To amend the Public Utility Regulatory Policies Act of 1978 to establish Federal standards relating to the recovery of the full, incremental costs of upgrades that serve large-load customers, and to withhold highway funds from States that do not implement such standards, and for other purposes.

On September 8, 2026, Rep. Subramanyam (D-VA-10) introduced HR10322, a bill to amend the Public Utility Regulatory Policies Act of 1978. The bill establishes a federal standard requiring state utility commissions to allow utilities to recover the full incremental costs of grid upgrades that serve large-load customers (e.g., data centers, industrial plants). States that fail to implement this standard risk losing federal highway funding. The bill was referred to the House Committees on Energy and Commerce and Transportation and Infrastructure. As of September 9, 2026, it has zero cosponsors and no scheduled markup, placing it at an early, low-momentum stage.

The money trail is indirect: the bill does not authorize or appropriate any federal funds. Instead, it uses a regulatory penalty mechanism—withholding highway funds—to compel state-level action. The economic impact flows through reduced regulatory uncertainty for utility capital investments. Utilities currently face risk that state commissions may disallow a portion of grid upgrade costs, especially for projects benefiting specific large-load customers. This bill would mandate full cost recovery, effectively lowering the cost of capital for such investments and potentially accelerating grid modernization for data center and industrial demand.

Convergence with recent presidential actions strengthens the narrative. On September 8, 2026, the President issued a proclamation adjusting delegations under the Defense Production Act, signaling acceleration of domestic energy production and infrastructure. On August 26, 2026, an executive order declared a national emergency to secure the U.S. bulk-power system, tightening supply chains for grid equipment. Both actions share the objective of strengthening grid infrastructure for reliability and national security. HR10322 complements these by addressing the financial mechanism for grid upgrades, creating a coherent policy push: secure supply chains (executive order), prioritize domestic production (DPA), and ensure cost recovery (bill).

Structural winners are investor-owned utilities with significant exposure to large-load interconnection demand. NextEra Energy ($NEE) benefits through its competitive arm in ERCOT, PJM, MISO, and SPP, as well as its regulated Florida subsidiary (FPL). Duke Energy ($DUK) and Southern Company ($SO) operate in non-RTO Southeast states where data center demand is surging; the federal standard would override any local commission resistance. American Electric Power ($AEP) spans multiple RTOs and states, making it a direct beneficiary of harmonized cost recovery. Grid equipment manufacturers like GE Vernova ($GEV) would see indirect demand increases, but the causal chain is too weak for inclusion at this stage.

Timeline: The bill must clear two House committees, pass the full House, then the Senate, and be signed by the President. Given the 119th Congress is halfway through (2026), and the sponsor is a junior member with no cosponsors, passage in this Congress is unlikely. However, the bill could serve as a marker for future energy infrastructure legislation. Investors should monitor for cosponsor additions, committee hearings, or inclusion in broader energy bills.