‘We need AI, but it needs to be developed with the grid and ratepayers in mind.’
SCHAUMBURG, IL (September 17, 2026) — The U.S. House of Representatives this week passed the Ratepayer Protection Act, a bill aimed at shielding people from electricity price hikes caused by the construction of energy-intensive AI data centers.
The bill would require the owners of data centers that draw more than 100 megawatts of power from the grid to pay for upgrade costs to the grid. The bill’s power to enforce this, however, is limited. The legislation would mandate that state public utility commissions “commence consideration” of enforcing the mandates within one year of it becoming law.
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“Americans have been expressing their concerns over AI in recent months and much of that concern centers on their belief – incorrectly so – that their utility bills will increase due to data center demand for energy.
“For several years, Heartland has been cautioning policymakers for the need to ensure affordable, reliable energy and breaking a years-long fantasy that America’s energy demands could be met with renewable energy required a robust policy that protects smaller ratepayers and the demand would be met and paid for by the largest consumers. This legislation strikes the balance in preserving free enterprise and protecting smaller ratepayers from that demand for energy.
“In effect, energy policy is data center policy. For several years, we have been cautioning policymakers on the need to ensure affordable, reliable energy and breaking a years-long fantasy that America’s energy demands could be met with renewable energy. Reality requires a robust policy that protects smaller ratepayers and the increased demand should be met and paid for by the largest consumers. This legislation is the proper balance and response to concerns.”
Cameron Sholty
Director of Government Relations
The Heartland Institute
[email protected]
“This is a step in the right direction. We need AI, but it needs to be developed with the grid and ratepayers in mind. For too long, tech giants have drawn from the grid while undermining its effective, affordable operation by pushing wind and solar boondoggles. It is now dawning on them that the ‘green energy’ sources they’ve pushed for the nation, won’t keep their AI data centers up and running, and are increasingly pushing for carve outs for themselves: ‘Fossil fuels and nuclear for we, not for thee.’ Congress is saying, this must end.
“This bill codifies the fact that if AI wants energy, it must pay for it rather than spreading the costs across ratepayers in general. The grid and ratepayers will benefit. Any generation sources built by AI data centers will place no new demand on the grid but will be able to sell excess power back to the grid, meaning more power for everyone.”
H. Sterling Burnett, Ph.D.
Director, Arthur B. Robinson Center on Climate and Environmental Policy
The Heartland Institute
[email protected]
The Heartland Institute is a national nonprofit organization founded in 1984 and headquartered in Schaumburg, Illinois. Its mission is to discover, develop, and promote free-market solutions to social and economic problems. For more information, visit our website or call 312/377-4000.
H. Sterling Burnett, Ph.D., is the Director of the Arthur B. Robinson Center on Climate and Environmental Policy and the managing editor of Environment & Climate News.
