SB 2128

This bill requires the owner or operator of a data center, including a proposed data center or an existing data center seeking expansion, to pay for the full cost of infrastructure needed to support the data center, including expansions or upgrades to existing utility infrastructure necessary to both support the proposed or existing data center and continue providing the same services to the u tility's existing customers. However, this provision does not prohibit a local government, the state, or a utility from entering into an agreement regarding infrastructure needed to support the data center as long as the agreement does not allow the cost of infrastructure to be paid for by an entity or individual other than the owner or operator of the data center. This bill requires an electric utility to do both of the following :  Conduct the electric utility's ratemaking to ensure that the cost of infrastructure needed to support provision of electric services to a data center, including a proposed data center or an existing data center seeking expansion, and provision of electric services to such data center, is paid solely by the owner or operator of the data center .  Not raise the rate charged to residential customers or other commercial or industrial customers due to increased electric demand caused by a proposed data center, existing data center, or expansion of an existing data center. This bill prohibits an electric utility from distribut ing the cost, or otherwise requir ing an affected electric membership or power distribution group or organization to pay, for the cost of infrastructure or electric demand caused by a proposed data center, existing data center, or expansion of an existing data center. However, a n electric utility may create a new customer class for a data center if necessary to effectuate this bill . Before an electric utility imposes a rate increase, the electric utili ty (i) must make a written finding that the rate increase is not attributable to the data center and (ii) must make the written finding publicly available. This bill authorizes a residential or other commercial or industrial customer, or electric membership or power distribution group or organization, that believes that an electric utility has violated this bill to submit a complaint in accordance with either of the following:  If the electric utility is an electric cooperative or public electric utility, to the Tennessee public utility commission .  If the electric utility is a county-owned, municipal-owned, or metropolitan-owned utility that provides electric services to the public, to the utility's governing board, or, if there is no designated governing board for the utility, to the local government that owns or operates the electric utility. This bill applies to conduct occurring and contracts or agreements entered into, amended, or renewed on or after January 1, 2027 .