CAL.Regulation
California orders utility-rate review so data centers bear grid costs
SB 1168 (Chapter 440), signed September 21, requires the Public Utilities Commission, in a new or existing proceeding, to assess rate-structure opportunities ensuring data centers pay a reasonable share of transmission and distribution costs, their proportionate share of load increases and procurements, consistent with integrated resource planning. The review must also alleviate cost pressures on residential ratepayers, including CARE and FERA program customers.
Enrolled text (California Legislative Information) → · Governor of California
Key points
- Chapter 440, Statutes of 2026; signed September 21, 2026.Governor of California
- The PUC must assess rate structures so data centers pay a reasonable share of transmission and distribution costs.California Legislative Information
- Data centers must bear their proportionate share of load increases and resulting procurement costs.California Legislative Information
- The review must be consistent with integrated resource planning.California Legislative Information
- The review must also alleviate cost pressures on residential ratepayers, including CARE and FERA customers.California Legislative Information
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California Legislative Information
Governor of California