Sponsors (8)
The bill protects utilities and other ratepayers from stranded upgrade costs and gives states with existing rules relief, but does so by shifting upfront costs and risks onto very large electricity customers and by imposing tight timelines that could strain regulators and affect local competitiveness.
Utilities and other ratepayers face fewer stranded costs because very large customers must cover full incremental upgrade costs and provide financial assurances before upgrades proceed, reducing the risk that remaining customers absorb those expenses.
Electric utilities gain greater financial predictability and lower financial risk because customer financial assurances are required up front, which can simplify utility planning and credit exposure.
States that already have comparable rules are exempted from the bill’s new timelines, preserving existing state regulatory processes and avoiding duplicative proceedings.
Very large nonresidential customers (≥100 MW) will face higher upfront costs or deposits, increasing project costs and financial barriers to locating, expanding, or investing in affected areas.
Shifting upgrade cost recovery onto specific customers can raise local electricity prices or reduce the competitiveness of industrial sites, potentially deterring investment and jobs in affected communities.
Imposing 1–2 year deadlines on states and nonregulated utilities could strain regulatory resources, accelerate contentious proceedings, and increase legal and administrative costs for regulators and utilities.
Based on analysis of 2 sections of legislative text.
Requires very large nonresidential customers (100 MW+ at one site/campus) to cover full incremental costs and provide financial assurances for grid upgrades, and sets State implementation deadlines.
Official title: To amend the Public Utility Regulatory Policies Act of 1978 to establish a Federal standard relating to the recovery of the full, incremental costs of upgrades that serve large-load customers, and for other purposes.
Introduced June 18, 2026 by Gabe Evans · Last progress June 18, 2026
Requires utilities to design rates for very large nonresidential customers so those customers cover the full incremental cost of any generation, transmission, or distribution upgrades needed to serve them. Utilities must secure financial assurances or upfront contributions from those "large-load customers" (100 MW+ at a single site or campus) before building upgrades, and States and nonregulated utilities must begin and complete proceedings to adopt the new Federal standard within 1 and 2 years of enactment unless they already have a comparable standard in place.