Zaffirini Bill Makes Data Centers Pay Their Own Transmission Costs

The text as introduced · 500 words

90R4296 CXP-D

By: Zaffirini
S.B. No. 33

A BILL TO BE ENTITLED

AN ACT

relating to the recovery of costs related to providing electricity

service to customers at a computational load site.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 35.004(c-1) and (c-2), Utilities Code,

are redesignated as Section 35.0041, Utilities Code, and amended to

read as follows:

Sec. 35.0041. INTERCONNECTION OF AND COST RECOVERY FROM

LARGE LOAD CUSTOMERS. (a) [ (c-1) ] The commission by rule shall

ensure that a large load customer who is subject to the standards

adopted under Section 37.0561 contributes to the recovery of the

interconnecting electric utility's costs to interconnect the large

load to the utility's system.

(b) [ (c-2) ] An electric cooperative or municipally owned

utility that has not adopted customer choice shall pass through to a

large load customer who is subject to the standards adopted under

Section 37.0561 the reasonable costs to interconnect the large load

in a manner determined by the electric cooperative or municipally

owned utility.

(c) This subsection applies only to costs not recovered

under Subsection (a) or (b). Notwithstanding Section 35.004, the

commission by rule shall establish a system to:

(1) ensure that transmission costs of service

attributable to a customer receiving electricity service at a

computational load site are allocated to a separate transmission

cost of service rate class composed only of that type of customer;

and

(2) require each electric utility that provides

distribution service to a customer described by this subsection to

use a rate mechanism established by the commission for the purposes

of Subdivision (1).

(d) For purposes of Subsection (c), "computational load

site" means one or more buildings, structures, or installations at

a single location that:

(1) primarily contains information technology

infrastructure used for:

(A) creating, executing, and delivering software

applications and services;

(B) artificial intelligence training,

deployment, and delivery;

(C) adding virtual currency transactions to a

distributed ledger; or

(D) other computational activities at a data

center; and

(2) is supplied through electrical equipment that is

connected to the bulk power system.

(e) In this section, "virtual currency" has the meaning

assigned by Section 12.001, Business & Commerce Code.

(f) The system established under Subsection (c) may include

requirements that customers subject to that subsection pay minimum

demand charges, operate under contract terms specified by the

commission, or meet any other requirements the commission

determines necessary to ensure that transmission costs of service

attributable to those customers are not paid by other customers.

SECTION 2. The Public Utility Commission of Texas shall

adopt or revise rules as necessary to implement the changes in law

made by this Act not later than September 1, 2028.

SECTION 3. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2027.