PUC Releases Agenda For April 24 Hearing On Its Review Of Electric Grid Impacts From Data Center Growth

On April 14, the Public Utility Commission released the agenda and additional information regarding its April 24 public hearing to explore the impact of data centers and other large load customers on the state’s electric grid.

This en banc hearing, approved by a unanimous vote of the Commission on March 27, 2025, will examine how to ensure a fair, transparent, and forward-looking approach to connecting high-energy users to the grid while protecting existing utility customers.

Hearing Witnesses

The agenda for the proceeding includes three expert panels, representing the following perspectives related to large-load energy demand and growth--

Large Load Customers

-- Michael Fradette, Principal, Energy Services, Amazon Web Services

-- Lucas Fykes, Director of Energy Policy, Data Center Coalition

-- Brendeon Baatz, Energy Market Development, Google

-- Shawn Smith, Vice President, Utility & Regulatory, Vantage Data Centers

Electric Distribution Companies

-- C. James Davis, Director, Rates, Energy Procurement, and Federal/RTO Affairs, Duquesne Light Co.

-- Kelly Gower, Vice President, state finance & Regulatory, FirstEnergy

-- Richard Webster, Vice President, Regulatory Policy & Strategy, PECO

-- Joe Lookup, Vice President, T&D Planning & Asset Management, PPL

Consumer And Public Advocates

-- Darryl Lawrence, Consumer Advocate, Office of Consumer Advocate

-- Allison Kaster, Chief Prosecutor, Bureau of Investigation & Enforcement, PUC

Topics To Be Discussed

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

Additional Comments Invited

As outlined in the initial motion by PUC Chairman Stephen M. DeFrank, the Commission will accept comments from interested parties for 30 days following the hearing. 

A 15-day reply comment period will follow the initial comment deadline. 

Additional instructions for submitting comments will be posted to the hearing webpage following the hearing.

Hearing Background

The April 24 hearing is part of the PUC’s broader effort to assess the growing presence of hyperscale data centers and other energy-intensive operations across Pennsylvania. 

These large customers can bring benefits such as economic growth and innovation, but they also raise important questions about grid reliability, cost-sharing for infrastructure upgrades, interconnection procedures, and equitable treatment of existing customers.

For more background, read the initial press release announcing the hearing and Chairman DeFrank’s motion convening the hearing.

Joining The Hearing

The hearing will be held on Thursday, April 24, 2025, beginning at 1:00 PM, in Hearing Room 1 of the Commonwealth Keystone Building, located at 400 North Street, Harrisburg, PA. The hearing is open to the public, though seating is limited.

The hearing will be broadcast live via the PUC Live Streaming Channel and a recording of the hearing will also be posted to the hearing information web page following the session.

More Information

Visit the PUC’s Large Load Customers Hearing webpage for the final agenda, the testimony submitted by the panelists and other information on the hearing.

Documents will be posted at PUC Docket No. M-2025-3054271.

Click Here for the PUC announcement.

(Photo: Rendering of proposed Homer City data center and power plant complex.)

Related Articles This Week:

-- PUC Releases Agenda For April 24 Hearing On Its Review Of Electric Grid Impacts From Data Center Growth  [PaEN]

-- New Report: Fixing PJM’s Broken Electric Generation Approval Process Can Lower Energy Costs, Create Jobs Across The Mid-Atlantic  [PaEN]

-- North American Electric Reliability Corp. Files Proposed Cold Weather Standard To Improve Reliability For Natural Gas-fired, Other Electric Generators  [PaEN]

-- PUC Commissioners Urge Congressional Action To Preserve $19 Million In Remaining LIHEAP Funds For PA This Year  [PaEN] 

NewsClips:

-- Utility Dive: NERC Proposes Generator Cold Weather Reliability Standard

-- Utility Dive: Ratepayer Advocates: FERC Should Order PJM To Rerun Last Electricity Capacity Auction; Could Lead To $5 Billion In Consumer Savings

-- Reuters: Canadian Power Producer Capital Power Corp Buys 1,124 MW Hummel Natural Gas Power Plant In Snyder County Amid Growing Data Center Power Demand

-- Reuters: FERC Denies Rehearing On Colocated Amazon Data Center Energy Pact In Luzrne County

-- Energy Association Of PA [Utilities] Calls For Protection Of LIHEAP Low-Income Home Energy Assistance Program

-- Observer-Reporter Guest Essay: Shapiro’s Energy Policies Will Cause Us To Pay More - By Sen. Camera Bartolotta (R-Washington) [PJM Policies-Data Center Growth Taking Power Away From Public-Natural Gas Prices Are Real Problem - Get The Real Story Here ]

-- Bloomberg: US Propane Market Collapses Due To Trade War With China

-- Reuters: US Natural Gas Prices Drop 6% To 9-Week Low On Record Output, Lower Demand 

-- E&ENews/Politico: President’s Push For More LNG Gas Exports Risks Domestic Price Surge  

