What does Preamble of Power for the People Act of 2026 do?

This bill aims to promote the creation of data center load queues and data center-specific rate classes. The stated purpose is to mitigate the impact of data centers on other electricity consumers.

What does SHORT TITLE. of Power for the People Act of 2026 do?

This bill is formally titled the Power for the People Act of 2026.

What does SENSE OF CONGRESS. of Power for the People Act of 2026 do?

This section expresses the sense of Congress that current energy policies and electricity market structures result in households and businesses subsidizing data center development through rising energy bills. Analysis suggests data centers are projected to significantly increase electricity consumption, potentially accounting for 6.7% to 12% of all energy demand by 2028, contributing to higher electricity prices. The section asserts ratepayers should not bear the financial risks and costs of infrastructure investments needed to support data center energy demands and that data center owners and operators should be held accountable for increased energy costs. Congress believes the rapid growth of data centers is impacting grid reliability and interstate commerce, necessitating increased federal oversight to prevent reliability and affordability risks. The section highlights that data centers affect transmission systems and increase costs, regardless of direct connection to transmission facilities. Any policy solutions should minimize climate and environmental impacts while creating jobs. The Federal Energy Regulatory Commission (Commission) is authorized to require grid operators to create 'load queues' for data centers to incentivize practices like paying for system upgrades and providing load flexibility. Grid operators have the authority to delay or deny data center interconnection to ensure reliability, and this is not considered 'unduly discriminatory' under the Federal Power Act. The section encourages broader adoption of rate classes specific to data centers across all states to ensure data center owners and operators cover energy system cost increases.

What does DEFINITIONS. of Power for the People Act of 2026 do?

This section defines terms used throughout the Act. The term 'Commission' refers to the Federal Energy Regulatory Commission. A 'covered interconnection entity' includes Independent System Operators, Regional Transmission Organizations, and transmitting utilities responsible for data center load interconnection requests. A 'data center' is defined as a facility with an energy demand greater than 50 megawatts, primarily hosting electronic equipment, and not owned by the Federal Government. The 'data center load queue' relates to requests for data center load interconnection. A 'data center owner or operator' is any person who owns, builds, or operates a data center. A 'facility used to mine cryptocurrency' is defined similarly to a data center, but specifically for cryptocurrency mining. ’Organic load growth’ refers to load growth attributable to economic or population growth, excluding data centers and cryptocurrency mining facilities. A 'qualifying load flexibility agreement' allows covered interconnection entities to interrupt data centers before other grid users during grid protection needs.

What does DATA CENTER LOAD QUEUES. of Power for the People Act of 2026 do?

This section requires the Commission to issue a rule within 180 days of enactment establishing data center load queue systems. These systems prioritize interconnection for data centers that implement strategies to offset electricity demand, reduce costs for ratepayers, and mitigate pollution. Qualifying strategies include bringing new, low- or no-carbon energy supply resources to the grid, incorporating low- or no-carbon backup generation, and ensuring prevailing wage and apprenticeship standards during construction. Data centers may be delayed or denied interconnection if it adversely affects the reliability or affordability of electricity for non-data center users. The Commission must establish minimum standards and guidelines for qualifying load flexibility agreements to minimize the need for new generation and transmission. Priority in the data center load queue is determined by a sliding scale based on the carbon intensity of generation sources, with lower carbon intensity receiving higher priority. Contractors and subcontractors on data center projects must pay prevailing wages and utilize registered apprentices. The Commission must ensure compliance with the rule within one year of its issuance. Data centers cannot interconnect with the grid unless they have advanced through the applicable data center load queue system.

What does LOCAL TRANSMISSION COST ALLOCATION. of Power for the People Act of 2026 do?

This section requires the Commission to direct public utilities to file tariff amendments. These amendments must allocate local transmission upgrade costs to interconnecting data centers if those costs would not be needed without the data center. Data centers are required to pay transmission rates that reflect the embedded cost of the integrated grid, excluding the local transmission upgrade costs allocated under paragraph (1).

What does DATA CENTER-SPECIFIC RATE CLASSES. of Power for the People Act of 2026 do?

This section amends the Public Utility Regulatory Policies Act of 1978 to establish data center-specific rate classes. States with data centers or proposed data center projects must consider establishing rate classes to ensure data centers cover the full cost of upgrades. Potential requirements for data center rate classes include minimum demand charges, extended utility contract lengths, increased interconnection study costs, flexible load ramp periods, clean transition tariffs, and contribution in aid of construction (CIAC). State regulatory authorities and nonregulated electric utilities are required to commence consideration of this standard within one year of enactment and complete consideration within two years. Failure to comply with the standard is subject to specific timelines tied to the enactment of paragraph (22). Prior state actions regarding similar standards are not subject to the requirements of subsections (b) and (c) of section 112.

What does CREATION OF APPROPRIATE RATE CLASSES. of Power for the People Act of 2026 do?

This section establishes a program administered by the Secretary to provide grants and technical assistance. The program targets State regulatory authorities and nonregulated electric utilities. The assistance aims to facilitate the creation of appropriate rate classes for data centers. The goal is to prevent costs related to data center energy demands, including network upgrades, from being borne by non-data center customers. The program's creation must occur within 180 days of the Act's enactment. The standard for rate classes is based on paragraph (22) of section 111(d) of the Public Utility Regulatory Policies Act of 1978.

What does LOAD AND INTERCONNECTION FORECASTING. of Power for the People Act of 2026 do?

This section establishes a program for the Secretary to provide technical assistance to covered interconnection entities for forecasting long-term load projections, particularly concerning data center load interconnection requests. The program must be established within 180 days of the Act's enactment. The Commission is directed to establish transparency and disclosure requirements for data center load interconnection requests, including those at the transmission and distribution levels. These requirements aim to reduce duplicative and speculative requests that hinder accurate forecasting. The Commission will determine appropriate transparency and information-sharing requirements for utilities and covered interconnection entities.

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Power for the People Act of 2026

Last updated: 4/9/2026 · Introduced: 4/9/2026

Author: Paul Tonko (D-NY)

TL;DR (AI)

This bill directs the Federal Energy Regulatory Commission (FERC) to establish data center load queues, prioritizing interconnection for data centers that reduce electricity demand and mitigate pollution.
It mandates that states consider creating data center-specific rate classes to ensure these facilities cover the full cost of grid upgrades, preventing cost shifts to other consumers.
The bill requires public utilities to allocate local transmission upgrade costs directly to data centers when those upgrades are necessitated by data center interconnection.
It establishes a grant and technical assistance program to help state regulatory authorities and utilities develop appropriate rate classes for data centers.
The bill promotes transparency and disclosure regarding data center load interconnection requests to improve forecasting accuracy and reduce speculative requests.

119th Congressin committeeS. 3682(In Committee)Official page

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Includes provisions on preamble, short title., and 7 more.

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