DATA Act of 2026

The term bulk-power system has the meaning given the term in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).

The term consumer-regulated electric utility or CREU means an electric generation and supply system that—

(A) is established—

(i) after the date of enactment of this Act; and

(ii) exclusively for the purpose of serving new electric loads that were not previously served by any retail electricity supplier;

(B) may own, construct, and operate facilities necessary for generation, energy storage, transmission, distribution, and the retail supply of electricity;

(C) may sell electricity at retail to eligible CREU customers, subject to the condition that the system is physically islanded from—

(i) all regulated utilities;

(ii) the bulk-power system; and

(iii) the Bulk Electric System (as defined by the Electric Reliability Organization);

(D) engages in any combination of—

(i) generating electricity;

(ii) transmitting electricity;

(iii) distributing electricity; or

(iv) selling electricity at retail to consumers;

(E) is not connected to the bulk-power system or any other electric transmission or distribution system for primary or backup supply; and

(F) operates independently of any public utility.

The term Electric Reliability Organization has the meaning given the term in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).

The term eligible CREU customer means any entity that—

(A) purchases electricity at retail from a consumer-regulated electric utility;

(B) receives electric service exclusively through facilities owned, constructed, or operated by consumer-regulated electric utilities; and

(C) is located within premises that are physically islanded from—

(i) all regulated utilities;

(ii) the bulk-power system; and

(iii) the Bulk Electric System (as defined by the Electric Reliability Organization).

The term reliability standard has the meaning given the term in section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).

(1) shall be exempt from regulation under the Federal Power Act (16 U.S.C. 791a et seq.), including with respect to—

(A) rate regulation;

(B) corporate or financial oversight;

(C) transmission or distribution regulation;

(D) reliability standards under section 215 of that Act (16 U.S.C. 824o);

(E) interconnection requirements;

(F) participation in regional transmission planning or cost allocation; and

(G) merger, consolidation, acquisition, or disposition approval under section 203 of that Act (16 U.S.C. 824b);

(2) shall not be considered to be a public utility for purposes of that Act;

(3) shall not be considered to be a part of—

(A) the bulk-power system; or

(B) the Bulk Electric System (as defined by the Electric Reliability Organization); and

(4) shall not be required to register with the Electric Reliability Organization or comply with reliability standards, unless the consumer-regulated electric utility voluntarily elects to connect to the bulk-power system.

Notwithstanding any other provision of law, a consumer-regulated electric utility that begins operations on or after the date of enactment of this Act shall be exempt from Federal regulation with respect to matters under the jurisdiction of the Federal Energy Regulatory Commission or the Secretary of Energy, including—

(1) all reliability standards; and

(2) all other standards, rules, regulations, or other requirements established, administered, or enforced under—

(A) section 215 of the Federal Power Act (16 U.S.C. 824o);

(B) any other provision of that Act; or

(C) any other provision of Federal law (including regulations).

For purposes of subsection (a), the date on which a consumer-regulated electric utility begins operations is the date on which the consumer-regulated electric utility first generates, transmits, distributes, or sells electricity.

If a consumer-regulated electric utility elects to connect to any portion of the bulk-power system or any other electric transmission or distribution system for primary or backup supply, the consumer-regulated electric utility shall, immediately on making that connection—

(1) cease being a consumer-regulated electric utility; and

(2) become subject to all Federal regulation applicable to the consumer-regulated electric utility from which the consumer-regulated electric utility was exempt under subsection (a).

Nothing in this section applies to a consumer-regulated electric utility (as defined in section 2 of the DATA Act of 2026).

A consumer-regulated electric utility (as defined in section 2 of the DATA Act of 2026) shall not be required to interconnect with, purchase from, or sell to an electric utility under this section.

(1) in the matter preceding paragraph (1), by striking Except and inserting the following:; and

Except

(2) by adding at the end the following:

No provision of this subtitle shall apply to any holding company solely by reason of its ownership or control of a consumer-regulated electric utility (as defined in section 2 of the DATA Act of 2026).

A consumer-regulated electric utility may construct and operate facilities within existing public rights-of-way, subject to the same permitting, restoration, and public-safety requirements applicable to a public utility (as defined in section 201(e) of the Federal Power Act (16 U.S.C. 824(e))).

Notwithstanding subsection (a), the review of an application for the construction or operation of a facility within an existing public right-of-way by a consumer-regulated electric utility shall be confined exclusively to the adequacy of—

(1) right-of-way restoration; and

(2) storm-response planning.