As AI Data Centers Drive Up Energy Costs, Ratepayer Protection Act Won’t Fully Protect Ratepayers

WASHINGTON, D.C. — The U.S. House of Representatives will vote today on the Ratepayer Protection Act, which asks states to ensure data centers pay for certain grid interconnection costs. The rapid growth of AI data centers across the country have driven up costs of electricity for households and businesses. In response, Tyson Slocum, director of Public Citizen’s Energy Program, issued the following statement:

“The Ratepayer Protection Act has very limited ability to actually protect consumers from higher utility rates, as it simply asks states to ‘consider’ requiring data centers to pay for certain grid interconnection costs. While a federal mandate forcing states to consider such a step provides opportunities for advocates to press for consumer protections, there are a myriad of other consumer and community impacts from data centers unaddressed in this bill.

“The Ratepayer Protection Act is only a minor, first step toward protecting consumers from the impacts of AI data centers. This bill leaves too much uncertainty to reliably protect all ratepayers.

“In every state across the country, the construction of AI data centers has triggered massive protests and bipartisan push-back. Despite communities’ legitimate concerns about the impacts these facilities have, President Trump attacked Americans raising these issues as ‘backwards and poor.’ The nationwide backlash against AI data centers demands comprehensive protections for consumers, communities and the climate that is missing from the Ratepayer Protection Act. Congress needs to do more, and the Ratepayer Protection Act is merely a minimal first step towards understanding the depth of the issues raised by a nascent and naive industry that is out of control.”

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