The Pennsylvania Public Utility Commission (PUC) has scheduled a public hearing to assess the impacts of large electricity load users on the state's electrical grid.
The hearing, which will take place on April 24, was introduced by PUC Chairman Stephen M. DeFrank and was passed unanimously by the commission.
DeFrank said that the hearing will address how the state can manage the growing demand emanating from data centers without harming existing ratepayers or compromising grid reliability.
The hearing will feature three expert panels representing electric distribution companies, large energy users, and consumer advocates. The PUC also says it will accept written testimony to support the development of a model tariff for large-load interconnections.
As part of the hearing, the PUC will solicit input on several issues. These include, how to define a large-load customer by megawatt threshold, cost sharing for infrastructure upgrades, and timelines for interconnection studies.
In addition, according to local reporting, the hearing will consider standby rates for backup generation, phased-in usage schedules, contract exit fees, and whether customers should be allowed to fund their own upgrades.
Commenting on the decision, DeFrank said: “These customers have the potential to bring benefits like job creation and grid innovation … but we must also ensure that existing customers are protected and that planning is responsible.”
Additional details about the agenda, panelists, and public participation options for the hearing are expected to be released in the coming weeks.
Pennsylvania has seen significant growth in its data center sector over recent years, with several hyperscalers setting up shop in the state. According to an Environment America report, there are 71 operational data centers in the state, as of January 2025. The data centers currently account for around 3.2 percent of the state's overall energy use.
Last October, it was reported that Amazon was eying a significant expansion in the state and was in discussions to potentially develop a data center campus at the River Pointe Commerce Center in northern Northampton County.
Several other states have brought forward new rules to manage data center growth and mitigate the sectors impacts upon existing ratepayers. Last October, American Electric Power Ohio filed a settlement that will require new data center customers to pay for a minimum of 85 percent of the energy they say they need each month, even if they use less, to cover the cost of infrastructure required to bring electricity to those facilities.
