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Committee backs bill to shield ratepayers from costs tied to large energy users such as data centers
Summary
The Assembly Committee on Utilities and Energy advanced SB 57, directing the California Public Utilities Commission to establish tariffs for large energy users — such as rapidly expanding data centers — intended to minimize cost‑shifting to other customers and to prioritize on‑site storage, emissions reductions and fair cost‑sharing for wildfire mitigation and other societal costs.
Senator Padilla presented SB 57, which seeks to protect non‑participating electricity customers from paying for transmission and interconnection costs associated with large new energy users — most notably data centers and other sudden large demands on the grid.
Sponsor testimony argued rapid data‑center build‑out can strain the grid, lead to large transmission upgrades, and in some cases leave ratepayers liable for stranded asset costs if large customers close before paying their share. Supporters asked the PUC to design a large‑energy‑user tariff that minimizes cost shifting, requires direct transmission customers to pay a…
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