Bill > HR8241

This bill, titled the "Power for the People Act of 2026," aims to address the growing electricity demand from data centers and ensure that their impact on other electricity consumers is mitigated. It proposes that the Federal Energy Regulatory Commission (FERC), referred to as the "Commission," mandate that entities responsible for managing electricity grid connections, known as "covered interconnection entities" (which include Independent System Operators and Regional Transmission Organizations), establish "data center load queues." These queues are designed to prioritize data centers that adopt strategies to offset their electricity demand, such as using new, low- or no-carbon energy sources paid for by the data center, incorporating clean backup power, and ensuring fair labor practices during construction. The bill also allows for the delay or denial of data center interconnections if they threaten grid reliability or affordability for non-data center users, and it encourages the development of "qualifying load flexibility agreements" where data centers can be interrupted before other users during grid stress. Furthermore, it directs public utilities to allocate local transmission upgrade costs directly to the data centers that necessitate them, preventing these costs from being passed on to other ratepayers. The bill also amends the Public Utility Regulatory Policies Act of 1978 to encourage states to consider establishing data center-specific rate classes with various requirements, such as minimum demand charges and longer contract lengths, to ensure data centers cover their full energy costs. Finally, it authorizes grants and technical assistance to states and utilities to help them create these rate classes and establishes programs for improved forecasting and transparency of data center electricity demand and interconnection requests.