Large-load tariffs and cost allocation laws by state

SB 270: Electric Utilities; review by Public Service Commission of certain contracts with large load data centers further provided for

The Public Service Commission must review contracts between utilities and large load data center customers requiring 150 megawatts or greater peak demand. The Commission must determine that such contracts provide positive benefits to other retail customers and promote conditions expected to benefit the utility's service territory over the contract term.

AB 2383: Electricity: data centers.

The Public Utilities Commission must establish by January 1, 2028 a separate tariff classification for large energy use facilities. Electrical corporations and load-serving entities receiving service requests from large energy use facilities must ensure tariffs allocate costs proportionally, avoid cost-shifting to other consumers, and meet specified requirements including minimum 10-year contract terms and prohibitions on net metering.

Takes effect 1 January 2027

SB 1168: Data centers: rate structures.

The Public Utilities Commission must assess opportunities for rate structures in new or existing proceedings to ensure data centers pay their reasonable share of transmission and distribution costs, pay their proportionate share of load increases and procurements needed to reliably serve their loads, and alleviate cost pressures on residential ratepayers.

Takes effect 1 January 2027

SB 886: California Technology Innovation and Ratepayer Protection Act.

The Public Utilities Commission must establish separate tariffs for interconnection and transmission, distribution, and optional generation services to participating customers (data centers with minimum peak demand not exceeding 25 megawatts) by July 1, 2027. The commission must ensure tariffs prevent cost shifts to nonparticipating customers and require participating customers to prefund at least 10-year generation contracts and participate in demand response programs.

Takes effect 1 January 2027

SB 57: Electrical corporations: data centers: report.

The Public Utilities Commission may assess whether electrical corporation costs associated with new loads from data centers result in cost shifts to other customers. The commission must submit this assessment to relevant legislative policy committees and publicly post it on its website on or before January 1, 2027.

HB 25-1177: Utility Economic Development Rate Tariff Adjustments

Investor-owned electric utilities may propose economic development rates to qualifying commercial or industrial customers for up to 25 years and may negotiate agreements for loads up to 40 megawatts without commission approval if compliant with approved tariffs. The commission must approve or deny applications within 120 days after a 14 business day notice period and must consider broader economic benefits to all customer classes and surrounding communities.

HB 233: An act to amend title 26 of the delaware code relating to large energy use facilities.

Commission-regulated electric utilities must not provide distribution service to large energy use facilities unless the facility has entered into a Commission-approved Electric Service Agreement. Large energy use facilities may procure electric supply service from certified electric suppliers and cannot be required to purchase from the utility. ESAs must include specified protective provisions and cannot restrict procurement from certified suppliers.

HB 310: An act to amend title 30 of the delaware code relating to business tax credits and deductions.

SB 308: An act to amend title 26 of the delaware code relating to the load forecast accountability act.

Amends the Load Forecast Accountability Act to require the Delaware Public Service Commission to consider four specific factors when investigating electric distribution companies' load forecast methodologies: project development status, ramping schedules, duplicative interconnection requests, and customer financial commitments.

SB 276: An act to amend title 26 of the delaware code relating to electric utilities.

SB 484: Data Centers

Public utilities must file tariffs by October 1, 2026 ensuring large load customers bear their full cost of service without shifting costs to other ratepayers. Public utilities may not knowingly provide electric service to foreign entities qualifying as large load customers. Water management districts and the Department of Environmental Protection must require reclaimed water use by large-scale data centers when feasible.

Took effect 1 July 2026

H 911: PUBLIC UTILITIES – Adds to existing law to provide for new large loads.

Public utilities must obtain commission approval before providing service to new large loads. Service contracts must include a no harm test demonstrating the load maintains service quality and funds its full cost of service. New large loads must provide financial security to protect against stranded costs.

Took effect 1 July 2026

HB 1007: Energy generation resources.

Taxpayers making qualified investments in small modular nuclear reactor manufacturing in Indiana must claim a tax credit equal to ten percent of qualified investment against state tax liability. Energy utilities must obtain Indiana Utility Regulatory Commission approval before acquiring generation resources to meet load growth exceeding five percent of average peak demand or 150 megawatts, or before serving large load customers requiring over 500 million dollars capital investment.

Took effect 1 July 2025

SB 92: Extending the expiration date for provisions that authorize an electric utility to not offer parallel generation service to certain large load customers and exempt certain large load customers from the determination of the utility's peak demand.

Every utility providing retail electric service in Kansas must enter into parallel generation service contracts with customers in good standing who wish to connect listed distributed energy systems to export excess power to the utility's system. Utilities must compensate customers for exported energy at not less than 100% of monthly avoided cost, except utilities may use locational marginal price or monthly system average cost through July 1, 2030.

LD 912: An Act To Address The Use Of Electricity By Data Centers

A generation service provider may not provide to data centers in the State a cumulative amount of electricity in a calendar year that exceeds 25% of the total electricity sold by that generation service provider to all of its customers in the State in that calendar year. Generation service providers must file quarterly reports with the commission identifying each data center served, electricity sold to each data center that quarter, and other information the commission requires.

LB 1010: Adopt the Large Load Customer Regulation Act, provide for eminent domain relating to energy storage and regulation and taxation of energy storage resources, and change provisions relating to cryptocurrency mining operations and data centers

Owners of renewable energy generation facilities and energy storage resources with nameplate capacity of one hundred kilowatts or more must annually pay a nameplate capacity tax of three thousand five hundred eighteen dollars per megawatt to the Department of Revenue. Owners must file annual reports by March 1 and pay taxes quarterly beginning April 1.

