Press Release

PUC Moves to Address Data Center Impacts on Electric Reliability and Consumer Costs

Published on 9/10/2026

Filed under: Electric

Commission directs development of updated emergency load control rules and notices a Technical Conference on cost allocation

HARRISBURG – As rapid data center development adds significant new demand to the regional electric grid, the Pennsylvania Public Utility Commission (PUC) today took steps to examine Pennsylvania's emergency load control procedures and the allocation of costs associated with large computational loads.

By a vote of 5-0, the Commission approved a motion by Vice Chair Kimberly Barrow directing PUC staff to develop proposed updates to Pennsylvania's emergency electric load control regulations, including greater clarity regarding the order, criteria and circumstances under which customers may be curtailed during pre-emergency and emergency conditions.

“The combination of rapid load growth and tightening resource adequacy conditions requires us to carefully examine whether our existing regulatory framework is sufficient for the challenges ahead,” Vice Chair Barrow said. “We need clear and consistent procedures for managing load during pre-emergency and emergency conditions, while also examining how costs associated with large new loads should be allocated. These are complex issues, but they are issues we need to address now to support reliability and protect customers.”

The motion also directs the Commission to hold a technical conference this fall examining cost responsibility associated with large computational loads, including data centers.

Addressing Emerging Reliability Challenges

The Commission's action comes amid growing concern about the balance between rapidly increasing electricity demand and the resources available to serve that demand across the PJM Interconnection.

PJM's July 2026 capacity auction identified a system-wide reliability shortfall of 6,831 megawatts for the 2028-29 delivery year. PJM has also proposed new mechanisms – including Reliability Backstop Procurement and Interim Resource Adequacy Service – intended to address resource adequacy as large new loads seek to connect to the electric grid.

Pennsylvania's existing regulations provide a basic framework for electric utilities to manage load during pre-emergency and emergency conditions. The Commission will now examine potential updates to provide greater and more consistent direction concerning the order, criteria and applicability of curtailment.

The PUC's Law Bureau and Bureau of Technical Utility Services have been directed to prepare a Tentative Order outlining proposed changes for Commission consideration at its Oct. 1, 2026, public meeting. If approved, the proposal would be released for public comment, with a final order targeted for Commission consideration at its Jan. 28, 2027, public meeting.

Examining Cost Responsibility

Separately, the PUC will convene a technical conference this fall focused on cost allocation associated with large computational loads.

The conference will provide an opportunity for utilities, consumer advocates, large-load customers and other stakeholders to examine how costs associated with large new loads are identified and allocated, including potential impacts on customers who are not contributing to that new demand.

The Commission's actions follow Gov. Josh Shapiro's Aug. 18 Executive Order encouraging the PUC to examine data center curtailment procedures and measures addressing the allocation of data center-related costs.

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Docket No.: M-2026-3064961

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov
• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov