Tuesday, October 6, 2026

PUC Chairman Calls For Preemption Of Local Decisions On Needed Electric Generation Facilities; A Firm Bring Your Own Power Before Data Centers Connect To The Grid; PUC Study Identifies 21 Potential Generation Sites

On October 6,
Public Utility Commission Chairman Stephen DeFrank called for discussing a mechanism to preempt local land use decisions on needed electric generation in light of the significant challenges faced by Pennsylvania and PJM grid in meeting spiking energy demand from data centers.

His remarks came before a House Energy Committee information session on the report the PUC issued on September 14 dealing with rapid data center growth and grid reliability in Pennsylvania and PJM.  Read more here.

The study found, based on current load forecasts, the electric grid faces serious reliability risks and PJM fails to meet its reliability planning standard as early as 2027 through 2030.

By 2030, the study said, the modeled reliability risk is nearly six times worse than PJM's planning standard.

PUC Chairman Steve DeFrank at the time the study was released-- “Pennsylvania is at an energy crossroads. 

“Data center development brings significant opportunities, but that growth cannot come at the expense of the families and businesses that already depend on reliable and affordable electric service. 

“This analysis sends a clear warning: electricity demand and supply are moving out of balance, and the status quo is not sustainable. 

“We need urgent action at PJM and a broader Pennsylvania energy strategy that makes sure our supply of electricity keeps pace with demand.”

3 Recommendations For Action

In response to a question from a House Energy Committee member about what specific actions the General Assembly can take to address these issues, Chairman DeFrank said--

Energy Plan

“I think that we've heard all along here, you need a comprehensive energy plan. 

“I mean, this state has not had a comprehensive energy plan in over 20 years. 

“We are the number two energy state in the country and we don't have a comprehensive energy plan. 

“So that's the first and foremost.

Local Preemption

“We talk about increased [electric] generation. I think you really have to talk about a preemption in siting or something with generation because we need it. 

“This entire grid needs increased generation, so there has to be a way of siting generation if a local community doesn't want it. 

“I mean, we do that with transmission [lines]. We have preemption with transmission, but we don't have it with generation. 

“So I think that's an important point. I think anytime you look at a comprehensive energy plan, something like siting will be a component to that.”

Bring Your Own Generation

“Requiring data centers to bring their own generation, I think it is important. And I switched my position on that. 

“Two years ago, I would've said connect them. We'll figure it out later. 

“We're seeing numbers here. Two capacity auctions have happened where we missed reserve margin significantly. It wasn't close. I mean, we missed the reserve margin-- six, eight gigawatts, I believe, right? I mean, it was significant. 

“We're seeing all those things happen. That's what caused me to change my position. I think data centers are an incredible opportunity, but we have to get it right. 

“If we don't manage it and put our heads in the sand, we will have disaster.”

We Have To Get This Right

“I grew up in Southwestern Pennsylvania. I talk about the coal industry all the time. 

“That's an industry that gave families in my area an opportunity that they never would've had otherwise. 

“But I also grew up with some of the ramifications of that. I grew up next to orange creeks and things like that. 

“I am well aware of acid mine drainage, and so that's some of the effects of that because it wasn't well planned. 

“Here, it's going to be much different, because if we don't have this well planned, we're not talking about orange creeks. 

“We're talking about lights going out. That's the ramifications here. 

“So we have to get this right. 

“This is an incredible opportunity, but we have to address the problems that we're faced with.”

Click Here for a copy of all written testimony.

Click Here for a video of the information meeting.

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.

PUC Study Identifies 21 Generation Sites

The Public Utility Commission will hold a meeting October 7 to hear a presentation from KeyLogic, LLC on a preliminary report on recommendations for electric grid modernization to support the redevelopment of 21 deactivated energy sites across the state. (formal notice)

The meeting will be held in Hearing Room 1 of the Keystone Building from 9:30 a.m. to 4:00 p.m.  The meeting will be available online via the PUC’s livestream. 

The presentation will focus on "data-driven recommendations to support energy growth and grid modernization across this Commonwealth" at 21 sites identified in the report.

The presentation will be followed by comments from panelists.  Read more here.


[Note: House Bill 502 (Steele-D-Allegheny) and Senate Bill 502 (Kane-D-Chester)  includes Gov. Shapiro’s Reliable Energy Siting and Electric Transition (RESET) Board to address siting issues. Read more here.]

Resource Links:

-- PUC Study Warns Rapid Data Center Growth Will Cause PJM Electric Grid To Fail Reliability Standard In 2027, If No Further Actions Taken  [PaEN] 

-- PUC: Fewer, But Bigger Power Outages Impacted Nearly 2.9 Million Electric Customers In 2025, The Same As In 2024; But More Than Double The Number Of Customers Were Impacted By Major Outage Events [PaEN] 

-- PUC To Seek Comments On Regulations To Give Electric Utilities New Tools To Manage Data Centers During Emergency Periods Of Strained Electricity Supplies And Curtailments To Maintain Grid Reliability [PaEN] 

-- PUC Holds Oct. 7 Meeting To Hear Presentation On Recommendations For Grid Modernization To Develop New Electric Generation At 21 Deactivated Energy Sites To Support Large Loads  [PaEN]

-- Public Utility Commission To Hold Nov. 17 Technical Conference On Utility Costs Driven By A.I. Data Centers, Other Large Loads [PaEN] 

[Posted: October 6, 2026] PA Environment Digest

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