Bill > HB2054

This bill, titled the "Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act," aims to protect residential and small business electricity customers from increased costs associated with the growing demand from large energy-intensive users like data centers and AI facilities. It establishes a voluntary "clean transition tariff" (CTT) that allows these large users to pay a premium to fund new, clean electricity generation and necessary grid upgrades, ensuring these costs are not passed on to smaller ratepayers. The bill defines "large energy-intensive users" as facilities with a peak demand of 25 megawatts or greater or those primarily involved in data processing, AI training, cloud computing, or similar operations. It also clarifies that while the Tennessee Valley Authority's (TVA) federal authority remains intact, local power companies (municipal utilities and electric cooperatives) must ensure that large users participate in a CTT or an equivalent TVA-approved rate structure that provides new clean power and prevents cost-shifting. Furthermore, large users will be responsible for the proportional costs of transmission, distribution, and substation upgrades needed to serve their increased electricity usage, with the Tennessee Public Utility Commission overseeing compliance and reporting on these matters annually.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB2054&ga=114