CAL.Regulation
California requires utilities to file data-center electricity tariffs covering their share of wildfire and program costs
California enacted AB 2383 (Chapter 435) on September 21, 2026, directing the Public Utilities Commission to require each electrical corporation to file transmission-and-distribution and generation tariffs for data centers. The tariffs ensure data centers pay their share of wildfire mitigation, wildfire liability, electrification, and environmental program costs, with a minimum 10-year payment mechanism including collateral, early-termination fees, and minimum-load cost recovery so other ratepayers are held harmless. The act takes effect January 1, 2027.
Enrolled text (California Legislative Information) →
Key points
- PUC must order each electrical corporation to file transmission-and-distribution and generation service tariffs for data centersCalifornia Legislative Information
- Tariffs must ensure data centers pay a reasonable share of wildfire mitigation, liability, electrification, and environmental costsCalifornia Legislative Information
- Generation tariffs must include a minimum 10-year payment mechanism with upfront collateral or prepayment and early-termination feesCalifornia Legislative Information
- A minimum-load cost-recovery mechanism ensures other ratepayers are held harmless if data centers use less than projected loadCalifornia Legislative Information
- The commission may set the peak-demand threshold no higher than 25 megawatts; community choice aggregators must adopt equivalent tariffs by 2028California Legislative Information
- Signed September 21, 2026 as Chapter 435, Statutes of 2026; the act takes effect January 1, 2027.California Legislative Information
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California Legislative Information