Bill > SB128

This bill introduces new regulations for "large-use customers," defined as entities established after July 1, 2026, requiring electric service with a contracted demand of 2,000 kilowatts or more, and specifically addresses "data centers," which are facilities for storing and processing electronic data. For data centers, the bill mandates they notify and cooperate with local water providers to ensure their projected water use is compatible with local supply, implement closed-loop cooling technology to limit net water withdrawal, and adhere to daily water consumption limits set by the Water Management Board. These customers must also reduce their water use during declared water shortages to prioritize residential and essential public services, and submit quarterly reports on their water usage to the board, with this data made public. The bill also amends existing laws to clarify definitions related to public utilities and telecommunications companies, and establishes a new service classification for large-use customers with separate tariffs and schedules to ensure their "incremental costs" (additional costs incurred by a utility to serve them) are not passed on to other customers. Furthermore, it allows large-use customers to negotiate special electric service rates and contracts, provided these contracts do not shift incremental costs or subsidize other customers, and are approved by the commission after considering factors like service requirements, power availability, and customer preference. Finally, in times of energy shortage or when peak demand is projected to exceed supply, large-use customers must curtail their electricity usage until residential and essential public service demands are met.

Government Affairs

https://sdlegislature.gov/#/Session/Bill/26547