Ensuring data centers pay their fair share

(a) Data center defined Section 3 of the Federal Power Act (16 U.S.C. 796) is amended by adding at the end the following: (30) Data center The term data center means— (A) any facility that— (i) is behind a single point of interconnection; (ii) primarily contains electronic equipment used to process, store, and transmit digital information; and (iii) has a peak electricity demand of greater than 50 megawatts; or (B) any group of facilities— (i) that are behind a single point of interconnection; (ii) the majority of which primarily contain electronic equipment used to process, store, and transmit digital information; and (iii) that, in the aggregate, have a peak electricity demand of greater than 50 megawatts.. (b) Ensuring data centers pay their fair share The Federal Power Act is amended by inserting after section 223 (16 U.S.C. 824w) the following: 224. Ensuring data centers pay their fair share (a) Authority (1) In general Notwithstanding subsection (a) and subsection (b)(1) of section 201, and subject to subsection (d), the Commission shall, beginning on the date that is 90 days after the date of enactment of this section, have the sole authority to approve rates and charges for the retail sale of electric energy from a covered electric utility to a data center. (2) Just and reasonable requirement All rates and charges approved by the Commission pursuant to paragraph (1) shall be just and reasonable, and not unduly discriminatory or preferential. If the Commission finds, after a hearing held upon its own motion or upon complaint, that any rate or charge approved by the Commission is unjust or unreasonable, or unduly discriminatory or preferential, the Commission shall fix a new rate or charge that is just and reasonable and not unduly discriminatory or preferential. (b) Full allocation of costs Any rate or charge approved pursuant to subsection (a) shall include— (1) the full costs of constructing, upgrading, and expanding any transmission or distribution facility to facilitate the interconnection of data centers to the bulk-power system; (2) the full costs of constructing, upgrading, and expanding any transmission or distribution facility to ensure the reliability of the bulk-power system during periods of increasing demand for electric energy from data centers; and (3) the full costs of constructing, upgrading, and expanding any generating facility to facilitate the reliability of the bulk-power system during periods of increasing demand for electric energy from data centers. (c) Prohibition on cost-shifting No covered electric utility may shift the costs described in paragraphs (1) through (3) of subsection (b) onto their retail rates or charges for any customer other than a data center. (d) Inapplicability This section shall not apply within the area referred to in section 212(k)(2)(A). (e) Definitions In this section: (1) Commission The term Commission means the Federal Energy Regulatory Commission. (2) Covered electric utility The term covered electric utility means a person that sells electric energy, except— (A) an electric cooperative described in section 201(f); (B) an electric utility that is owned or operated by a State or political subdivision thereof; (C) the Tennessee Valley Authority; and (D) each Federal power marketing administration.. (c) Penalties The Federal Power Act (16 U.S.C. 792 et seq.) is amended— (1) in section 221, by inserting, the price of electricity sold to data centers at retail and inputs to such price, after sold at wholesale; (2) in section 307(a), by inserting, the sale of electric energy at retail to data centers, after at wholesale in interstate commerce; (3) in section 311, by striking and industrial and inserting data center, and industrial; and (4) in section 316A(b)— (A) by striking Any person who violates any provision of part II and inserting the following: (1) In general Any person who violates any provision of part II, except for section 224,; (B) by striking Such penalty and inserting the following: (2) Data center violations Any person who violates any provision of section 224 or any provision of any rule or order thereunder shall be subject to a civil penalty of not more than $10,000,000 for each day that such violation continues. (3) Assessment A penalty under this subsection; and (C) by striking In determining the amount of a proposed penalty, and inserting the following: (4) Penalty amount In determining the amount of a proposed penalty under this subsection,. (d) Conforming amendment Section 201(e) of the Federal Power Act (16 U.S.C. 824(e)) is amended by striking or 222 and inserting 222, or 224.