PA Environment Digest Blog: PA PUC To Take Up Model Tariff For Connecting Large Load/A.I. Data Centers To The Electric Grid At Nov. 6 Meeting; Other Changes Needed

At the October 23 meeting of the Public Utility Commission, Chairman Stephen M. DeFrank announced the Commission anticipates taking action on a model tariff for connecting large load - A.I. Data Centers-- to the local electric grid at its November 6 meeting. [See video - 3:20]

The meeting is scheduled to begin at 10:00 a.m. and will be available online. [ PUC Docket: M-2025-3054271 ]

At a House Energy Committee hearing on October 22, Chairman DeFrank said the Commission started working on the model tariff in April at a special en banc hearing where they heard testimony from electric distribution companies, data centers and advocates.

“We focused the conversation on the impact of data center interconnection onto the electric grid as well as what rules and procedures should be put in place to effectively interconnect these facilities while protecting existing customers from undue risks and costs,” said Chairman DeFrank. “The Commission also received filed comments from over forty interested parties.”

“The provisions the Commission endeavors to establish via our model tariff proceeding include, but are not limited to areas such as--

-- Appropriate megawatt size for tariff designations;

-- Financial security requirements;

-- Minimum contract terms;

-- Early termination fees; and

-- Maximum interconnection study times, load ramping, and best practices utilized in other jurisdictions.”

“Next steps after that would be to review the comments in response to our proposal and issue a final model tariff. We would plan to have that done within three to five months of issuing our tentative proposal,” said Chairman DeFrank.

“Any final model tariff adopted by the Commission would not be binding on EDCs [electric distribution companies], but rather, would establish a set of best practices that the Commission would encourage for utilization as prudent policy provisions,” said Chairman Defrank.

[Note: A change in state law would be needed to strengthen the model tariff into regulations and to authorize the PUC to take other actions to protect ratepayers and grid reliability from large electricity cost and demand increases caused by A.I. data centers.]

Click Here for more comments from Chairman DeFrank on this issue from a September 2 Senate hearing.

Click Here for copies of written testimony at the House hearing.

Click Here for Part I of the hearing video - industry, business, unions, PUC, utilities

Click Here for Part II of the hearing video - Independent PJM Market Monitor, Consumer Advocate, PA Utility Law Project

Other Needed Actions

Other witnesses at the October 22 House Energy Committee hearing on regulating A.I. data centers to protect ratepayers from higher costs and grid reliability from the surging energy demands of data centers, called for legislative action to--

-- Require data centers to bring their own generation - PJM Market Monitor, PA Consumer Advocate, PA Utility Law Project

-- Authorize the PUC to set conditions for allowing centers to be served by the grid - PA Consumer Advocate, PA Utility Law Project

-- Require center contributions to Universal Service Assistance Programs and LIHEPA to reduce the impact of electricity prices increases on lower income ratepayers - PA Utility Law Project

-- Need to prioritize existing loads and ratepayers on the grid - PJM Market Monitor, PA Consumer Advocate, PA Utility Law Project

-- Require centers to take electrical service on an interruptible basis during supply shortage periods - PA Consumer Advocate, PA Utility Law Project

-- Authorize the PUC to set power curtailment priorities - PA Consumer Advocate, PA Utility Law Project

-- Encourage backup generation at centers other than diesel to reduce environmental impacts - PA Consumer Advocate

Data Center Stampede Trampling PA Ratepayers:

-- Data Center Stampede Trampling PA Ratepayers Part I: PA Utility Law Project - Utility Terminations Up 30% Already; Prioritize Existing Loads; Centers Need To Help Pay For Utility Assistance [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part II: PA Consumer Advocate - PUC Should Set Conditions For Centers To Be Served By The Grid; Set Power Curtailment Priorities [PaEN]

-- Data Center Stampede Trampling PA Ratepayers Part III: PJM Market Monitor - Data Centers Have Cost Existing Ratepayers $16.6 Billion Already; Centers Should Bring Their Own Power Generation To Prevent More Large Price Spikes [PaEN]

-- PA PUC To Take Up Model Tariff For Connecting Large Load/A.I. Data Centers To The Electric Grid At Nov. 6 Meeting; Other Changes Needed [PaEN]

-- PUC Votes To Suspend, Investigate PPL Electric's Proposed 7%, $356 Million Rate Increase [PaEN]

NewsClips On House Energy Committee Hearing:

-- WITF: PA House Committee Considers Shielding PA Ratepayer’s Wallets From A.I. Data Center Energy Costs