Ratepayer Protection Act

Bill Number

H.R. 9340

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-06-24: Forwarded by Subcommittee to Full Committee by Voice Vote.

Last Updated

2026-07-06T18:25:21Z

AI-Generated Summary

Ratepayer Protection Act (H.R. 9340)

Purpose

The legislation amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to create a federal standard ensuring that large-load customers cover the full costs of electric infrastructure upgrades needed to serve their demand, with the goal of preventing these costs from being passed on to other utility customers.

Key Provisions

• Cost Recovery Standard: Electric utilities must design rates for large-load customers to recover the full incremental costs of any required generation, transmission, or distribution upgrades, including situations where the customer ends service or stops purchasing electricity.
• Financial Assurances Requirement: Before proceeding with upgrades, utilities must obtain financial assurances or contributions from the large-load customer to cover upgrade costs.
• Definition of Large-Load Customer: Applies to non-residential customers entering or requesting contracts for facilities with a combined peak demand of 100 megawatts or more at one site or campus, starting from the date of enactment.
• State Implementation Timelines: State regulatory authorities and nonregulated utilities must begin considering the standard within one year and complete consideration and determination within two years of enactment.
• Exceptions for Prior Actions: States that have already implemented a comparable standard, conducted proceedings, or held legislative votes are exempt from the new timelines.

Significant Changes to Existing Law

This bill adds a new paragraph (22) to Section 111(d) of PURPA, establishing the first federal standard specifically addressing cost allocation for large-load customers. It includes conforming amendments to Sections 112 and 124 of PURPA to set implementation deadlines and reference the new standard's enactment date, while preserving existing processes for other standards.

Potential Impacts

• On Government Agencies: Requires state regulatory authorities to conduct proceedings or hearings on the standard within specified timeframes, potentially increasing administrative workload for utility oversight.
• On Citizens: Aims to shield existing ratepayers from bearing upgrade costs associated with large new loads, though actual effects depend on state implementation.
• On International Relations: No provisions address or affect international matters.

Main Stakeholders Affected

• State regulatory authorities with ratemaking jurisdiction over electric utilities.
• Nonregulated electric utilities.
• Large-load customers, such as industrial or commercial facilities meeting the 100-megawatt threshold.
• Existing utility customers (ratepayers) who may benefit from cost protections.

Notable Legal, Constitutional, or Political Implications

The measure operates within the established PURPA framework, under which states retain authority to consider and adopt (or decline) the standard rather than facing a direct federal mandate. It does not alter constitutional divisions of power or introduce new enforcement mechanisms beyond existing PURPA procedures.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Evans, Gabe [R-CO-8]

Cosponsors (7)

Rep. Castor, Kathy [D-FL-14], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Joyce, John [R-PA-13], Rep. McCaul, Michael T. [R-TX-10], Rep. Baumgartner, Michael [R-WA-5], Rep. Fuller, Clay [R-GA-14], Rep. Wittman, Robert J. [R-VA-1]

Recent Actions

• 2026-06-24: Forwarded by Subcommittee to Full Committee by Voice Vote.
• 2026-06-24: Subcommittee Consideration and Mark-up Session Held
• 2026-06-18: Referred to the Subcommittee on Energy.
• 2026-06-18: Referred to the House Committee on Energy and Commerce.
• 2026-06-18: Introduced in House
• 2026-06-18: Introduced in House

Bill Versions

• Ratepayer Protection Act — issued 2026-06-18 — PDF (5 pages)