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America’s Electric Companies Protect Customers by Ensuring Data Centers Pay Their Fair Share
America’s Electric Companies Protect Customers by Ensuring Data Centers Pay Their Fair Share
Data center agreements must cover their infrastructure costs, help make electricity more affordable, and deliver real improvements to communities
WASHINGTON (September 15, 2026) — The Edison Electric Institute (EEI) welcomes the House's consideration of the Ratepayer Protection Act, which reinforces work already underway across the country to protect families and small businesses from costs associated with serving data centers and other large energy users.
“Across America, EEI members are working to protect customers and ensure data center agreements deliver real benefits for families, workers, and communities,” said EEI President and CEO Drew Maloney. “We appreciate Congress’ focus on protecting customers as electricity demand grows. Our members will continue working in lockstep to ensure large customers cover the costs of the energy infrastructure they use, and communities have a strong voice from the beginning of the planning process.”
EEI supported the White House’s rollout of the Ratepayer Protection Pledge, during which tech companies committed to pay their fair share for energy infrastructure needed to power data centers, advanced manufacturing facilities, and other large loads. For EEI members, that means large customers should cover the full costs associated with serving them so those costs do not shift to families and small businesses.
Delivering Measurable Customer Benefits
EEI members are also ensuring data center agreements deliver real benefits to communities across the country:
- Iowa: State regulators approved a five-year rate freeze for Alliant Energy’s residential customers as the company works to serve new large-load development.
- Georgia: Regulators approved a plan expected to lower customer bills by approximately $50 per year, following approval of a multiyear base-rate freeze through 2028.
- Alabama: A similar rate freeze has been approved in Alabama through 2027.
- Arkansas, Louisiana, and Mississippi: Entergy estimates its 2.3 million customers will realize $7 billion in total savings from the company’s work with data centers.
- Indiana: NiSource expects customers to save $1.4 billion through its data center strategy.
- North Carolina: In North Carolina, Duke Energy is helping create 2,000 temporary jobs and 500 permanent jobs in Richmond County through their data center work with AWS, expanding the county's tax base and driving new businesses and economic development.
Protecting Customers
State commissions across the country have approved or are considering large-load tariffs designed to protect existing customers from cost shifts. These tariffs establish rates, contract terms, and financial commitments that help ensure large customers cover the full cost of serving them.
As of September 2026, 25 states have approved at least one large-load tariff, and seven states have tariffs pending. Common provisions include:
- Minimum billing requirements that help ensure large customers cover committed costs.
- Financial commitments that reduce risk for existing customers.
- Appropriate contract terms and other safeguards that prevent costs from shifting to families and small businesses.
Large-load tariffs are one part of a broader strategy to protect customers. Electric companies and states also use regulatory processes, service rules, and contract terms to reduce risk, maintain reliability, and protect families and small businesses.
Because energy needs, regulations, resources, and infrastructure vary across the country, these tools work best when state regulators, electric companies, consumer representatives, and local stakeholders tailor them to local circumstances.
Strengthening the Grid for All Customers
Meeting growing electricity demand requires continued investment in generation, transmission, distribution, and grid resilience. When responsibly connected to the grid, data centers and other large customers can help fund infrastructure that benefits everyone. Their contributions also can spread fixed system costs across a broader customer base.
A growing body of research, including from EPRI, Columbia University, and the Brattle Group, shows that responsibly connecting data centers and other large customers to the grid can put downward pressure on rates and benefit existing customers. Separate analyses from Charles River Associates, Lawrence Berkeley National Laboratory, and the Brattle Group also found that customers outside the PJM Interconnection region have largely been shielded from data center-related cost increases.
Partnering Early With Communities
Early coordination, transparency, and meaningful community engagement are essential. Data center developers should engage electric companies and communities early, clearly explain their proposals, and identify tangible benefits for local customers.
America’s electric companies have served their communities for generations. That local experience helps them work with regulators, consumer representatives, labor organizations, businesses, and community leaders to develop projects that support reliability, affordability, and responsible economic development.
Learn More
These conversations take a closer look at how data center growth can protect existing customers, strengthen the grid, and deliver visible benefits to host communities: