On February 4, 2026, New Mexico Attorney General Raúl Torrez led a multistate coalition of attorneys general in calling on the Federal Energy Regulatory Commission (FERC) to ensure that proposed rules regarding data center connections to the power grid do not unfairly shift infrastructure costs onto residential consumers and small businesses. The coalition addressed a letter to FERC Chair Laura V. Swett, emphasizing concerns about affordability for ratepayers.
The issue is significant as technological innovation and economic growth can lead to increased energy demands from large data centers, potentially resulting in costly upgrades to local and regional power grids. According to the press release, the attorneys general urged FERC to respect state ratemaking authority and avoid federal policies that would allow these costs to be passed on to consumers who do not benefit from such upgrades.
“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 (…) States have long held the authority to oversee utility rates and protect consumers, and federal rulemaking should reinforce—not undermine—that role,” according to Attorney General Torrez.
The letter highlights ongoing efforts by states and public utility commissions across the country aimed at ensuring fair assignment of costs related to large load users. The attorneys general also noted the longstanding division of authority between federal oversight of interstate transmission by FERC and state responsibility for regulating distribution rates and consumer protection.
As FERC prepares for its planned April rulemaking on large data center connections, the coalition called for close collaboration with states. They said new policies should not interfere with state-led efforts designed to keep utility rates reasonable and affordable. Attorneys general from Arizona, Delaware, the District of Columbia, Maine, Michigan, Nevada, Rhode Island, and Washington joined New Mexico’s effort.
The New Mexico Attorney General serves as the chief legal officer for the state of New Mexico (official website). The office seeks to protect consumers, support law enforcement, uphold the rule of law (official website), foster trust through community outreach initiatives (official website), provide services statewide (official website), advance justice through civil litigation and criminal prosecutions (official website), and coordinate with local law enforcement agencies for public safety efforts (official website).