LB 526: Provide powers and duties for public power districts related to cryptocurrency mining operations

Public power suppliers may impose requirements on cryptocurrency mining operations of one megawatt or greater for infrastructure upgrade costs, including direct payment, letters of credit, or terms and conditions. Persons intending to install such operations must notify their local public power supplier. Public power suppliers must conduct load studies before imposing requirements and publish operation counts and energy usage on their websites.

A 796: Requires electric public utilities to develop and apply special rules for certain data centers to protect non-data center customers from increased costs.**

The Board of Public Utilities must establish standards within 12 months for electric public utilities to provide electricity to large data center customers. Electric public utilities must file tariffs within 180 days and apply them to large data center customers. Standards must ensure other customers do not subsidize data centers and that all costs are allocated to data center customers.

A 5466: Requires BPU to study effects of data centers on electricity costs.*

Requires the Board of Public Utilities to study within one year how data centers affect electricity costs in New Jersey, including whether non-data center customers subsidize data center costs and what policy alternatives could mitigate rate increases, with findings due to the Governor and Legislature within 15 months.

SB 103: Allow alternative rate plans for certain natural gas companies

Natural gas companies with infrastructure development riders must apply to the Public Utilities Commission for alternative rate plans to serve large load customers consuming over 1.2 million Mcf annually. Alternative rate plans must protect non-participating customers from stranded costs and require monthly cost credits compensating other customers for the large load customer's system use.

HB 2992: Corporation Commission; creating the Data Center Customer Ratepayer Protection Act of 2026; effective date; emergency.

Electric suppliers must establish and maintain separate terms, conditions, and tariffs for large load customers, with service terms of at least ten years. Applicable governing bodies must ensure residential, commercial, and industrial customers are protected from unjust rates resulting from large load customer service. Large load customers must notify the Corporation Commission, county commissioners, and property owners within five miles at least sixty days before purchasing land outside industrial development projects.

Took effect 1 July 2026

HB 3546: Relating to large energy use facilities; and declaring an emergency.

H 3309: Electrical Utilities

Electric utilities may elect to have annual rate adjustment procedures apply prospectively by filing notice with the Public Service Commission. Utilities must file quarterly monitoring reports showing actual and pro forma financial data. The Office of Regulatory Staff must review monitoring reports and propose adjustments to bring them into compliance with established procedures.

HB 1038: allow the Public Utilities Commission to assess actual costs to data centers that are customers of public utilities.

The Public Utilities Commission may assess a data center customer of a public utility the actual costs associated with processing a request for approval of a contract with deviations or other electric service agreement, where the data center has a peak demand of ten megawatts or greater. Moneys collected must be forwarded to the state treasurer for deposit in the South Dakota Public Utilities Commission gross receipts tax fund.

Took effect 1 July 2026

SB 135: protect residents from increased utility costs and utility shortages caused by data centers and clarify authority to regulate data centers.

Providers of electricity must establish separate terms and conditions for data centers with peak demand of ten megawatts or greater, requiring data centers to reimburse all costs fairly attributed to service demand and consumption. Operators of data centers must notify local water providers of projected water consumption and submit semi-annual water usage reports to the Board of Water Management.

Took effect 1 July 2026

HB 1847: Computers and Electronic Processing - As enacted, generally prohibits a municipality or electric utility to pay or absorb the cost of electrical infrastructure incurred to serve a data center; makes related changes. - Amends TCA Title 5; Title 6; Title 7; Title 13 and Title 65.

The owner or operator of a data center must pay the full cost of infrastructure needed to support the data center. An electric utility must conduct ratemaking to ensure data center infrastructure costs are paid solely by the data center owner or operator and must not raise rates for residential or other commercial or industrial customers due to data center demand.

Takes effect 1 January 2027

SB 6: Relating to the planning for, interconnection and operation of, and costs related to providing service for certain electrical loads and to the generation of electric power by a water supply or sewer service corporation.

Large load customers in ERCOT requesting new or expanded interconnection exceeding 75 megawatts must disclose whether they are pursuing substantially similar requests elsewhere that would materially change their interconnection request. Interconnecting utilities must pass through reasonable interconnection costs to large load customers. Large load customers must disclose on-site backup generating facilities capable of serving at least 50 percent of on-site demand.

HB 2644: Electric cooperative subsidiaries; customers exceeding 90 megawatts demand.

Electric cooperatives may establish subsidiaries to engage in unregulated business activities, including making unregulated sales of electric power to members served at dedicated or excess facilities within the cooperative's certificated service territory that contract for electric utility services to serve a demand reasonably expected to exceed 90 megawatts. Cooperatives must separate regulated and unregulated businesses through affiliates and prohibit cost-shifting, cross-subsidies, and anticompetitive behavior between the cooperative and its affiliates.

Took effect 1 July 2025

SB 1197: Electric cooperative subsidiaries; customers exceeding 90 megawatts demand.

Electric cooperatives and their affiliates may establish subsidiaries to make unregulated sales of electric power to members served by dedicated or excess facilities within the cooperative's certificated service territory that contract for electric utility services to serve a demand reasonably expected to exceed 90 megawatts. Cooperatives must separate regulated and unregulated businesses except through affiliates.

Took effect 1 July 2025