CAL.Regulation
California assigns data centers interconnection, transmission-upgrade, and stranded-cost risks
SB 886, the California Technology Innovation and Ratepayer Protection Act (Chapter 438), signed September 21, directs the Public Utilities Commission to establish interconnection and service tariffs for large data centers by January 1, 2028. Tariffs must prevent stranded costs and cost shifts to other customers, assign transmission upgrade costs to the data center, impose early termination fees for departures within ten years, and require utilities to publish maps of low-upgrade interconnection sites.
Enrolled text (California Legislative Information) → · Governor of California
Key points
- The PUC must establish or update interconnection and service tariffs for participating customers by January 1, 2028.California Legislative Information
- Transmission-level interconnection tariffs assign all transmission upgrade and usage costs to the data center customer.California Legislative Information
- An early termination fee applies to departures within 10 years of interconnection or failure to ramp load.California Legislative Information
- Interconnection cost refunds are capped at 75 percent of annual net transmission revenue from the customer.California Legislative Information
- Utilities must publish maps of sites where interconnection needs no major transmission upgrades.California Legislative Information
- Data centers seeking transmission service after January 1, 2027 may use exceptional-case contracts before tariffs exist; the act takes effect January 1, 2027.California Legislative Information
Sources2 articles across 2 outlets
California Legislative Information
Governor of California
Filed under
RegulationCal.SB 886 — California Technology Innovation and Ratepayer Protection ActEnergyFor practitionersFor governance