The U.S. House has passed legislation backed by Rep. Josh Riley that would require large electricity users such as data centers to cover the grid costs created by their projects instead of shifting those expenses to families and small businesses.
The bipartisan Ratepayer Protection Act would direct state utility regulators to establish rules assigning the full cost of new power generation, transmission lines and related infrastructure upgrades to the large-load customers that require them.
Riley, a Democrat representing New York's 19th Congressional District, said the measure is intended to keep rapid data center development from adding to already high utility bills across Upstate New York.
“Upstate New Yorkers shouldn't be forced to foot the bill for massive data centers that none of us asked for,” Riley said. “If Big Tech wants to build in our communities, they can pay their own way. Our power bills are already way too high — this legislation makes sure that data centers don't drive them even higher.”
How the bill would change cost allocation
Data centers can require large amounts of electricity, and serving them may require utilities to build or upgrade generating capacity, transmission lines and other grid infrastructure.
Riley's office said current rules can allow utilities to recover those expenses from their broader customer base, including households and small businesses that did not create the additional demand.
Under the House-passed bill, state utility regulators would have to create new safeguards so those customers are not charged to subsidize infrastructure built for large-load users. The companies developing data centers would instead be responsible for the full energy and infrastructure costs tied to their projects.
The congressional office cited an Environmental and Energy Study Institute analysis that said utilities nationwide requested more than $29 billion in electricity rate increases during the first half of 2025, nearly twice the amount sought during the same period a year earlier. The release linked those requests in part to infrastructure work and rising electricity demand, though it did not provide a New York-specific share of that total.
The Ratepayer Protection Act is H.R. 9340. House passage advances the measure in Congress, but the release did not specify a Senate timetable.
Riley's broader utility agenda
The vote follows Riley's introduction in July of the FAIR Data Act, H.R. 9655, which also seeks to prevent data center projects from increasing electricity costs for Upstate New York families and small businesses.
Riley has introduced several other utility-focused bills during the current Congress. His Weatherization Enhancement and Readiness Act, introduced in February 2025, would support work intended to reduce home energy use and monthly bills.
The Keep the Lights Local Act, introduced in September 2025, would prohibit foreign corporations and governments from owning U.S. utilities. Riley followed that measure in December with the No Bonuses for Utility Executives Act, which would bar utility executives from receiving bonuses when rates rise faster than inflation.
In April, Riley introduced the No Taxes on Utility Bills Act, which would allow taxpayers to deduct taxes and state-mandated surcharges included on gas and electric bills, and the Lowering Utility Bills Act, aimed at utility overcharges.
He introduced the Smart Meter Data Privacy Protection Act on Sept. 4 to restrict utility companies from selling private customer information and address the use of personal data collected through smart meters.
Riley also participated as an intervener in Central Hudson and NYSEG rate cases during 2025 and 2026, taking part in proceedings and questioning the utilities on behalf of ratepayers, according to his office.
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