CAL.Regulation
California requires utility tariffs shielding ratepayers from data-center costs
California enacted the California Technology Innovation and Ratepayer Protection Act (SB 886, Chapter 438, Statutes of 2026), directing the Public Utilities Commission to establish or update tariffs for data center interconnection and retail service by January 1, 2028. Transmission-level data centers must disclose parallel applications elsewhere, bear full transmission upgrade costs and pay early-termination fees if they leave within 10 years. Utilities must publish maps of sites that can interconnect without major upgrades. It takes effect January 1, 2027.
Enrolled text (California Legislative Information) →
Key points
- Chapter 438, approved September 21, 2026; majority-vote bill effective January 1, 2027.California Legislative Information
- Commission must establish or update tariffs by January 1, 2028, preventing cost shifts to nonparticipating customers.California Legislative Information
- Data centers must disclose whether the same facility applied for interconnection in other territories or jurisdictions.California Legislative Information
- Participating customers bear full responsibility for transmission upgrades and load-based generation costs.California Legislative Information
- Departing within 10 years triggers an early-termination fee no less than the revenue gap.California Legislative Information
- Exceptional-case contract filings authorized for agreements between January 1, 2027 and tariff approval.California Legislative Information
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California Legislative Information
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RegulationCal.SB 886 (Padilla) - California Technology Innovation and Ratepayer Protection Act (2026)EnergyEnvironmentalFor governanceFor vendors