H.R. 9777House119th Congress (2025-2027)In Committee

Protecting Ratepayers Act

AI-Generated Summary

Updated July 23, 2026 at 8:02 AM UTC

The Protecting Ratepayers Act would require large data centers—those using 5 megawatts of power or more and owned or planned by private companies—to obtain all of their electricity and water from on‑site or captive sources, rather than the public grid or water system. The rule applies to both existing facilities and new ones, with compliance required 180 days after the law takes effect, and is intended to shield utility ratepayers from costs associated with data‑center power and water use.

Key Provisions

Defines a “covered entity” as any private company that owns, operates, or plans to own a data center of 5 MW+ power demand.
Requires that, starting 180 days after enactment, covered entities cannot build, own, operate, or maintain a data center unless all energy (including backup) comes from on‑site or captive generation and all water (including backup) comes from on‑site or other non‑public sources.
Applies the requirement to both existing data centers (already operating) and new or planned data centers.
Gives legal effect to the President’s March 9, 2026 “Ratepayer Protection Pledge.”

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

July 20, 2026

View full timeline

HouseIntro Referral

Introduced in House

July 20, 2026

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

July 20, 2026

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued July 20, 2026

119th CONGRESS

2d Session

H. R. 9777

IN THE HOUSE OF REPRESENTATIVES

July 20, 2026

Mr. Donalds introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To require that new and existing data centers use off-grid power and water supplies, and for other purposes.

Short title

This Act may be cited as the Protecting Ratepayers Act.

Definitions

In this Act:

(1)

Covered entity

The term covered entity means a private company, or other private entity, that—

(A)

owns, operates, or maintains a data center; or

(B)

has plans to own, operate, or maintain a data center within the next 5 years.

(2)

Data center

The term data center means a data center, as defined in section 453(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(a)), with a power demand of 5 megawatts or more.

(3)

Existing data center

The term existing data center means a data center that has begun operations as of the date of enactment of this Act.

(4)

New data center

The term new data center means a data center or planned data center that is not yet operational as of the date of enactment of this Act.

Data center requirement for off-grid power and water supply

Beginning on the date that is 180 days after the date of enactment of this Act, a covered entity may not build, own, operate, or maintain a new data center or existing data center unless the data center derives all—

(1)

energy, including back-up energy, from a captive power plant, on-site power generation, or some other source or combination of sources separate from, and not deriving power from, the electric grid; and

(2)

water, including back-up water, from an on-site water source, or some other water source or combination of sources separate from, and not deriving water from, the public water system.

Ratepayer Protection Pledge

Proclamation of the President issued on March 9, 2026, titled Ratepayer Protection Pledge (91 Fed. Reg. 11439) shall have the full force and effect of law.