-- Financial Times: Growth In Oil Demand Expected To Slow Sharply As A Result Of Presidents Tariffs 

-- The Guardian: President’s Tariffs Will Mean World Uses Less Oil This Year, IEA Says

Resource Links - PA Data Centers:

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

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

-- 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]

-- Gov. Shapiro Launches Legislative Push for 'Lightning Plan’ To Build More Energy Projects, Speed Up Permitting, Lower Costs, Create Jobs For Pennsylvanians [PaEN]

-- Bloomberg: President’s Tariffs Herald Higher Costs For A.I. Boom; New Measure Hit Power Industry Already Struggling To Procure Vital Equipment 

-- Utility Dive: US DOE Offers 2 National Energy Technology Laboratory Sites In Pittsburgh For Colocating Data Centers, Related Power Plants  [PaEN]

-- Liberty Energy, Range Resources Announce Support For Developing A Natural Gas Data Center Power Plant In Robinson Twp., Washington County  [PaEN]

-- Wall Street Journal: Homer City Coal Power Plant Was Just Imploded To Make Way For An A.I. Data Center, The Country’s Largest Natural Gas Power Plant [PDF of Article] 

-- TECfusions Unveils Massive 1,400-Acre Data Center Project With 3 Gigawatts Of Natural Gas-Fired Power Generation In Westmoreland County  [PaEN]

-- DEP Issues Air Quality Permit For Nova Energy LLC Cryptocurrency Data Center In Venango County  [PaEN]

-- DEP Invites Comments On Air Permit For Kratos Cryptocurrency Mining Facility Powered By Natural Gas In Clinton County [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]

-- Guest Essay: Significant Electricity Load Growth Can Be Accommodated Without A Stampede To New Natural Gas Generation Just By Increasing Efficiency At Existing Power Plants  [PaEN]

-- PJM Interconnection Reliability Initiative Attracts 94 Applications For 26.6 GW Of New Electric Generation Capacity; Reviews To Be Completed By 2026; List Of Projects Not Available Now  [PaEN]

-- PJM Interconnection Supports Presidential Exemptions From Clean Air Act Standards Requested By 13,900 MW Of Electric Generation In PJM Region, Including Keystone And Conemaugh Power Plants In PA  [PaEN]

-- PJM, Google & Tapestry Join Forces To Apply A.I. To Enhance Regional Planning, Generation Interconnection  [PaEN]

-- President Signs Executive Orders Directing US Attorney General To Take Action Against States Impeding Domestic Energy Production; Rescinds Policies Transition Away From Coal; Lifts Toxics Standards For Coal Power Plants  [PaEN]

-- President Signs Executive Orders Directing US Attorney General To Take Action Against States Impeding Domestic Energy Production; Rescinds Policies Transition Away From Coal; Lifts Toxics Standards For Coal Power Plants  [PaEN]

Resource Links - PJM Issues:

-- Gov. Shapiro Reaches Agreement With PJM To Prevent Unnecessary Price Hikes And Save Consumers Over $21 Billion On Utility Bills [PaEN]

-- PA Senate Republican Leader: ‘Every Consumer Of Electricity In This Commonwealth Is Going To Pay More;’ ‘What You’re Going To Face Is Going To Be Really Unpleasant’  [PaEN]

-- Gov. Shapiro Threatens To Pull Pennsylvania Out Of PJM If It Does Not Protect Consumers Against Soaring Power Prices [PaEN]

-- Gov. Shapiro, Joins 4 Other Governors To Call On PJM To Reform Its Electric Generating Capacity Auction Rules To Prevent Billions Of Dollars In 'Unnecessary’ Costs To Their Residents, Businesses [PaEN]

-- PJM Electricity Auction Price 9 Times Higher Than Previous Auction-- $269.92/MW-Day For 2025/26 Delivery Compared To $28.92/MW-Day In 2024-25; Extreme Weather Risk Big Factor  [PaEN]

-- PennFuture: Dramatic PJM Electricity Price Increases Due To Forced Outages Of Gas Power Plants; Huge Backlog Of New Generation Projects; Demand Growth Driven By Data Centers, Cryptocurrency Mining  [PaEN]

-- Kleinman Center For Energy Policy: The High Price Of Failing To Transition To Clean Energy In PJM Footprint; Next PJM Auction Is In December  [PaEN]

-- PJM, Electric Grid Operators Recommend Additional Steps To Overcome Vulnerabilities In Natural Gas Infrastructure To Ensure More Reliable Grid Operation  [PaEN]

-- FERC Approves PJM $1.25 Billion Winter Storm Elliot Settlement With Non-Performing Natural Gas, Other Electricity Generators [PaEN]

-- PJM Reports Natural Gas Power Plants Were Over Half The Forced Outages During Winter Storm Gerri In January; Special Procedures Used For Gas Generators Raised Questions About Market Impacts [PaEN]

[Posted: April 14, 2025]  PA Environment Digest