Electrical corporations: tariffs.

Senator Padilla's Ratepayer and Technological Innovation Protection Act directs the California Public Utilities Commission to establish specialized electrical tariffs for large-scale energy consumers, particularly data centers, while protecting existing ratepayers from cost increases. The legislation requires the Commission to create new rate structures by December 2026 for customers connecting at least 50 kilovolts with peak demands exceeding 50 megawatts.

The bill mandates that these tariffs ensure just rates, promote rate stability, and recover grid investment costs if facilities cease operations. New interconnection applicants must meet specific criteria, including employing energy storage systems, reducing greenhouse gas emissions, and contributing to grid reliability. The provisions exclude existing customers transitioning from fossil fuels to electricity and those primarily focused on transportation electrification.

The Commission must assess how data centers' energy demands affect costs for other utility customers, analyzing expenses related to procurement and infrastructure. This evaluation, due by January 2027, must examine potential cost shifts and identify mitigation strategies. The assessment requirement expires in 2031 unless extended by subsequent legislation.