The Overview

Assembly Bill 2383, approved by the Governor on September 21, requires power providers to adopt rate plans for data-center electricity generation service by January 1, 2028. California's Assembly Bill 2383, the "Electricity: data centers" law, was signed by Gov. Gavin Newsom (D) on Sept. 21. ​

PG&E, California's largest utility, saw requests from data-center developers for power supplies rise by more than 40 percent in 2025, according to Reuters, while the Los Angeles Times reported that proposed AI data-center growth could nearly triple energy use in San José. Community choice aggregators and electric service providers must adopt a generation service tariff for data centers by Jan. 1, 2028.

What the Law Does

The law requires the California Public Utilities Commission (CPUC), the state body that regulates utilities and sets electricity rates, to require each electrical corporation to file transmission and distribution service tariffs and generation service tariffs for participating customers, as defined in the law. The bill would require utilities to file transmission, distribution, and generation service tariffs for participating customers, and would require community choice aggregators and electric service providers to adopt a generation tariff for data centers by January 1, 2028.

Assemblymember Rick Chavez Zbur, the bill's author, called it the "Fair Share in Energy Act" and said it helps ensure data centers pay their share of the costs of serving them. A violation of a CPUC order implementing the law is a crime under the existing Public Utilities Act.

Legislative Status

Asm. Rick Zbur sponsored the bill, and three co-authors joined him: Asm. Cottie Petrie-Norris, Asm. Rebecca Bauer-Kahan, and Asm. Greg Wallis. The bill first cleared an Assembly committee in April, with only one vote against it. A second Assembly committee approved it in May, again with only one vote against. The full Assembly then passed it by a wide margin in late May. The Senate passed it in late August, and the Assembly approved the Senate's changes the same day.

The BlueGreen Alliance said it supported AB 2383 and SB 886 to help ensure developers pay their fair share.

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