U.S. Senate Energy and Natural Resources Ranking Member introduces legislation to protect ratepayers from costs of data center expansion

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.