DATA Act of 2026

Summary#

This bill creates a new type of electric utility called a consumer-regulated electric utility (CREU). A CREU must be formed after this law is passed and may serve only new electric loads that were not previously served by any retail electricity supplier. A CREU may own, build, and operate generation, storage, transmission, distribution, and retail supply facilities, but must be physically islanded from all regulated utilities, the bulk-power system, and the Electric Reliability Organization's Bulk Electric System. The bill says CREUs are exempt from the Federal Power Act and related federal regulation. Exemptions listed include rate regulation, corporate and financial oversight, transmission and distribution rules, reliability standards under section 215, interconnection requirements, regional planning or cost allocation requirements, and merger or acquisition approval under section 203. CREUs are not considered public utilities or part of the bulk-power system and do not have to register with the Electric Reliability Organization unless they voluntarily connect to the bulk-power system. The bill also exempts new CREUs from Federal Energy Regulatory Commission (FERC) and Department of Energy (DOE) requirements if they begin operations after the law takes effect; if a CREU later connects to the bulk-power system it immediately loses the exemption and becomes federally regulated. The bill adds CREUs to exclusions in the Public Utility Regulatory Policies Act (PURPA) and the Public Utility Holding Company Act (PUHCA) provisions described. Finally, CREUs may construct and operate facilities in existing public rights-of-way, subject to the same permitting, restoration, and public-safety requirements as public utilities, with local review limited to right-of-way restoration and storm-response planning.

What it means for you#

  • New, consumer-created electric systems can be set up to serve only new loads and must stay physically separate from the larger grid.
  • These CREUs would not be regulated under the Federal Power Act while islanded. That includes exemptions from federal rules about rates, reliability standards, interconnection, and regional planning.
  • Customers served exclusively by a CREU are defined as "eligible CREU customers" under the bill.
  • If a CREU connects to the broader grid for primary or backup supply, it immediately loses the exemption and becomes subject to federal regulation.
  • CREUs can build in public rights-of-way but must meet the same permitting, restoration, and safety requirements as public utilities; local review is limited to restoration and storm-response planning.

Expenses#

No publicly available information on federal costs or budgetary effects is included in the bill text. The bill does not contain specific funding or appropriation language.

Proponents' View#

No publicly available information in the bill text describes proponents' arguments or expected benefits. The metadata lists sponsors (Nicholas Begich, Dan Crenshaw, Burgess Owens) but no sponsor statements are included.

Opponents' View#

No publicly available information in the bill text describes opponents' arguments or expected concerns.