Committee pauses data‑center rate protections bill after extensive questions on PSC authority and cost allocation

Representative Schammerhorn introduced House Bill 922 to establish rules ensuring that new large electric demands—commonly associated with data centers—do not shift infrastructure costs to ordinary ratepayers. The bill would require disclosures and reporting and would condition certain utility treatment on private pay‑for‑infrastructure commitments by the data centers themselves.

Public Service Commission staff (Brandon Frey) told the committee the PSC has plenary rate‑setting authority and that many of the protections at issue are already addressed in PSC practice and in recent negotiated agreements; he warned that statutory provisions should not conflict with the commission’s constitutional rate‑making role. Utility witnesses described negotiated contracts in which large customers (e.g., Meta) subsidize construction work in progress (CWIP) and said existing contract terms include credit protections and long term commitments that reduce risk to other customers. Environmental and consumer groups urged clear statutory protections so that ratepayers are not left holding utility costs if an industrial customer leaves.

Committee members asked how “cost causation” would be defined, how long contractual guarantees would be enforced, whether subsidiaries would be held to parent‑company guarantees, and whether the law would chill economic development. Representative Schammerhorn and witnesses said the bills’ goal is to protect ratepayers while preserving competitiveness; the author agreed to voluntarily defer HB 922 to work with PSC staff, LED, utilities and consumer groups on precise cost‑allocation guarantees and reporting language.