(a) Except as otherwise provided in this section, a municipality or electric utility shall not pay, or otherwise absorb, the cost of electrical infrastructure incurred to serve a data center.
(b) An electric utility may assign or allocate a portion of the electric utility's costs associated with the cost of electrical infrastructure to general utility system improvements if:(1) The associated improvements include improvements beyond those necessary to deliver electric service to the data center;(2) The associated improvements may be used to deliver electric service outside the data center while continuing to provide the same electric service to the electric utility's existing customers;(3) The costs are incurred in connection with the repair, maintenance, or replacement of infrastructure for which a person other than the electric utility originally incurred the cost of electrical infrastructure; and(4) The assignment or allocation is made in accordance with the electric utility's contribution-in-aid-of-construction policies, or the electric utility's other policies or practices, governing the assignment or allocation of the costs.
(1) The associated improvements include improvements beyond those necessary to deliver electric service to the data center;
(2) The associated improvements may be used to deliver electric service outside the data center while continuing to provide the same electric service to the electric utility's existing customers;
(3) The costs are incurred in connection with the repair, maintenance, or replacement of infrastructure for which a person other than the electric utility originally incurred the cost of electrical infrastructure; and
(4) The assignment or allocation is made in accordance with the electric utility's contribution-in-aid-of-construction policies, or the electric utility's other policies or practices, governing the assignment or allocation of the costs.
(c) An electric utility may reimburse a data center owner or operator for the cost of electrical infrastructure incurred by the data center owner or operator if:(1) The reimbursement is made in accordance with the electric utility's standard policies or procedures;(2) The policies or procedures apply to customers receiving comparable service from the electric utility;(3) The policies or procedures are not exclusively applicable to data centers;(4) The policies or procedures do not result in more favorable reimbursement to the data center than to other customers receiving comparable service; and(5) The reimbursement does not cause existing customers to incur a rate increase.
(1) The reimbursement is made in accordance with the electric utility's standard policies or procedures;
(2) The policies or procedures apply to customers receiving comparable service from the electric utility;
(3) The policies or procedures are not exclusively applicable to data centers;
(4) The policies or procedures do not result in more favorable reimbursement to the data center than to other customers receiving comparable service; and
(5) The reimbursement does not cause existing customers to incur a rate increase.
(d) A municipality or electric utility is not liable to an individual or entity for refusing to honor an obligation that is void under this section.
(e) A data center may purchase and receive electric energy, capacity, or other related or ancillary services from an independent power producer located in this state. An independent power producer located in this state may generate, store, sell, or deliver electric energy, capacity, or other related or ancillary services to a data center through:(1) A direct interconnection behind the data center's meter if the data center does not take service from an electric utility;(2) A direct interconnection behind the data center's meter with the written approval of the applicable electric utility if the data center takes service from an electric utility; or(3) Access to transmission or distribution facilities owned or operated by one (1) or more electric utilities or the Tennessee valley authority.
(1) A direct interconnection behind the data center's meter if the data center does not take service from an electric utility;
(2) A direct interconnection behind the data center's meter with the written approval of the applicable electric utility if the data center takes service from an electric utility; or
(3) Access to transmission or distribution facilities owned or operated by one (1) or more electric utilities or the Tennessee valley authority.
(f) The activities authorized by subsection (e) are subject to applicable federal law.
(g) Except to the extent federal law provides otherwise, access to transmission or distribution facilities under subdivision (e)(3) is provided at the election of, and on terms and conditions established by, the owner of the transmission or distribution facilities.
(h) This section does not supersede an obligation imposed upon an electric utility by federal law or a binding order of a federal agency of competent jurisdiction.
(i) If this section conflicts with a term, condition, rate schedule, or requirement of the Tennessee valley authority, then the term, condition, rate schedule, or requirement of the Tennessee valley authority controls, and an electric utility is not required to comply with this section to the extent of the conflict.