PUC Launches Review Of Electric Grid Impacts From Data Center Growth, Sets April 24 Hearing

On March 27, the Public Utility Commission voted 5-0 to approve a motion by Chairman Stephen M. DeFrank to convene a public hearing exploring the growing impact of large-scale electric customers — including data centers and other high-energy users — on the state’s electric grid.

“This is a critical moment for Pennsylvania’s energy future. As we welcome new industries and evolving technologies, we need to strike the right balance — protecting consumers, supporting utilities, and fostering smart growth,” noted Chairman DeFrank. “This hearing is about making sure we have fair, transparent, and forward-looking rules that benefit everyone.”

The hearing, scheduled for the afternoon of April 24, 2025, in Hearing Room 1 of the Commonwealth Keystone Building in Harrisburg, will bring together electric utilities, major energy users, and consumer advocates to examine the challenges and opportunities presented by these high-demand customers.

The Commission is seeking testimony and input on a range of topics that will help inform future policy, including the development of a model tariff to guide how large load customers connect to the grid.

Topics include:

-- How to define large load customers, including appropriate megawatt (MW) thresholds

-- Requirements for deposits or financial security from new large load users

-- Cost-sharing and contributions toward necessary infrastructure upgrades

-- Minimum contract terms and exit or early termination fees

-- Timelines and costs associated with interconnection studies and agreements

-- Phased-in usage (load ramping schedules)

-- Tariff differences between firm service and interruptible customers

-- Backup generation and related standby rates

-- Transparent and equitable cost structures

-- Whether customers can self-fund and construct system upgrades, and how to account for that in tariffs

-- Opportunities for expedited interconnection

-- Best practices from other states or regions

-- Any other policies or procedures that support efficient and fair interconnections

“Across Pennsylvania and the broader region, we’re seeing increasing interest from large electricity users — especially hyperscale data centers that support artificial intelligence and other operations,” said Chairman DeFrank. “These customers have the potential to bring tremendous benefits to our state, from job creation and economic growth to energy innovation and grid stability. But we must also ensure that existing customers are protected, that the rules are clear, and that utilities can plan infrastructure upgrades responsibly.”

The hearing will feature three expert panels representing electric distribution companies, large load customers, and public advocates. 

The Commission will also accept written comments as part of the public record, followed by the development of a proposed model tariff by Commission staff.

More details about the April 24 hearing — including the agenda, panelists, and information on how to view or participate — will be announced in the coming weeks.

Documents related to this initiative will be found at Docket No.: M-2025-3054180.

Click Here for the PUC announcement.

NewsClip:

-- PA Capital-Star: PA Public Utility Commission Sets Hearing On A.I. Data Centers’ Impacts On Electricity Grid

Resource Links:

-- PUC House Budget Hearing: We Aren’t Going To Build Our Way Out Of Electric Generation Shortfalls On PJM Grid; We Need To Diversify Our Generation Sources   [PaEN]

-- PUC Invites Stakeholder Comments On The Issue Of The Adequacy Of Electricity Supplies In Pennsylvania  [Background On Issue]  [PaEN]

-- 30 Stakeholder Comments Received By PUC On Adequacy Of Electricity Supplies In Pennsylvania; Increasing Natural Gas Power Plant Reliability To 90-95% Would Mean No Imminent Capacity Problem  [PaEN]

-- Washington & Jefferson College To Host April 9 Webinar On Energy, Economy And A.I. - Data Centers And Pennsylvania's Future  [PaEN] 

-- Washington & Jefferson: Demand For Data Centers Increasing In Pennsylvania

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[Posted: March 27, 2025]  PA Environment Digest