Energy Cost Fairness and Reliability Act of 2026
Sponsored By: Senator Schiff, Adam B. [D-CA]
Introduced
Summary
Clarify cost responsibility for large electric loads while standardizing and speeding how very large customers connect to the interstate grid. This bill would create a single federal framework for facilities over 50 megawatts and tighten payment, study, and reliability rules.
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- Developers of large loads, such as data centers, would have to pay 100 percent of interconnection study costs up front and bear all network upgrade costs via a non‑refundable payment, a structured surcharge, or another Commission-approved mechanism.
- The Federal Energy Regulatory Commission would be directed to issue final interconnection rules within one year and transmission providers would file tariff amendments within 180 days; the bill also forces stricter queue management and allows use of automation or AI to speed studies.
- The Commission must review cost-allocation to limit shifting upgrade costs to other customers while preserving State retail authority, and the Department of Energy would collect confidential data from data centers and set up an AI testbed at a National Laboratory within 180 days to study efficiency and grid impacts.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
Large loads pay transmission upgrades
If enacted, the bill would make a large load customer responsible for 100% of network upgrades that interconnection studies assign to that customer. Payments could be collected as a nonrefundable upfront fee, a structured surcharge over time, or another Commission-approved mechanism and could be included in transmission tariffs. Those costs could not be recovered from other transmission customers or credited against future transmission or retail charges. FERC would review cost-allocation methods and must consider downstream retail impacts, while State retail-rate authority would be preserved.
DOE AI data-center testbed
If enacted, the bill would require the Secretary of Energy to establish an AI data-center testbed at a National Laboratory within 180 days. The Secretary could require data-center operators to submit energy, water, commissioning, and AI-demand data under the Federal Energy Administration Act, with business-confidential data protected from public disclosure. The Secretary must report findings to Congress and FERC within 1 year, and FERC must consider the report within 180 days. DOE work would be separate from other Department supercomputing facilities and DOE help to transmission providers would be subject to appropriations.
New interconnection rules for large loads
If enacted, the bill would require the Federal Energy Regulatory Commission to issue final interconnection rules for "large loads" within 1 year. A "large load" would be any site with peak demand over 50 megawatts. The rules would require large loads to pay 100% of interconnection study costs and accept deposits, readiness payments, and withdrawal penalties. The rules would also require demand flexibility and binding curtailability agreements, let transmission providers offer non‑firm injection and withdrawal rights, and encourage queue automation and prioritization for flexible or public‑interest projects. Transmission providers would file tariff changes within 180 days of each final rule, and DOE could provide technical help subject to appropriations.
State control of retail electricity rates
If enacted, the bill would say the Federal Energy Regulatory Commission could not regulate retail electricity rates, charges, or service terms. State utility commissions would keep their existing authority over retail rates and terms of service. This provision would not change State retail-rate powers.
Sponsors & CoSponsors
Sponsor
Schiff, Adam B. [D-CA]
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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