Rep. Cervania files bill in North Carolina House to protect ratepayers from data center costs

A new bill filed by State Rep. Maria Cervania in the North Carolina House seeks to prevent public utilities from passing commercial data center costs onto ratepayers and proposes a special commission for data center planning, according to the North Carolina State House.

The bill, filed as HB 1002 on April 10 during the 2025 regular session, was formally listed with the short title: ‘Rate Payer Protection Act.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, the bill, titled the Rate Payer Protection Act, prohibits public utilities from passing costs related to serving commercial data centers onto ratepayers. These costs include those associated with increased fuel requirements, generation, and grid upgrades for data centers with a peak demand of 100 megawatts or more. Instead, utilities may recoup these expenses from the data centers themselves or prorate charges based on their electric demand. Additionally, the bill establishes a 14-member Special Commission for Data Center Planning to evaluate and make recommendations on grid and energy supply improvements, data center locations, and industry trends, with the commission set to expire on June 30, 2027. The act takes effect upon becoming law.

Of the three sponsors of this bill, Pricey Harrison proposed the most bills (53) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Cervania graduated from the University of California at Berkeley with a BA.

Cervania, a Democrat, was elected to the North Carolina State House in 2023 to represent the state’s 41st House district, replacing previous state representative Gale Adcock.