Democrats line up against ‘toothless’ bill to prevent electricity cost increases from data centers

Senate Democrats are poised to block a House-passed bill asking local utility regulators to consider forcing data centers to pay for any electricity cost increases they incur.

The Ratepayer Protection Act passed the House earlier this month, and Senate Republicans have set a Wednesday procedural vote to begin debate on the measure.

However, it is unlikely the bill will get the 60 votes needed to overcome a filibuster because Senate Democrats are lining up against the bill, calling it “toothless.”

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“At a time when Americans are calling out for real guardrails on AI, Senate Republicans are trying to secure an ineffectual participation trophy before they skip town,” said Senate Minority Leader Charles E. Schumer.

The New York Democrat called the Ratepayer Protection Act “a fraud” because the bill only requires state utility regulators and non-regulated utilities to “consider” whether to make data centers pay for any infrastructure upgrades or other costs associated with their high electricity demand.

He said Democrats want to make it mandatory, not optional, to ensure those costs are not passed onto consumers in the form of higher electricity rates.

Sen. Jon Husted, Ohio Republican and lead sponsor of the Ratepayer Protection Act, defended the bill’s design.

“The federal government doesn’t run the grid. The states run the grid,” he said. “You have to do it in a collaborative process with the states.”

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Republicans accused Senate Democrats of playing “political games,” given the broad bipartisan support for the bill in the House.

“I don’t know how you can say something that passed the House of Representatives 417-3 isn’t consequential,” said Senate Majority Leader John Thune, South Dakota Republican. “This is a bill that could go to the president and could become law.”

He pointed out that House Minority Leader Hakeem Jeffries, New York Democrat, was among the bill’s supporters.

Mr. Schumer said Mr. Jeffries “had no choice” because it was an up or down vote, whereas the Senate has the option to pursue amendments.

However, in blocking the bill from coming up for debate, Democrats would be shutting down the opportunity to amend it.

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Most Democrats interviewed for this story said they will be voting against starting debate on the bill.

“The bill is a complete and total sham,” said Sen. Richard Blumenthal, Connecticut Democrat. “It is bait-and-switch at its worst, a political ploy to give Republicans cover and provide a talking point when they go home and try to excuse the rising prices of everything from gasoline to groceries.”

Sen. Tammy Baldwin, Wisconsin Democrat, said she is opposed because the bill only provides for voluntary compliance.

“It has no teeth, and I think what people I’m talking to back in Wisconsin want is enforcement,” she said.

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Sen. Bernie Sanders, Vermont independent, said he wants to go even further and impose “a moratorium on the construction of data centers.”

A few Democrats said they had not decided how to vote, so it is possible that Republicans could pick up some support – but likely not enough to begin debate on the bill.

“I wish that they were putting forward a much more impactful proposal. This falls short of where we need to be, but we’ll see where I land,” said Sen. Raphael Warnock, Georgia Democrat.

Mr. Schumer and other Democrats said Republicans are only bringing the bill to the floor to aid Mr. Husted in his reelection campaign.

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His Democratic opponent, former Sen. Sherrod Brown, has attacked Mr. Husted for giving out billions in “sweetheart tax cuts” to bring data centers to Ohio when he was lieutenant governor.

Mr. Schumer said if Mr. Husted really wanted to prevent consumers from shouldering data center costs that he would support one of several bills Democrats have offered to make the requirement mandatory.

Mr. Husted said he is willing to pass both versions by unanimous consent, which would allow the Ratepayer Protection Act to become law and the House to decide whether to take up the Democratic alternative to further enforce the matter.

He argued that Democrats should not hold out for the latter when they have legislation in front of them that could become law.

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“This bill passing is the only way you get a chance to prove to the American people before the midterm elections whose side you’re on,” Mr. Husted said. “And I’m hopeful that they will show, like the House did, that they’re willing to embrace a bipartisan process to lower electricity prices and hold data centers accountable.”

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Lindsey McPherson

lmcpherson@washingtontimes.com

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