PUC Votes To Develop Rulemaking To Modernize Electric Interconnection Regulations; Proposed Rule Due In March

On December 18, the Public Utility Commission voted 5-0 to advance the development of a Notice of Proposed Rulemaking (NOPR) aimed at modernizing the Commission’s electric interconnection regulations to reflect today’s evolving energy landscape.

The motion offered by PUC Vice Chair Kimberly Barrow directs the PUC’s Law Bureau, in consultation with the Bureau of Technical Utility Services, to develop a proposed rulemaking that would conduct a universal review of interconnection regulations, including how new electric load, upgrades to existing load, and distributed energy resources are connected to the distribution system.

The initiative builds on the Commission’s earlier work responding to Federal Energy Regulatory Commission (FERC) Order 2222, which opened wholesale electricity markets to distributed energy resources, while recognizing that Pennsylvania’s interconnection rules serve a broader range of purposes beyond wholesale market participation.

“At the end of the day, this work is about giving Pennsylvanians clarity and confidence as they navigate a rapidly changing energy system,” said Vice Chair Kimberly Barrow. “Whether a family is adding new electric equipment, a small business is expanding, or a community is exploring new energy technologies, clear and modern interconnection rules help ensure those investments can move forward safely, fairly, and with the consumer in mind.”

Why This Matters

Pennsylvania’s current interconnection regulations were adopted in 2006 as part of the Commonwealth’s implementation of the Alternative Energy Portfolio Standards (AEPS) Act. 

While those rules helped support early growth in alternative energy, the PUC noted that significant changes in technology, load growth, and grid use over the past two decades warrant a comprehensive update.

Among the issues the proposed rulemaking is expected to examine:

-- Modern energy technologies: Existing interconnection rules focus on alternative energy systems as defined under the AEPS Act and do not fully account for the growth of battery storage and other emerging technologies.

-- Changing grid demands: Increasing electrification and new electric loads are placing additional demands on the distribution system, underscoring the need for clear, consistent interconnection standards.

-- Wholesale and distribution coordination: Ongoing efforts by PJM Interconnection to revise interconnection policies may place greater responsibility on states for projects connecting at the distribution level, highlighting the importance of up-to-date state regulations.

-- Clarity for consumers and businesses: Clear interconnection rules can help individuals, families, and businesses better plan for new electric uses, on-site generation, and system upgrades.

“As our energy system evolves, the Commission has a responsibility to make sure our rules keep pace in ways that protect consumers,” said PUC Chairman Steve DeFrank. “By continuing to advance this work, we are focused on maintaining reliability and affordability while providing the regulatory certainty that households and businesses need as they plan for future energy use.”

The Commission emphasized that this effort is separate from and does not replace the PUC’s active proceeding addressing FERC Order 2222. Instead, it is intended to ensure that Pennsylvania’s broader interconnection framework reflects current technologies, customer needs, and grid conditions.

Next Steps

The Law Bureau and Bureau of Technical Utility Services will begin drafting a proposed Notice of Proposed Rulemaking consistent with today’s action. 

Once issued, the proposal will be published in the Pennsylvania Bulletin, opening a public comment period and providing stakeholders an opportunity to provide input.

Additional information will be posted on the PUC’s website as the rulemaking moves forward at PUC Docket No.: M-2025-3059032.

Click Here for the PUC announcement.

Resource Links - Interconnection:

-- More Than 100 PA Businesses, Environmental Groups, Civic Leaders Write PUC Urging Action On Reforms To Speed Local Connections To Grid To Increase Energy Supplies, Resiliency, Affordability  [PaEN] 

-- PUC Commissioners Agree On Need To ‘Get It Right’ On Reforming Grid Connection Process For Solar, Renewable, All Energy Sources To Protect Consumers, Grid Reliability   [PaEN] 

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[Posted: December 18, 2025]  PA Environment Digest