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Senate Bill Allows Exemption of Isolated Electric Utilities from FERC and DOE Regulations

DATA AND AI INFRASTRUCTURE

A Senate bill proposes the establishment of consumer-regulated electric utilities (CREUs) that can serve new electric loads, provided they are physically isolated from the bulk power grid and other utilities. This bill exempts CREUs from Federal Energy Regulatory Commission (FERC) oversight, including regulations on rates, reliability, and regional transmission planning.

Exemptions will cease if a CREU connects to the grid, but they must still comply with environmental and zoning laws. The bill aims to address concerns that data centers could raise electric rates for other consumers by allowing them to operate independently.

The Data Center Coalition has not commented on the bill, which mirrors a law signed by New Hampshire's Governor Kelly Ayotte last summer. Critics are wary of the bill's narrow scope despite its potential to foster competition and innovation.

Senate Bill Allows Exemption of Isolated Electric Utilities from FERC and DOE Regulations
Jan 13, 2026, 2:33 PM

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