Press Release

PUC Launches Review of Grid Impacts from Data Center Growth

Published on 3/27/2025

Filed under: Electric Gas

Commission Schedules Late-April Hearing to Examine How High-Demand Customers Impact the Grid, and How to Protect Existing Utility Customers

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted 5-0 to approve a motion by Chairman Stephen M. DeFrank to convene a public hearing exploring the growing impact of large-scale electric customers — including data centers and other high-energy users — on the state’s electric grid.

“This is a critical moment for Pennsylvania’s energy future. As we welcome new industries and evolving technologies, we need to strike the right balance — protecting consumers, supporting utilities, and fostering smart growth,” noted Chairman DeFrank. “This hearing is about making sure we have fair, transparent, and forward-looking rules that benefit everyone.”

The hearing, scheduled for the afternoon of April 24, 2025, in Hearing Room 1 of the Commonwealth Keystone Building in Harrisburg, will bring together electric utilities, major energy users, and consumer advocates to examine the challenges and opportunities presented by these high-demand customers.

The Commission is seeking testimony and input on a range of topics that will help inform future policy, including the development of a model tariff to guide how large load customers connect to the grid.

Topics include:

• How to define large load customers, including appropriate megawatt (MW) thresholds
• Requirements for deposits or financial security from new large load users
• Cost-sharing and contributions toward necessary infrastructure upgrades
• Minimum contract terms and exit or early termination fees
• Timelines and costs associated with interconnection studies and agreements
• Phased-in usage (load ramping schedules)
• Tariff differences between firm service and interruptible customers
• Backup generation and related standby rates
• Transparent and equitable cost structures
• Whether customers can self-fund and construct system upgrades, and how to account for that in tariffs
• Opportunities for expedited interconnection
• Best practices from other states or regions
• Any other policies or procedures that support efficient and fair interconnections

“Across Pennsylvania and the broader region, we’re seeing increasing interest from large electricity users — especially hyperscale data centers that support artificial intelligence and other operations,” said Chairman DeFrank. “These customers have the potential to bring tremendous benefits to our state, from job creation and economic growth to energy innovation and grid stability. But we must also ensure that existing customers are protected, that the rules are clear, and that utilities can plan infrastructure upgrades responsibly.”

The hearing will feature three expert panels representing electric distribution companies, large load customers, and public advocates. The Commission will also accept written comments as part of the public record, followed by the development of a proposed model tariff by Commission staff.

More details about the April 24 hearing — including the agenda, panelists, and information on how to view or participate — will be announced in the coming weeks.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X (formerly Twitter), Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: M-2025-3054271

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov