Senate Bill 1999, also known as the "Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act," aims to address the growing electricity demand from large-scale data centers, artificial intelligence facilities, and other energy-intensive operations in Tennessee. The bill establishes a framework for a Tennessee clean transition tariff (CTT) that allows these large users to voluntarily procure additional clean energy while ensuring that the costs do not shift to residential and small business customers. The legislation mandates that large energy-intensive users bear the costs of necessary grid upgrades and infrastructure improvements proportional to their energy consumption, thereby protecting smaller ratepayers from potential rate increases.

The bill outlines specific responsibilities for local power companies and the Tennessee Public Utility Commission (TPUC) in implementing the CTT. It requires local power companies to ensure that large users participate in the tariff and cover the costs of grid enhancements needed to accommodate their increased load. Additionally, the TPUC is tasked with annual reporting on the impacts of these large users on the electric grid and residential rates, ensuring transparency and accountability in the process. The act is set to take effect on July 1, 2026, and will apply to all new or expanded large energy-intensive users seeking electric service from that date forward.