Chairman Stephen M. DeFrank, Vice Chair Kimberly M. Barrow and Commissioner Kathryn L. Zerfuss voted in favor. Commissioners John F. Coleman Jr. and Ralph V. Yanora voted against the Tentative Order
This action marks another step forward in the Commission’s continuing process to address the growing impact of data centers and other energy-intensive users across Pennsylvania’s electric grid.
“Pennsylvania has a real opportunity here – if we get it right,” noted PUC Chairman Steve DeFrank. “Today’s tentative order is about welcoming investment and jobs while making sure existing customers aren’t stuck with the bill. We’re proposing clear, transparent rules that help interconnect large loads quickly and responsibly – protecting reliability, preventing cost-shifts, and avoiding stranded costs. I urge all parties to bring us practical, balanced feedback over the next 30 days so we can finalize a durable approach that works for everyone.”
Highlights of the Tentative Order
-- Defines large-load customers and aligns Pennsylvania’s approach with emerging practices across the PJM region.
-- Strengthens protections for existing customers through cost-causation measures — including contributions-in-aid-of-construction, tiered collateral, and minimum contract terms.
-- Encourages large-load customers to contribute toward programs that support low-income customers.
-- Encourages faster, more transparent interconnections through clustered study timelines, optional independent studies, and limited customer-built upgrades meeting utility standards.
-- Incentivizes flexibility by providing rate options for customers willing to accept interruptible or flexible service during peak system demand.
Click Here for a copy of the Tentative Order.
Comments By The Commissioners
The 3 to 2 vote by the Commission was unusual on a major and Chairman Stephen DeFrank called it “absolutely unfortunate.”
In a written statement and comments at the Commission meeting, Commissioner John Coleman said although the Tentative Order addressed many of the issues raised to the Commission on large loads, “in some areas, it appears that the proposed language is overly prescriptive and may be counterproductive to the provision of adequate, reasonable, and efficient service to prospective customers.”
As an example, he said the Order “carves out a ‘requirement’ that large customers make significant financial contributions to “hardship funds” on an annual basis as a condition for receiving and maintaining public utility service.”
“While the Public Utility Code includes provisions requiring the funding of customer assistance programs,” Commissioner Coleman said. “I am not satisfied that the Commission has the legal authority to require contributions to hardship funds as a condition to obtain or maintain public utility service.”
He also expressed concerns about provisions requiring that electric distribution companies “shall file with the Commission, on a confidential basis, a compliance report…” detailing various information regarding the following items:
-- Revenues collected from large load customers;
-- Distribution system impacts;
-- Curtailment enforcement; and
-- Equity and outreach to certain classes of customers.
“Such a requirement attempts to establish a binding norm outside of the rulemaking process and thus denies interested stakeholders appropriate notice and an opportunity to be heard.”
Commissioner Coleman also noted a pending rulemaking by the Federal Energy Regulatory Commission on large load customers expected to be finalized in April may have an impact on the Tentative Order.
“There is significant concern on the part of state [utility] commissions that such a rule may preempt state regulation of the issues reviewed at this docket.
“I am aware NARUC [National Association of Regulatory Utility Commissioners] will be considering a draft resolution on this rulemaking at its next annual meeting.
“It would be unfortunate if overreaching by states contributed to the loss of jurisdiction over these very important issues.
“I welcome comments on whether the Commission should stay final action at this docket until FERC concludes its proceeding.”
“In conclusion, while I do not support all the provisions of the Tentative Order or proposed tariff, I look forward to reviewing the comments filed in response to today’s Tentative Order and will continue to monitor pending legislation or any other matter coming before this Commission that pertains to the underlying issues,” said Commissioner Coleman.
In response, Chairman DeFrank said, “I think that there are a lot of things we can come to an agreement on, but as Vice Chair Barrow pointed out, I got the four-page statement 45 minutes ago [from Commissioner John Coleman], so it's hard to come to agreement when you don't know until you're walking into a meeting.”
“When we talk about the hardship funds, I do want to point out that the [price] increases in the [PJM] capacity market…we've had a 900% increase in one auction,” said Chairman DeFrank. “The whole concept is lower-income individuals are going to have a harder time making ends meet, even more so than today, once we have data centers come in and are absorbing that load.”
“We've seen huge increases in the capacity market, and that's because we don't have our arms around load forecasts, and that's one of the things,” said Chairman DeFrank. “There's a bill over [in the General Assembly] that does that, that puts that power in our hands. We have an RFP out that looks at a load forecaster. The Commission has been moving in this direction on a number of fronts.”
