State lawmakers are advancing legislation that would require large electricity users — including data centers — to supply their own power rather than draw from Connecticut’s already strained electric grid.
House Bill 5469, introduced by the legislature’s Energy and Technology Committee, would require any electric customer with a peak demand of at least 50 megawatts to either contract with a “colocated electric supplier” — a generator physically connected behind the customer’s meter — or demonstrate it can supply the equivalent of its full anticipated load from a new generation source.
The proposal comes about a month after Gov. Ned Lamont signaled a potential policy shift in Connecticut’s approach to data center development when he told a joint session of the General Assembly that the state would “slow down new data centers, unless they add more generation as well.”
Rob Blanchard, the governor’s communications director, said the administration supports the legislature’s approach.
“Connecticut welcomes innovation and the growth of technologies, but we need to do so responsibly,” Blanchard said. “Large new energy users should bring new power generation with them, so we can grow our economy without driving up electricity costs for residents and small businesses.”
At the time of Lamont’s address, the governor’s office said no specific legislation had been drafted, though discussions were underway.
The newly published bill would take effect July 1, 2026, and would require the Public Utilities Regulatory Authority to launch a proceeding to implement the framework by Jan. 1, 2027.
Under the bill, generators that supply electricity directly to large customers — through a private connection that bypasses the public power grid — would need a license from the Public Utilities Regulatory Authority. They would have to produce enough electricity to cover 100% of the customer’s projected demand, plus a reserve margin set by regulators, using new generation that comes online on or after July 1, 2026. Suppliers would also have to file annual reports with PURA demonstrating compliance.
Large customers that connect to the grid rather than using a colocated supplier would face similar obligations under service agreements that electric distribution companies would be required to file with PURA by April 1, 2027.
The bill also includes significant financial protections for existing ratepayers. Large customers would be required to post financial guarantees covering at least 85% of their requested electric service for a minimum of 10 years, demonstrate their project is unique and not duplicative of other large load projects, and post deposits sufficient to protect ratepayers if the project scales back or shuts down.
Connecticut has struggled to attract large-scale data center investment, with only one company — Bloomfield-based insurer The Cigna Group — applying for the state’s data center tax incentive program since its creation in 2021. Several larger proposals, including a project tied to Millstone Nuclear Power Station in Waterford, have stalled.
PURA would retain discretion under the bill to waive certain requirements for colocated suppliers when it determines a waiver is in the best interest of ratepayers.
A public hearing on the bill is set for March 12.
