Ratepayer Protection Act

This bill amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to introduce a new federal standard concerning electric service for large-load customers . A large-load customer is specifically defined as a non-residential electric consumer primarily operating information technology infrastructure and related systems, requiring a peak electric demand of 100 megawatts or more at a single site or campus. Under this standard, electric utilities must design rates for these large-load customers to recover the full, incremental cost of any generation, transmission, or distribution upgrades necessary to serve their load. This cost recovery requirement applies even if the customer terminates their contract or ceases purchasing electricity, ensuring that other ratepayers are not burdened by these specialized infrastructure investments. Furthermore, before undertaking any such upgrades, electric utilities are mandated to require large-load customers to provide financial assurances or contributions to cover the upgrade costs. State regulatory authorities and nonregulated electric utilities are required to commence consideration of this new standard within one year and complete their determination within two years of the bill's enactment, though states with comparable existing standards may be exempt from these obligations.