“This is not the final order, but we think we have a good start to this document here, and I think it could get better. There's no question about it,” said Chairman DeFrank. “Again, I think this is a big day for the Commission. I commend staff, commend Pat Shaughnessy from my staff who worked on this, and that's all I have.”
Statements By Commissioners
-- Chairman Stephen M. DeFrank
-- Vice Chair Kimberly Barrow
-- Commissioner Kathryn L. Zerfuss
-- Commissioner John F. Coleman, Jr.
Public Comments
The Tentative Order will be published in the Pennsylvania Bulletin, triggering a 30-day public comment period.
PUC Background
In March 2025, the Commission launched a proceeding to examine the grid impacts of data-center growth and other high-demand electric users, followed by a hearing in April 2025 that brought together utilities, consumer advocates, industry stakeholders, and members of the public.
The Tentative Order adopted today reflects that input and outlines a model approach that utilities can use to help ensure timely, transparent, and fair interconnection of large loads, while protecting existing ratepayers and preserving long-term system reliability.
Documents related to this Order can be found at PUC Docket: M-2025-3054271
Click Here for a copy of the PUC announcement.
Other Needed Actions
Witnesses at an 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]
-- PJM Electric Auction Impacts: 1 In 5 PA Households Report Problems Now Paying Energy Bills; Electric Utility Shutoffs Up 38.1% So Far This Year [PaEN]
-- PJM Electricity Auction: PJM Lost 2.8 Gigawatts Of Power Due To Reduced Reliability Rating Of Natural Gas Power Plants; Could Gain 12.2 Gigawatts By Increasing Reliability From Less Than 75% Now To An Achievable 90% [PaEN]
Related Articles This Week:
-- Nov. 12 Joint Meeting Of DEP’s Citizens Advisory Council, Environmental Justice Advisory Board To Hear EJ Concerns With A.I. Data Centers, Update On DEP’s EJ Initiatives, Cumulative Impacts Of Facilities [PaEN]
-- PJM Winter Power Outlook: Adequate Power Supplies Available To Serve Growing Demand Under Expected Conditions; 1 GigaWatt Of Mostly Solar Power Capacity Added Since Last Winter [PaEN]
-- Guest Essay: Don’t Trade Away Pennsylvania's Climate Regulations As Part Of State Budget Deal [Fossil Fuel Power Plants Power Wave Of Data Center Proposals] - By Rep. Greg Vitali, Majority Chair, House Environmental & Natural Resource Protection Committee [PaEN]
-- Moms Clean Air Force PA Urge Gov. Shapiro To Protect The RGGI Program Regulating Carbon Pollution From Power Plants To Cut Climate Pollution [PaEN]
-- PEC Podcast: Advanced Electric Transmission Technology - More Capacity, More Power Out Of Our Existing Grid At A Fraction Of The Cost [PaEN]
-- Water At Risk: A.I. Data Centers Bait And Switch? - By Carol Hillestad for Brodhead Watershed Association, Monroe County [PaEN]
-- PUC: Utilities Will Not Terminate LIHEAP-Eligible Heating Customers During Federal Shutdown; Customers Need To Call Utilities Now To Stay Connected This Winter [PaEN]
NewsClips:
-- Observer-Reporter: Greene County Planning Commission Gives Preliminary Approval To 1,400 Acre A.I. Data Center Project, Related 900 WM Power Plant, 18 Million GPD Water Treatment Plant In Monongahela Twp [PDF of Article].
-- Reuters: PPL Corp Signs Agreements With A.I. Data Centers To Connect 20.5 Gigawatts Of Power In PA, A 40% Jump Over 3 Months [Enough Electricity To Power Nearly All The Homes In PA 3 Times Over]
-- WGAL: A.I. Data Center Growth: PA Lawmakers, Researchers Weigh Benefits, Risks
-- TribLive: Surge In A.I. Data Centers Sparks Concern Over Water Demands
-- Spotlight PA: Millions At Risk Of Power Shut Off Because Of Federal LIHEAP Funding Delays During Federal Shutdown [PA Included]
-- TribLive: Surge In A.I. Data Centers Sparks Concern Over Water Demands
-- Wall Street Journal: What Happened When Small-Town America Became A.I. Data Center, USA [PDF of Article]
-- Post-Gazette - Anya Litvak: With Federal LIHEAP Funding Not Available, PA Heating Utilities Pledge Not To Disconnect Low-Income Customers This Month
-- LancasterOnline/WITF: PA Heating Utilities Step In As Government Shutdown Halts LIHEAP Heating Help Program
[Posted: November 6, 2025] PA Environment Digest
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