PA Environment Digest Blog: House Energy Committee To Consider Bill Giving PUC More Authority To Regulate A.I. Data Centers Jan. 26; Hearings On Related Bills Jan. 26 and Feb. 2

The House Energy Committee is scheduled to consider House Bill 1834 (Matzie-D-Beaver) authorizing the Public Utility Commission to adopt regulations for data centers to protect ratepayers and the electric grid.

As introduced, House Bill 1834 would give the PUC authority to set: Financial security requirements; Calculations of contributions in aid of construction; Minimum contract terms; Load ramping schedules; Exit fees; Measures to mitigate circumvention of customer size thresholds; Revenue and cost tracking requirements; End-of-contract processes; Curtailment; Cost recovery parameters; Low-income assistance; andRenewable energy requirements.

The Committee held a hearing on the bill in October were where consumer advocates and the PJM Market Monitor made similar recommendations for strengthening the bill--

-- 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

Amendments Expected

A comprehensive amendment to House Bill 1834 is expected to be considered by the Committee. Click Here for the draft language.

The amendment contains language setting conditions for large electrical loads to join the grid, including--

-- Certification a large load is bringing its own energy resources;

-- Requiring interruptible electrical service during energy shortages;

-- Requiring large loads to join energy curtailment programs;

-- Require costs of providing service to large loads is not subsidized by any other ratepayers;

-- Require contributions to the Low Income Energy Assistance Program, except where large loads bring their own energy resources;

-- Establishes a Community Energy Facilities Program to fund projects related to local energy generation and the impacts of large load projects funded by a charge on the electricity used by the large load; and

-- Other changes.

This amendment may change and other amendments may be offered.

Joining The Jan. 26 Voting Meeting

The meeting will be held in Room 60 East Wing starting at 10:00 a.m. Click Here to watch online.

Rep. Elizabeth Fiedler (D-Philadelphia) serves as Majority Chair of the House Energy Committee and can be contacted by calling 215-271-9190 or click here to contact. Rep. Martin Causer (R-Cameron) serves as Minority Chair and can be contacted by calling 717-787-5075 or by sending email to: mcauser@pahousegop.com.

January 26 Hearing (New)

The House Energy Committee has also scheduled a hearing on January 26 immediately following the voting meeting on House Bill 1834 to accept comments on two bills--

-- Model Data Center Ordinance: Legislation sponsored by Rep. Kyle Donahue (D-Lackawanna) directing the Center for Local Government Services to draft a model ordinance and offer technical support to municipalities with regard to the siting of data centers [draft language]; and

-- Disclosure of Energy, Water Use: Legislation sponsored by Rep. Kyle Mullins (D-Lackawanna) requiring data centers in Pennsylvania to send information about their energy and water use to DEP and require DEP to aggregate the information and create an annual report on data center impacts [draft language].

The hearing will be held in the same location-- Room 60 East Wing starting at 10:00 a.m. Click Here to watch online.

January 27 Hearing

The House Energy Committee previously scheduled a hearing on January 27 on House Bill 2076 (Venkat-D- Allegheny) establishing a legal framework for the regulation of geothermal energy resources that are greater than 5,000 feet deep.

The Committee is expected to hear from Seith Pelepko, DEP Deputy Secretary for Oil and Gas Management, John Walliser, PA Environmental Council.

The hearing will be held in Room B-31 Main Capitol from 10:00 to 11:00 a.m. Click Here to watch online.

February 2 Hearing (New)

The House Energy Committee has scheduled a new hearing for February 2 on legislation sponsored by Rep. Kyle Donahue (D-Lackawanna) to mandate the creation of Virtual Powerplant programs in Pennsylvania [draft language].

The meeting will be held in Room 60 East Wing from 10:00 to 11:30 a.m. Click Here to watch online.

Resource Links:

-- 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 Electricity Auction Prices Again At Cap Imposed By Gov. Shapiro’s Lawsuit Settlement, Without It Prices Would Be 59% Higher Driven By A.I. Data Center Demand; Grid Reliability Now Questioned [PaEN]

-- PUC Chairman Highlights 'Extraordinary Challenges' Pennsylvania Families Are Facing This Winter With Energy Bills And His Appreciation For Groups Providing Assistance [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]

-- PA Energy, Environmental, Citizen Advocates Call On PUC To Protect Ratepayers, Communities From Costs, Impacts Of A.I. Data Centers [PaEN]

-- Spotlight PA: Map Shows Growing Number Of A.I. Data Centers Planned Across Pennsylvania

-- Vistra Corp Buys 2 More PA Natural Gas Power Plants; Facebook/Meta Buys 20 Years Of Power From Beaver Valley Nuclear Plant; 18 PA Power Plants Now Locked Up To Feed A.I. Data Centers [PaEN]