Electrical corporations: tariffs.

Senator Padilla's Ratepayer and Technological Innovation Protection Act directs the California Public Utilities Commission to establish a specialized electrical tariff system by July 2026 for new high-demand customers connecting to the transmission grid. The tariff applies to customers newly connecting at transmission-level service of at least 50 kilovolts with peak demand exceeding 50 megawatts, primarily targeting large-format data centers and similar facilities.

The measure requires the Commission to structure the tariff to prevent cost shifts to other ratepayers while promoting grid reliability and the state's emissions reduction goals. Key provisions mandate that eligible customers fully cover grid infrastructure costs even if operations cease, contribute to wildfire mitigation and environmental programs, and potentially install on-site energy storage systems. The Commission may also require these customers to meet their electricity needs through renewable and zero-carbon resources.

The bill's findings note California's role in technological innovation while acknowledging that rapidly expanding energy demand from artificial intelligence and data centers could affect grid stability and climate targets. By establishing specific interconnection requirements for new large-load customers, the measure aims to integrate growing electricity demand while maintaining existing ratepayer protections and environmental standards.