The US House cleared a Menendez-sponsored bill aimed at strengthening federal electric grid planning and transmission expansion to accommodate massive AI data center load growth.

A bill by U.S. Representative Rob Menendez (D-8) to strengthen electric grid planning in response to rapidly growing energy demand from AI data centers has cleared the House of Representatives.

Instagram photo. By John Heinis/Hudson County View

“Families across America are facing rapidly rising utility bills as a result of unprecedented strain on our power grids, including increased demand from AI data centers,” Menendez said in a statement. “I am pleased that our legislation has passed the House of Representatives and is one step closer to becoming law. We will continue working to lower energy costs for families, protect ratepayers, and ensure our electrical grid can meet growing needs.”

The Load Forecasting Enhancement Act was introduced in June by Menendez and U.S. Representative Troy Balderson (D-OH). The legislation directs the Federal Energy Regulatory Commission (FERC) to establish regions appropriate for studying electric load forecasting, followed by the formation of a joint board for each region.

“To protect Americans from higher electric bills and make sure our grid can keep up with rising demand, we need to plan ahead,” Balderson added. “The bipartisan Load Forecasting Enhancement Act gives states and utilities the tools they need to better understand future electricity demand and prepare for it. I applaud my House colleagues for supporting this practical legislation and helping make electricity reliable and more affordable for American families.”

The bill also requires FERC to report its findings and recommendations to Congress and encourages states to consider adopting improved forecasting procedures to support reliable, affordable electric service. In addition to directing FERC to develop recommendations for improving load forecasting, the legislation amends the Public Utility Regulatory Policies Act to encourage state consideration of those recommendations. Further, it seeks updates to the Policy and Conservation Act to promote greater accuracy, oversight, and transparency in utility forecasting practices.