Data centers: rate structures

Rapidly growing data-center electricity demand can require new transmission, distribution, and power supplies. The law directs the commission to consider rates that reduce resulting cost pressure on residential customers.

What the law does ​

• Requires the commission, in a new or existing proceeding, to assess rate-structure options for data centers.
• Requires assessment of rates ensuring data centers pay a reasonable share of transmission and distribution costs, whether they connect to the transmission or distribution system.
• Requires assessment of rates making data centers pay their proportionate share of load growth and procurement needed to reliably serve them, consistent with integrated resource planning.
• Requires assessment of options to alleviate cost pressure on residential ratepayers, including California Alternate Rates for Energy and Family Electric Rate Assistance customers.

Who it affects ​

• Data centers seeking or receiving electric service.
• Electric utility customers, especially residential customers and customers enrolled in California Alternate Rates for Energy or Family Electric Rate Assistance.
• Electric utilities subject to Public Utilities Commission rate regulation.