The AI boom is powered by data centers that consume massive amounts of energy and water, putting enormous strain on California’s aging transmission grid and requiring huge investments into grid infrastructure.

In addition, the current rush to build AI data centers risks overbuilding, which could lead to bankruptcy. This means ratepayers might have to take over paying for what are known as “stranded assets” that the owners otherwise would have paid off over a number of years.

SB 886 – The California Technology Innovation and Ratepayer Protection Act – addresses both these issues.

• SB 886 requires the PUC to establish a special tariff to protect other ratepayers from transmission costs that supply large data centers while meeting the state’s climate goals.
• The tariff will also ensure electrical grid investments for data centers are fully recovered so that other ratepayers do not end up footing the bill.

Please write your California State Assemblymember and ask them to support SB 886, and urge them to tell Assembly Leadership to support the bill!

SB 886 made it through the CA Senate and will be heard in Assembly Utilities and Energy on 6/24. Let your Assemblymember know this bill will help all Californians.