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 by July 2026, addressing the growing power demands of artificial intelligence and data center operations. The new tariffs would apply to customers requiring transmission-level service of at least 50 kilovolts and an estimated demand of 50 megawatts or greater.

The legislation outlines specific requirements for these tariffs, including provisions to maintain reasonable rates without shifting costs to other customers, reduce greenhouse gas emissions from electrical generation, and ensure grid reliability through predictable supply and voltage support. The Commission would gain authority to require eligible customers to install distributed energy storage and backup power systems. Additionally, the bill enables the Commission to set minimum zero-carbon procurement standards for retail sellers serving these high-demand customers.

The measure includes safeguards to protect existing infrastructure investments, requiring full cost recovery from eligible customers who reduce operations or cease activities. For customers receiving transmission-level service, the tariffs must incorporate appropriate contributions toward wildfire mitigation, environmental programs, and other societal costs typically included in distribution rates. The bill's findings note that while increased energy consumption from large-load customers could potentially reduce electricity rates through economies of scale, proper management is essential to prevent stranded assets and protect California's climate objectives.