Morning Business Report: Data center utility protection bill stalls in Senate as health insurance costs rise
A bipartisan proposal designed to protect consumers from electricity costs associated with new data centers has stalled in the U.S. Senate.
(LILAMAX)- A bipartisan proposal designed to protect consumers from electricity costs associated with new data centers has stalled in the U.S. Senate.
The Ratepayer Protection Act passed the House 417-3 Wednesday before an attempt to pass it by unanimous consent in the Senate was blocked Thursday. The legislation would require states to consider standards aimed at having large electricity users, including data centers, cover the additional infrastructure costs needed to connect them to the power grid.
Some lawmakers and consumer advocates argue the measure does not go far enough because it requires states to consider the standards rather than directly requiring technology companies and other large power users to cover those costs. Sen. Martin Heinrich of New Mexico instead pushed his GRID Savings Act, which would impose stronger requirements on large-load customers.
Meanwhile, small and mid-sized employers are confronting significant increases in health insurance costs.
A new eHealth survey of more than 500 owners and managers of businesses with 500 or fewer employees found 54% of employers offering group health insurance face premium increases of at least 10% for 2027. More than one in five reported increases of at least 15%.
Among employers facing increases, 80% said they were surprised by their size. The survey found 73% are considering dropping traditional group health benefits in 2027, while 58% are already pursuing alternative insurance arrangements.
On Wall Street, stocks rebounded Thursday following Wednesday’s losses after the Federal Reserve raised interest rates for the first time in more than three years. The Dow gained 0.6%, the S&P 500 rose 1.1% and the Nasdaq climbed 1.7%. Oil prices also declined Thursday.
In the entertainment industry, Paramount Skydance is considering moving operations out of California amid its legal battle over a proposed merger with Warner Bros. Discovery.
CEO David Ellison has raised the possibility of relocating operations if the antitrust dispute is not resolved. California Attorney General Rob Bonta and a coalition of states are seeking to block the proposed $111 billion deal, while court-ordered settlement talks are planned. Reports have also identified Tennessee as one of the states interested in attracting Paramount, but the company has not announced that it is officially leaving California.
And McDonald’s is working with franchisees on a new long-term value strategy after posting its slowest U.S. sales growth in more than a year.
The company is also developing a short-term plan featuring temporary menu items and digital deals while the longer-term strategy is developed. U.S. same-store sales grew 0.8% last quarter, according to a report citing Bloomberg.
