CaliforniaCalifornia law requires large data centers to pay their own electricity costs under new tariffs
A new California law requires electric utilities and other power sellers to set special rates for large data centers, so other customers do not pay extra costs for serving them.
What it does
Large data centers would have to pay a reasonable share of wildfire, electrification, and environmental costs through their electric delivery rates.
Data centers above a size set by regulators, no higher than 25 megawatts, would pay the added power costs of serving them, through a payment plan of at least 10 years.
Community choice aggregators and other electric service providers must adopt similar data center rates by January 1, 2028.
Argument forMaking data centers cover their added power costs could help keep other households' and businesses' electric bills from rising to serve them.
Argument againstCollateral, fees, and 10-year payments might make some data center projects costlier to start, and could discourage new data centers.
More detail
The Public Utilities Commission must require each investor-owned electric utility to file a delivery rate, called a tariff, that makes data centers pay a reasonable share of wildfire, electrification, environmental, and other societal costs. It covers data centers that are tariffed under the law and electric utilities other than electric cooperatives. The requirement applies to the extent federal law permits.
Utilities must file a power generation rate that makes data centers pay the extra costs of power bought for them, so other customers do not carry stranded costs. The payment plan must last at least 10 years and include fees for data centers that do not finish connecting or end service early, upfront collateral or prepayment, and a minimum payment based on projected load. Data centers could lower the payment by installing zero-emissions resources behind their meters. The Commission sets a minimum peak demand level for the rate, no higher than 25 megawatts. The rate does not apply to publicly funded research, public safety, publicly funded national security, publicly owned, or utility facilities.
Community choice aggregators and electric service providers must adopt their own data center generation rate with similar protections. The rate must keep added costs for serving data centers from raising other customers' rates, and the Commission is not given power to regulate these providers' rates. The size threshold may not be higher than 25 megawatts. The rates must be adopted on or before January 1, 2028.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 21Chaptered by Secretary of State - Chapter 435, Statutes of 2026.Latest
- Sep 21Approved by the Governor Gavin Newsom.Became Law
- Sep 15Enrolled and presented to the Governor at 3 p.m.To Governor
- Sep 1
- Vote recorded AB 2383 ZBUR Concurrence in Senate Amendments. Result: pass.Lower
- Aug 31Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 67. Noes 2. Page 7066.).Major
- Vote recorded 3rd Reading AB2383 Zbur et al. By Allen. Result: pass.Upper
- Aug 31Assembly Rule 63 suspended. (Page 7066.)
- Aug 31In Assembly. Concurrence in Senate amendments pending.
- Aug 31Read third time. Passed. Ordered to the Assembly. (Ayes 28. Noes 9.).Passed Senate
- Aug 30Read second time. Ordered to third reading.Minor
- Aug 28Read third time and amended. Ordered to second reading.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 13From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 13).Major
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 2Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 1From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 4.) (June 30).Major
- Jun 30
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 15From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E., U & C.Major
- Jun 10Referred to Com. on E., U & C.Minor
- May 28In Senate. Read first time. To Com. on RLS. for assignment.Minor
- May 27Read third time. Passed. Ordered to the Senate. (Ayes 69. Noes 3. Page 5462.)Passed Assembly
- Vote recorded AB 2383 Zbur Assembly Third Reading. Result: pass.Lower
- May 22Read third time and amended. Ordered to third reading. (Page 5274.)Major
- May 18Read second time. Ordered to third reading.Minor
- May 14From committee: Do pass. (Ayes 12. Noes 1.) (May 14).Minor
- Vote recorded Do pass. Result: pass.Lower
- May 14Joint Rule 62(a), file notice suspended. (Page 5030.)
- May 13In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- Apr 14Re-referred to Com. on APPR.Minor
- Apr 13Read second time and amended.Major
- Apr 9From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 16. Noes 1.) (April 8).Major
- Apr 8
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Mar 9Referred to Com. on U. & E.Minor
- Feb 21From printer. May be heard in committee March 23.
- Feb 20Read first time. To print.Introduced
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