On October 1 by a vote of 4-0, the Commission approved a Tentative Order seeking public comment on proposed changes to how Pennsylvania electric utilities prepare for and respond to periods of tight electricity supply, including new procedures for electric distribution companies addressing large loads such as data centers.
At the center of the proposal is a key consumer protection principle: certain large new loads that have not secured sufficient new electric capacity to support their demand would be subject to curtailment before other customers when additional load reductions are needed to maintain reliability.
The Commission is also proposing that large loads such as data centers not be classified by electric distribution companies as critical loads that would be exempt from curtailment during pre-emergency or emergency events.
PA Grid Vulnerability Report
This proposed regulation builds on a Sept. 10 motion offered by Vice Chair Barrow and unanimously approved by the Commission directing PUC staff to outline proposed updates that Pennsylvania's electric distribution companies must make to their emergency electric load-control procedures.
It also follows a recent independent analysis commissioned by the PUC warning that rapidly growing electricity demand – driven largely by data center development – could create serious reliability risks if electric supply does not keep pace.
Under the study's reference scenario, the regional grid fails to meet PJM's reliability planning standard from 2027 through 2030, with modeled reliability risk by 2030 nearly six times that standard.
Against that backdrop, the Commission is moving forward with specific proposals to strengthen Pennsylvania's consumer protections and prepare electric utilities for periods when available resources may be insufficient to reliably meet demand.
Putting Consumer Safeguards In Place
PJM Interconnection, the regional grid operator serving Pennsylvania and 12 other states and the District of Columbia, has proposed a new Interim Resource Adequacy Service (IRAS) intended to help manage periods when available electric resources may not be sufficient to reliably meet demand.
Under the PUC's Tentative Order, Pennsylvania electric distribution companies would prepare for those situations by identifying large loads in their service territories and establishing clear procedures for responding when PJM calls for load reductions.
Among the proposals, electric utilities would be required to--
-- Identify large loads – Develop and maintain a registry of large loads within their service territories, giving utilities, PJM and the PUC better information to prepare for rapidly growing electricity demand.
-- Plan for potential curtailments – Establish clear procedures for identifying and notifying large-load customers that may be required to reduce their electricity use when PJM determines that additional load reductions are needed to maintain reliability.
-- Prioritize large-load reductions – Establish procedures to reduce eligible new large loads that have not secured sufficient new electric capacity before shedding load from other customers during an IRAS event.
-- Strengthen emergency protections – Update pre-emergency and emergency procedures so that large loads such as data centers are not classified as critical load exempt from curtailment during those events.
The Commission is seeking public and stakeholder input on these proposals, along with other steps that may be appropriate as Pennsylvania and PJM respond to unprecedented load growth.
Part Of A Broader Commission Effort
This action is one part of a broader series of PUC initiatives focused on protecting consumers and reliability as data centers and other large-load customers reshape electricity demand.
Those efforts include the Commission's model tariff for large-load customers, designed to help ensure that customers requiring 50 megawatts or more of electricity bear the costs they add to the electric system rather than shifting those costs to other ratepayers; implementation of Act 45 of 2025, strengthening PUC oversight of utility load forecasts submitted to PJM; and Commission actions addressing PJM's proposed Reliability Backstop Procurement and Interim Resource Adequacy Service.
November 17 Technical Conference
The PUC is also examining the allocation of costs associated with large computational loads, with a Technical Conference scheduled for Nov. 17 to gather input from utilities, consumer advocates, large-load customers and other stakeholders.
Together, these efforts are focused on a common goal: allowing Pennsylvania to respond to economic growth and rapidly changing electricity demand while safeguarding existing customers and preserving reliable electric service.
Next Steps And Public Comment
Interested parties will have 30 days following publication to submit comments on the Commission's proposals, followed by an additional 15 days for reply comments.
Following review of those comments, the Commission anticipates considering a Final Order at its Jan. 28, 2027, public meeting, directing Pennsylvania electric distribution companies to file updated procedures.
Additional details, including the Commission's specific proposals and questions for public comment, are available in the Tentative Order.
Read the entire PUC PA Bulletin notice for more information.
Documents related to this action can be found at PUC Docket No.: M-2026-3064961.
Related Articles This Week:
-- PUC Invites 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]
-- DEP To Hold Public Meeting/Hearing Nov. 23 On Chapter 105 Permit For Project Atlas A.I. Data Center Complex In Lehigh County [PaEN]
-- DEP Sets Nov. 20 Hearing On Stormwater Permit For PPL Stanton Summit Transmission Line Rebuild In Lackawanna County [PaEN]
-- PJM Extends Maximum Generation Alert To Oct. 14 Due To Unusually Warm Weather, Equipment Outages; Calls On Demand Response To Reduce Power Load [PaEN]
-- PA Capital-Star: PJM Interconnection Issues Alerts Warning Of Tight Electricity Supplies
-- PJM Issues Maximum Generation Alert For Oct. 13 Due To Unusually Warm Weather, Equipment Outages; Received DOE Order To Switch Data Centers To Backup Generation, If Needed [PaEN]
NewsClips:
-- Altoona Mirror - Robert Swift: PUC/Team PA Report Identifies 21 Possible Sites For A.I. Data Center Power Plants
-- PA Capital-Star: PUC/Team PA Study Identifies 21 Potential Sites For A.I. Data Center Power Plants
-- Axios-Pittsburgh: Report: Pennsylvania Natural Gas Power Generation To Grow 15% By 2030 Due To A.I. Data Center Demand
-- Utility Dive: Federal Energy Regulatory Commission Rejects Most Of PJM’s ‘Bring Your Own Power’ Data Center Load Plan Saying It Intrudes On State Jurisdiction, May Be Discriminatory [FERC Rejected PJM’s Backstop Energy Plan Earlier]
-- PennLive/LehighValleyLive: A.I. Data Centers Have A Shelf Life, Who Pays For Cleanup In PA When They Close Years From Now?
-- Wall Street Journal: ‘Phantom’ A.I. Data Centers Are Demanding More From The Power Grid Than They Need Leading To Higher Electricity Rates
-- AP: US Is Reviving Shuttered Nuclear Power Plants To Meet Growing A.I. .Data Center Electricity Demand [Includes Three Mile Island]
[Posted: October 16, 2026] PA Environment Digest
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