Microsoft has proposed a ratepayer-protection tariff in Nevada.

The filing, proposed in May to the Public Utilities Commission (PUC) of Nevada, seeks to establish a statewide framework for allocating costs associated with AI-driven data center growth.

One of the more comprehensive proposals, the filing was framed as part of Microsoft’s Community-First AI Infrastructure initiative and in alignment with the Trump administration's ratepayer protection pledge, which Microsoft signed on to in March.

The proposed framework would see the state’s utility, NV Energy, identify and track substations, generation, and transmission facilities needed to serve a large-load customer on a customer-specific asset schedule. Subsequently, large-load users would be required to pay for their project-specific share of those investments, either through an upfront payment or a phased payment scheme.

Under the proposal, infrastructure that later provides broader grid benefits may be transferred into the rate base following commission approval, even if it was originally paid for by customers.

A new accounting mechanism would track assets from development through operation, while large customers would commit to service agreements that outline their expected demand profile and load ramp.

The framework requires customers to cover the cost of dedicated infrastructure and includes an exit charge should they disconnect before those investments are repaid.

The proposal also introduces a Bring Your Own Power pathway, enabling customers to secure third-party generation and have that capacity recognized in utility planning. Microsoft claims the measure could improve transparency and limit unnecessary grid expansion.

Projects entirely funded by developers could also qualify for a streamlined approval process, allowing regulators to make decisions within 60 days when no ratepayer cost recovery is sought.

The PUC will subsequently bring the proposal through evaluation, scenario modeling, and public comment before making a ruling on whether to adopt it.

Microsoft currently does not operate any data centers within Nevada. However, in April of last year, the firm acquired a plot of land in Reno for a potential hyperscale development.