The Pennsylvania Public Utility Commission yesterday [April 30] voted to approve a long-awaited Model Large Load Tariff outlining how large electricity loads such as data centers connect to and pay for the electric grid.
The move marks a significant step toward protecting utility customers from rising infrastructure costs tied to rapid data center growth.
While the Commission’s final order and tariff language are still pending, statements from Commissioners during the April 30 vote suggest the PUC may adopt some of the strongest customer protections in the country.
The stakes are high given the scale and speed of data center-driven growth.
Pennsylvania utilities pursued roughly $500 million in transmission investments tied to large-load growth in 2024 alone.
PJM Interconnection projects electric demand could increase roughly 39% by 2035, largely driven by data centers that are increasingly drawn to Pennsylvania.
Most notably, Commissioners indicated large-load customers will likely be required to pay in advance for new utility infrastructure built to serve them.
Environmental Defense Fund and other advocates filed formal comments urging the Commission to adopt a clear principle that large-load customers, not households and small businesses, should bear the costs of infrastructure needed to serve their facilities.
“The Commission took an important step toward protecting Pennsylvania customers from bearing the costs of rapid data center growth,” said Michael Zimmerman, Interim Director & Senior Attorney, Clean Affordable Power, Environmental Defense Fund. “Requiring large-load customers to pay up front for new infrastructure helps reduce the risk of cost shifting to families and small businesses while improving transparency and accountability.”
According to Commissioners’ statements, large load customers would pay the costs of all distribution and transmission facilities built to serve them, except for projects already planned before a customer requested service.
That approach could go even further than some stakeholders proposed by requiring upfront payments rather than allowing costs to be recovered over time.
At the same time, important questions remain unresolved.
The Commission has not yet clarified how it will define projects that were “already planned” before a customer requested service or what constitutes a customer “requesting service.”
Without clear definitions, the final model tariff could inadvertently create loopholes that allow large-load customers to escape paying for infrastructure built to serve them. Commissioners also indicated the model tariff will--
-- Establish minimum standards for contracts between utilities and large-load customers
-- Allow large-load customers to construct certain infrastructure upgrades themselves
-- Require large-load customers to contribute to low-income customer assistance programs
The Model Large Load Tariff will serve as nonbinding guidance. Utilities will still need to develop utility-specific tariffs through future proceedings before the PUC.
“We still need to review the final order and tariff language, but early indications are encouraging,” said Zimmerman. “The Commission deserves credit for prioritizing customer protections while navigating the complex and fast-growing challenge of data center-driven electricity demand.”
PA Oil & Gas Industry Public Notice Dashboards:
-- Pennsylvania Oil & Gas Weekly Compliance Dashboard- April 25 to May 1 [PaEN]
-- DEP Signs Consent Orders With CNX Gas, Leatherwood LLC Requiring The Plugging Of 5 Conventional Coal Bed Methane Wells Prior To Longwall Coal Mining In Center Twp., Greene County [PaEN]
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - May 2 [PaEN]
-- DEP Invites Comments On Chapter 105 Permit For 4.5 Mile EQT ARO Natural Gas Pipeline On State Forest Land In Lycoming County [PaEN]
-- DEP Posted 62 Pages Of Permit-Related Notices In May 2 PA Bulletin [PaEN]
-- DEP Accepting Comments On 2nd Stormwater Permit For SNA North LLC/QTS A.I. Data Center Project In Salem Twp., Luzerne County [PaEN]
-- Public Utility Commission Sets July 10 Telephonic Hearing On PPL Condemnation Of 30 Properties For The Sugarloaf 500/230KV Transmission Line In Luzerne County To Serve Data Centers [PaEN]
-- DEP To Hold June 16 Hearing On Water Quality Permit For Rustic Ridge II Coal Mining Permit In Westmoreland County [PaEN]
-- DEP To Hold May 21 Informal Conference To Take Comments On The Proposed Addition Of 7,154 Acres To The Rosebud Mining Company Penfield Coal Mine In Clearfield County [PaEN]
Related Articles This Week:
-- PUC Adopts Voluntary Large Load, Data Center Tariff Framework To Help Protect Ratepayers [PaEN]
-- Gov. Shapiro Appoints Mark Szybist New Special Counsel For Energy Affordability [PaEN]
-- Public Utility Commission Sets July 10 Telephonic Hearing On PPL Condemnation Of 30 Properties For The Sugarloaf 500/230KV Transmission Line In Luzerne County To Serve Data Centers [PaEN]
-- Federal Energy Regulatory Commission Approves Extension Of PJM Capacity Auction Price Cap, Floor For Next 2 Auctions [PaEN]
-- Senate Committee Hears Electric Grid Issues Getting Worse; PJM Has Attracted 220 GW Of New Generation Proposals; PJM ‘Backstop’ Procurement Critical To Making Data Centers Pay For New Generation [PaEN]
-- PA House Energy Committee Sets May 4 Meeting To Act On More Bills To Address Electric Grid Reliability, Affordability Issues: Authorize Virtual Power Plants, More [PaEN]
-- PA House Passes Bill To Require A.I. Data Centers To Report Water Use, Discharges To DEP [PaEN]
-- Concerned Citizens Of Montour County: Data Center Developer Wants To Make It Harder For Citizens To Appeal Zoning, Permits; DCED Secretary Explains More On How They Want New GRID Principles To Work [PaEN]
-- Montour County: What A.I. Data Center Developers Don’t Like In Zoning Ordinances: Decommissioning Safeguards For When Their Tech Becomes Obsolete; No Noise Limits On Diesel Generators; No Property Value Impact Studies [PaEN]
-- Tri-County Regional Planning Commission Publishes Model A.I. Data Center Ordinance; Links To Other Model Ordinances [PaEN]
-- DEP Citizens Advisory Council Meets May 12 For Presentations On A Data Center Guide From Chester, Montgomery Counties; PFAS ‘Forever Chemical’ Contamination In Biosolids [PaEN]
-- DEP Receives Federal Funding To Study Human Health Impacts Of Leaking, Abandoned Conventional Oil & Gas Wells; Conventional Regulation Updates Delayed; Reports On Setback Petition By End Of 2026 [PaEN]
-- Environmental Health Project Calls On Gov. Shapiro To Address Health Hazards Of Fossil Fuels [PaEN]
-- Gov. Shapiro Announces $267 Million Investment In 31 PA Industry Projects To Reduce Air Pollution, Cut Energy Costs, Create Jobs, And Combat Greenhouse Gas Emissions In 23 Counties; Next Grant Round Opens May 15 [PaEN]
-- Pittsburgh Gateways Flips The Switch On New Rooftop Solar Energy System On Energy Innovation Center [PaEN]
-- PA Technical Assistance Program July 16 Webinar On Funding, Incentives For Energy Efficiency Improvements For Manufacturers [PaEN]
-- DCNR: Grid-Scale Solar Energy Installations Are Not Permitted On Any DCNR Lands Or On Lands That Have Received DCNR Grant Funds [PaEN]
-- Environmental Defense Fund: Rollback Of Federal Methane Emission Limits On Oil & Gas Facilities Have Wasted $4.8 Billion Worth Of Natural Gas That Could Have Served 22 Million Homes- And Counting [PaEN]
-- US Dept. Of Energy Cyber Threat Center Issues Another Warning To Oil & Gas Industry About Automatic Tank Gauge Manipulation By Malicious Cyber Threat Actors [PaEN]
[Posted: May 2, 2026] PA Environment Digest
