Connecticut House Bill HB05926

Connecticut 2025 Regular Session

• Introduced: 1/22/25
• Refer: 1/22/25

Caption

An Act Implementing A Surcharge On Electricity Consumed By Data Centers.

Impact

The introduction of this surcharge on data centers may have far-reaching implications for energy policy in the state. As data centers are known for their heavy electricity use, the bill targets a specific segment of the economy that has grown significantly in recent years. With the revenue generated from this surcharge, there is a possibility of lowering costs for residential electric utility users while also reinforcing the state's commitment to offsetting the environmental impacts stemming from increased energy consumption by these facilities.

Summary

House Bill 05926 proposes to implement a surcharge on the electricity consumed by data centers operating within the state. The significant feature of this bill is the intent to generate revenue that will be utilized to cover the Combined Public Benefits Charge reflected on electric utility bills for residential customers. This move aims to alleviate some of the financial pressures of public benefits contributions for homeowners, potentially redistributing some costs associated with energy consumption.

Contention

Notably, the bill may incite debates regarding fairness and the economic impact on data centers. Proponents argue that since data centers contribute to higher collective energy use, it is equitable that they contribute more towards the costs associated with public benefits. Conversely, critics may argue that imposing such a surcharge could deter data center investments and development in the state, potentially impacting job creation and economic growth in the technology sector. Thus, balancing the need for sustainable practices against economic growth will remain a critical discussion point as the bill is considered.