Ohio Senator's Data Center Bill: Aims to Curb Energy Costs, But Impact Uncertain
A bill introduced by Sen. Jon Husted (R-Ohio) seeks to address the high electricity costs linked to data centers, but whether it would actually make a difference remains unclear even if it becomes law.
The Ratepayer Protection Act, which passed the House by a wide margin of 417-3, would mandate that states and certain electric utilities examine a standard requiring data centers to cover the additional expenses generated by their substantial power consumption.
However, the legislation stops short of forcing the adoption of such standards. It leaves the decision to states or non-regulated utilities, giving them a two-year window to determine whether they wish to implement the standard.
According to experts and electricity rate advocates who spoke with The Hill in recent weeks, the bill could represent a move toward reducing data centers' electricity costs by compelling states that have not yet taken action to at least consider a policy shift.
Clara Summers, director of the Consumers for a Better Grid Campaign at Citizens Utility Board, told The Hill in July that some states are not tackling the issue with much urgency. She said a signal from Congress telling them to address the matter within a specific timeframe would be a positive push.
Allison Clements, a former commissioner of the Federal Energy Regulatory Commission, noted that for certain states, the bill's provisions might duplicate obligations already set by a recent commission order.
Clements, a Democrat who is now a principal at energy consulting firm 804 Advisory, described the bill as a good step but far from adequate given the scale of the challenges.
Despite its easy passage in the House, the bill is likely to encounter opposition from Democrats in the Senate, where several lawmakers have argued it does too little.
Sen. John Hickenlooper (D-Colo.) told The Hill on Tuesday that the bill lacks enforcement power.
Husted has defended the legislation, saying it is crucial to guarantee that American families are not left paying for the energy infrastructure that data centers need.
The Ohio Republican is currently in a competitive Senate race against former Sen. Sherrod Brown (D-Ohio).
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