H.R. 10139: Ratepayer Bill of Rights Act of 2026

This bill would create a set of disclosure and consumer-protection rules for large data centers, which are facilities used to run computers and store digital services. It is aimed at data centers that use a lot of electricity or water: generally, those with at least 50 megawatts of peak electricity demand or at least 100,000 gallons of water use per day, including expansions that reach those levels.

What data centers would have to disclose

• Their projected and actual electricity use, water use, water sources, and wastewater discharge.
• Information about the infrastructure built to serve them, such as power lines, water systems, and other related projects.
• The costs of that infrastructure and who is paying for it.
• The expected effect on rates or bills for households, farms, ranchers, small businesses, schools, and hospitals.
• Any public assistance, permits, or agreements they received.
• Information about any on-site power generation, including its fuel source and emissions.

Much of this information would have to be provided before operations or final approval, then updated on a regular basis. The bill also says the information must be written in plain language and posted in a searchable public database, and it cannot be hidden using confidentiality clauses or trade secret claims if the law requires disclosure.

Cost allocation and ratepayer protections

The bill says covered data centers must pay the costs directly caused by their projects. It prohibits those project-specific costs from being shifted onto other utility customers through rates, riders, or surcharges. Before construction begins, the company would need to sign a binding cost-recovery agreement and provide financial security to cover those costs. If improper charges are passed along to customers, the bill requires refunds with interest within 90 days.

Water-related rules

For water service, the bill would require an independent assessment before a final water commitment is made to a covered data center. That assessment would need to show that enough water will remain available for households, agriculture, and existing businesses, including during drought conditions. The company would pay the water-related costs caused by the project, and the data center could not be given priority over households, hospitals, or schools during a water emergency.

The bill also says private wells, rural water systems, farmers, and ranchers would have the right to notice, monitoring, and compensation if a covered data center harms their water supply. It would prevent a data center from drawing from an already-overdrawn aquifer unless an independent assessment shows that doing so would not cause further harm, and it would require enforceable conservation measures tied to the data center’s water use.

Electric reliability rules

Before final electric service is committed, another independent assessment would have to show that the data center can be served without materially reducing reliability for existing customers. The bill also says communities have a right to know about any on-site power generation, and that such generation cannot be used to avoid cost, reliability, or emissions requirements.

Public notice and transparency

The bill would require at least 60 days’ notice and a local public meeting before a final decision is made on a covered data center. Relevant studies on cost, water, and reliability would have to be available at least 30 days in advance. Where required, the information would need to be provided in English and Spanish. Public officials and their family members involved in these decisions would also have to disclose financial interests related to the project.

Enforcement

Federal and state regulators would be able to audit compliance, order refunds, and assess civil penalties for violations. Workers who report violations would be protected from retaliation. Federal agencies would have to publish an annual public report on complaints, penalties, and refunds. The bill assigns enforcement to agencies including the Federal Energy Regulatory Commission, the Department of Energy, the Environmental Protection Agency, and the Department of Labor, within their existing areas of authority. It also says state, Tribal, and local governments keep their current powers over utility rates, water rights, land use, and permitting, and may adopt stronger protections if they choose.

Relevant Companies

None found