U.S. Senate Energy and Natural Resources Ranking Member introduces legislation to protect ratepayers from costs of data center expansion
Author
Charlotte Mitchell Duyshart
Andrew Nober
Upcoming Events
Related News
Key Takeaways
On August 3, Senate Energy and Natural Resources Committee Ranking Member Sen. Martin Heinrich (D-N.M.) introduced the Guarding Ratepayers from Increased Demand-costs (GRID) Savings Act of 2026 (S. 5199). The proposed legislation would create a process for large electricity users to pay for any infrastructure costs associated with increased demand for the electric grid.
The bill comes as federal lawmakers and agencies are considering frameworks to deal with increasing electricity demand driven partly by data centers. Although electricity market regulation is a federal and state responsibility, counties play a role in electricity infrastructure and facility siting.
GRID Savings Act proposals
The GRID Savings Act would give the Federal Energy Regulatory Commission (FERC) rulemaking jurisdiction over large load customers, defined as facilities demanding more than 150 megawatts (MW) of electricity. In June, FERC issued show cause orders to grid operators requiring them to create or justify rules for large load interconnections but has not yet issued a final rulemaking. The GRID Savings Act would require FERC to promulgate a national rule governing the large load interconnection process.
The GRID Savings Act would also assign any costs associated with connecting large loads to the customer rather than being passed onto to ratepayers. Large load interconnections can require the construction of new transmission and distribution infrastructure, which is typically borne by ratepayers. The GRID Savings Act would shift that cost to the customer facility and require guarantees of payment even if the facility closes.
It also allows data centers and other large load customers to voluntarily pay for the construction of new transmission infrastructure in exchange for access to a grid interconnection.
County Impacts
Although counties do not directly regulate electricity markets, they play a role in siting both transmission infrastructure and customer facilities. NACo encourages counties to contact their state utility regulator to discuss how changing grid rules could impact electricity prices and the county role in infrastructure siting.
Other frameworks, such as the Ratepayer Protection Act (H.R. 9340) and President Trump’s Ratepayer Protection Pledge, have proposed similar reforms to accommodate increasing electricity demand growth from large load customers.
Related News
The "Backslash Backlash:" Counties pivot in the data center buildout
Data center development across the country has put a new focus on county policies, how they regulate land use and more for local residents and how they could shape the path for economic growth built around artificial intelligence and information technology.
Chips, Compute and Counties
NACo CEO Matt Chase: "The fundamentals remain the same [when it comes to data centers]: demand a seat at the table, study the supply chain, understand the financing capital stacks, ask hard questions and fight for a deal that leaves your community better off — not used and abused."
Water matters for data centers
Data centers often cluster in a few places, need treated water and use the most when demand is already high in hot weather. This growing demand is driving data center development nationwide, accelerating local proposals and the importance for county officials to understand impacts to energy, land and water resources.
Advocacy
FERC orders regional grid operators to reform rules for large load grid connections
FERC orders regional grid operators to reform rules for large load grid connections