DATA Act of 2026
Sponsored By: Senator Cotton, Tom [R-AR]
Introduced
Summary
This bill would create a new utility model called consumer-regulated electric utilities (CREUs) that can own generation, energy storage, transmission, distribution, and sell electricity at retail to eligible customers. It would provide broad federal exemptions from the Federal Power Act, the Public Utility Regulatory Policies Act, and the Public Utility Holding Company Act while limiting those exemptions if a CREU connects to the bulk-power system.
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- New CREU operators: Allows entities formed after enactment to operate islanded from regulated utilities and the bulk-power system and to run generation, storage, wires, and retail supply.
- Households and businesses: Gives eligible customers the option to buy retail power from CREUs that remain separate from the wider grid.
- Regulators and grid reliability: CREUs would not be treated as public utilities or part of the Bulk Electric System (BES) and would be exempt from mandatory reliability registration and PURPA interconnection or purchase rules unless they elect to connect to the bulk-power system. Rights-of-way reviews for CREU facilities are narrowed to restoration and storm-response planning, and CREUs that connect to the broader grid would lose their exemptions.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Federal exemptions for consumer utilities
If enacted, the bill would exempt qualifying consumer-regulated electric utilities that begin operations after enactment from many federal rules. Exemptions would include reliability standards, rate and transmission oversight, certain merger and transaction approvals, and the obligation to follow PURPA section 210. The bill would also say that owning a CREU would not by itself trigger certain holding-company rules under PUHCA. But the exemptions end immediately if a CREU elects to connect to the bulk-power system or any other transmission or distribution system for primary or backup supply; once connected it would become fully subject to federal regulation.
New consumer-regulated electric utilities
If enacted, the bill would create a new type of electric system called a consumer-regulated electric utility. These utilities would only be allowed if they start after enactment and serve new electric loads not previously served. You would only be an eligible customer if you buy retail power from such a utility, are served only by its facilities, and your premises are physically islanded from other utilities and the bulk-power system. The bill would also say a utility "begins operations" when it first generates, transmits, distributes, or sells electricity. These rules decide who can be a CREU and who it may serve.
Right-of-way rules for consumer utilities
If enacted, the bill would let consumer-regulated electric utilities build and run facilities inside existing public rights-of-way. These utilities would have to meet the same permitting, restoration, and public-safety rules that apply to public utilities. But local review of a CREU application would be limited to right-of-way restoration and storm-response planning.
Sponsors & CoSponsors
Sponsor
Cotton, Tom [R-AR]
AR • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov