PA Environment Digest Blog: Sen. Boscola To Introduce 6-Bill Package To Protect Pennsylvania Communities And Ratepayers From Large-Scale A.I. Data Centers Rapidly Expanding Across The State

On January 7, Sen. Lisa Boscola (D-Lehigh), Minority Chair of the Senate Consumer Protection and Professional Licensure Committee, announced plans to introduce a six-bill legislative package to protect Pennsylvania communities and ratepayers from large scale A.I. data centers.

"PJM now projects that most of the region’s expected load growth over the next decade will come from new data center demand," said Sen. Boscola. "PPL has reported that its data center interconnection queue may reach fourteen gigawatts by 2034."

"These projects bring economic opportunity, but they also create significant pressures on our electric grid, local water systems, and community infrastructure. Without safeguards, the costs of serving these massive loads will be shifted onto residential customers," explained Sen. Boscola.

"This package provides a balanced, reasonable framework to ensure that data center development does not raise electric bills or overwhelm local communities," said Sen. Boscola.

"It protects ratepayers from cost shifting, directs financial benefits back to the middle-class households in the affected grid-zones, and gives municipalities and the PUC the tools they need to manage reliability, noise, land use, and water impacts.

Summary Of Bills

The bills include--

-- Data Center Cost Responsibility Act. Amends the Public Utility Code to prohibit utilities from charging residential or small business customers for grid upgrades caused by large data centers and requires PUC approval of all large-load service agreements.

-- Grid Impact Fee and Customer Credit Act. Creates a per MWh impact fee on large data centers, returned as bill credits to customers within the affected electric distribution grid-zone.

-- Priority Power Act. Gives the PUC explicit authority to delay or phase in service to large new loads when immediate service would threaten reliability or impose unreasonable costs on other customers.

-- Data Center Demand Response and Flexible Load Act. Requires large data centers to participate in PUC-approved demand response programs or demonstrate equivalent onsite resources.

-- Municipal Protections for Data Center Development Act. Amends the Pennsylvania Municipalities Planning Code (MPC) to strengthen local authority over large data center siting.

Requires disclosure of projected water use and infrastructure impacts, allows municipalities to consider water capacity and affordability during review, classifies large data centers as industrial uses, authorizes enforceable noise standards including low-frequency sound, and confirms municipal authority to impose setbacks, buffering, visual mitigation, and site-specific conditions.

-- Excess Generation Cost Protection Act. Ensures the PUC prevents utilities from passing above-market costs onto ratepayers when purchasing excess generation from co-located data center generators which produce excess electricity that is sold back to the grid.

"Together, these proposals form a responsible path forward for data center growth in Pennsylvania. They help attract investment while ensuring that families and local communities are protected from the rising costs and infrastructure impacts associated with these large new loads," said Sen. Boscola.

Click Here for a copy of the announcement.

Sen. Lisa Boscola (D-Lehigh) serves as Minority Chair of the Senate Consumer Protection and Professional Licensure Committee and can be contacted by calling 717-787-4236 or sending email to: boscola@pasenate.com.

Resource Links:

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

-- 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]

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

-- 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]

-- PA House Committee Approves Legislation Giving Local Officials Greater Say Over Regional-Scale Developments Like A.I. Data Centers, Warehouses [PaEN]

-- Sen. Boscola, Sen. Vogel Introduce Bipartisan Legislation To Promote Development Of Much-Needed Solar Energy Electric Generation Facilities And Lower Costs For Consumers [PaEN]

-- In Case You Missed It: A.I./Data Center Articles - NewClips From Last Week - January 5 [PaEN]