AN ACT relating to data centers.

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AN ACT relating to data centers. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS CHAPTER 278 IS CREATED TO 3
READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Contract" means the service agreement between a retail electric supplier 6
and a customer that owns or operates a data center; 7
(b) "Contract capacity" means the mutually agreed amount of monthly peak 8
load requirements for each month during the remaining term of the 9
contract after the load ramp period has expired; 10
(c) "Data center" means: 11
1. A qualified data center project that has been approved for a certificate 12
of exemption under KRS 139.499; or 13
2. A centralized facility that: 14
a. Is used primarily or exclusively for electronic information 15
services, including but not limited to the mining of 16
cryptocurrency and the management, storage, processing, and 17
dissemination of electronic data and information through the 18
use of computer systems, servers, networking equipment, and 19
related components; and 20
b. Has electrical load that is either fixed, portab le, or distributable, 21
including but not limited to structures that are not affixed to the 22
ground or are easily removed from a location; 23
(d) "Data center customer" means a customer of a retail electric supplier that 24
owns or operates, or proposes to own or o perate, a data center or who is 25
otherwise responsible for paying for electric service for a data center; 26
(e) "Existing load" means data center electrical load for which a letter of 27
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agreement or electric service agreement was signed prior to the effective 1
date of this Act; 2
(f) "Load ramp period" means the time of commencement of electric service 3
until the customer reaches full contract capacity; 4
(g) "New load" means data center electrical load for which a letter of 5
agreement or electric service agreement was not signed prior to the effective 6
date of this Act; and 7
(h) "Total aggregated customer contract capacity" means all new loads of fifty 8
(50) megawatts or more for affiliated companies and companies with 9
common ownership of a data center that are in the sam e service territory of 10
the data center. 11
(2) A retail electric supplier shall not provide service to a data center customer that 12
has a total aggregated customer contract capacity of greater than one hundred 13
(100) megawatts unless it has filed, and the commi ssion has approved, a tariff or 14
contract with minimum data center service requirements, including but not 15
limited to requirements relating to: 16
(a) Minimum contract durations; 17
(b) Early contract termination fees; 18
(c) Load ramp period terms; and 19
(d) The provision of financial assurances by data center customers. 20
(3) The requirements of this section shall not apply to a data center customer with 21
existing load above one hundred (100) megawatts that has already signed a letter 22
of agreement or electric service ag reement prior to the effective date of this Act. 23
However, a data center customer with exempt existing load that expands by more 24
than one hundred (100) megawatts above the contracted capacity under its 25
existing or a new electric service agreement following the effective date of this 26
Act shall be subject to the requirements of this section with regard to the 27
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expansion. 1
(4) The commission shall not approve a tariff filed pursuant to this section unless the 2
record of the proceeding at which the tariff is considered demonstrates that: 3
(a) All capital and operating costs for new generation, transmission, or 4
distribution facilities built to serve the data center exclusively are assigned 5
to the data center customer on an incremental cost basis; 6
(b) Any costs for new facilities that provide a shared benefit to other customer 7
classes are allocated proportionally, to ensure that the data center customer 8
pays its average embedded cost share, plus any additional incremental costs 9
necessary to meet the specific reliability or capacity needs of the data center 10
load; and 11
(c) Any allocation of shared data center costs to other customer classes does 12
not result in any greater adverse impact on the rates or service for those 13
other customer classes than would have existed had the data center not 14
connected to the system. 15
Section 2. This Act may be cited as the Kentucky Ratepayer Protection Act. 16