Rep. Garamendi Joins Tonko to Introduce Bill to Shield Consumers from Data Center-Driven Energy Hikes

WASHINGTON, DC - Today, Congressman John Garamendi (CA-08) joined Congressman Paul D. Tonko (NY-20), and 22 of their House and Senate Colleagues in introducing the Power for the People Act. This legislation ensures that data centers are held responsible for the high costs of their electricity demand.  

The rise of artificial intelligence models has resulted in data center development exploding in recent years. With data centers critical to national security, economic development, and job growth, their need will only increase.

However, data centers are huge energy consumers, and their rapid growth and energy demand is placing increased strain on the electric grid. Recent reports have indicated that 55% of new energy demand in the US comes solely from data centers, and if load forecasts are correct, data centers will represent 15% of our national electricity consumption by 2030. Without proper backstops in place, new energy demand from data centers will continue to increase prices resulting in big profits for energy companies and big bills for electricity customers.

“At a time when families are already being stretched thin, Congress has a responsibility to ensure that rising energy costs don’t put basic necessities out of reach,” said Congressman Garamendi. “This legislation is about putting consumers first and restoring fairness to our energy system. I thank Representative Tonko and Senator Van Hollen for their leadership on this very important piece of legislation.” 

“Families are already paying higher prices for everything from groceries to healthcare, to gas, to utilities — they shouldn’t be forced to also shoulder the costs for companies building data centers,” said Congressman Tonko. “Our Power for the People Act balances the need for data center development without pushing those costs onto consumers. I thank my colleagues for supporting this commonsense legislation that protects consumers and grid reliability while holding big technology companies accountable.” 

The Power for the People Act will:

• Direct FERC to issue a rule to ensure data centers are paying for the local transmission upgrades they require
• Direct FERC to issue a rule requiring electric grid operators to create a data center load queue
• Create a system to manage data center interconnection to the grid that would prioritize data centers that:  
  • Bring their own new power generation and battery storage systems to the grid;
  • Mitigate pollution; and
  • Create good paying jobs
• Support efforts to improve accurate data center load forecasting  

House Cosponsors include: Representatives Kathy Castor (FL-14), Steve Cohen (TN-09), Maxine Dexter (OR-03), Sarah Elfreth (MD-03), Valerie Foushee (NC-04), Dan Goldman (NY-10), Eleanor Holmes Norton (DC-AL), Glenn Ivey (MD-04), Stephen Lynch (MA-08), April McClain Delaney (MD-06), Jennifer McClellan (VA-04), Kweisi Mfume (MD-07), Johnny Olszewski (MD-02), Mike Quigley (IL-05), and Jan Schakowsky (IL-09).

Senate Cosponsors include: Senators Angela Alsobrooks (D-MD), Richard Blumenthal (D-CN), Cory Booker (D-NJ) Tammy Duckworth (D-IL), Dick Durbin (D-IL), Tina Smith (D-MN), and Peter Welch (D-VT).  

Supporting organizations include: NRDC, Union of Concerned Scientists, Sierra Club, Evergreen, Consumer Federation of America, National Consumer Law Center, Public Citizen, Maryland People’s Counsel, Illinois Citizens Utility Board, New Jersey Division of the Rate Counsel, Oregon Citizens Utility Board, and Delaware Division of the Public Advocate  

A fact-sheet of the bill is attached HERE.

Bill text is linked HERE.

A section-by-section of this bill is linked HERE.

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