SANTA FE, N.M. — New Mexico Attorney General Raúl Torrez is spearheading a multistate coalition urging the Federal Energy Regulatory Commission (FERC) to ensure that proposed rules for connecting large data centers to the power grid do not shift infrastructure costs onto residential consumers and small businesses.
In a letter sent to FERC Chair Laura V. Swett, Torrez and the coalition stressed that while economic growth and technological innovation are important, they should not come at the expense of ratepayers. The attorneys general called on FERC to respect state authority over utility rates and prevent policies that would allow energy-intensive data centers to pass costly grid upgrades onto consumers who receive no direct benefit.
“As attorneys general, we have a responsibility to protect the public interest and ensure that families and small businesses are not forced to subsidize grid upgrades driven solely by data center energy demands,” New Mexico Attorney General Raúl Torrez said. “States have long held the authority to oversee utility rates and protect consumers, and federal rulemaking should reinforce—not undermine—that role.”
“We’ve already seen how the Trump administration has unlawfully forced the J.H. Campbell coal plant right here in Michigan to stay open under the guise of its fake energy emergency,” said Michigan Attorney General Dana Nessel. “Now, the Department of the Interior is bypassing essential environmental regulations simply to pad Big Oil’s profits. My office will continue pushing back against these illegal actions and defending the rule of law.”
The letter highlights concerns that large energy users, such as data centers, often trigger costly upgrades to local and regional power grids. States and public utility commissions are already taking measures to ensure these costs are assigned fairly, rather than being absorbed by general ratepayers.
The coalition emphasized the longstanding division of authority between the federal government and the states, noting that FERC oversees interstate transmission while states maintain primary control over distribution rates and consumer protections.
FERC plans to issue rules on large data center connections in April 2026. The coalition urged the Commission to coordinate closely with states to ensure new policies do not interfere with state-led efforts to keep utility rates reasonable.
Joining New Mexico in the effort are the attorneys general of Arizona, Delaware, the District of Columbia, Maine, Michigan, Nevada, Rhode Island, and Washington.
