrastructure they need. It requires companies to cover the full cost of any additional grid upgrades over time and provide financial guarantees, protecting ratepayers if a data center scales back its operations or shuts down entirely. Trahan also helped pass the legislation when it was considered in the Energy and Commerce Committee in July. 

“Families are being squeezed by rising costs across the board. The last thing they need is a data center driving up their utility bills and making it even harder to make ends meet,” said Congresswoman Trahan. “The Ratepayer Protection Act says that if you build a data center, you pay for the data center, including the infrastructure and utility costs that too often get passed onto residents. Communities across the country have made it clear they aren’t going to tolerate these facilities driving up their utility costs and impacting their quality of life. Congress should build on this progress by codifying Governor Healey’s effort to ensure communities have a real say in if and when these facilities.”

Large scale data centers or information storage facilities that use 100 megawatts or more require extensive cooling systems that are necessary to keep servers from overheating. These cooling systems can account for as much as 40% of a data center's total electricity use. These data centers can use even more electricity during summer months or during heat waves where electric grids are already under strain and electricity is under more demand. Recent studies examining the impact of growing data center demand found that wholesale electricity prices increased by 6% to 29% on average nationwide, with increases of up to 57% in the regions most affected, compared with projected prices without that growth in demand.

“Right now, families across our country are afraid to open up their electric bills. The number keeps climbing, and their paycheck isn't keeping pace. They're doing the math at the kitchen table, wondering what they might have to cut next just to keep the lights on. That fear is real, and too many families have stopped believing that anyone in Washington is listening,” Congresswoman Trahan said when the bill was marked up in the Energy and Commerce Committee in July. 

The Ratepayer Protection Act now moves to the Senate for consideration.

###