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Senate committee reviews H.727 amendment to regulate data centers, proposes $6–$7M annual fee for 20 MW facilities

Senate Education Committee (with discussion of H.727 from Senate Natural Resources) · May 12, 2026
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Summary

Legislative Council walked senators through a strike‑all amendment to H.727 expanding PUC oversight of large‑load data center contracts, requiring site suitability and demand‑side measures, limiting combustion backup to emergencies and creating a new annual "energy transformation payment" estimated at about $6–$7 million for a 20 MW facility.

Maria Royal of Legislative Council walked a Senate committee through a strike‑all amendment to H.727 that would tighten regulatory oversight of large data centers, add demand‑side requirements and create an annual payment to fund energy transformation projects in host communities.

Royal said the amendment treats multiple noncontiguous sites under common management as a single "facility" for the 20‑megawatt threshold that triggers review and that the Public Utility Commission must find contracts serve "the general good of the state" and set out written rationales for its findings. The amendment would require data centers to provide collateral to prevent stranded costs,…

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