PUC Advances Consumer Safeguards as Data Center Growth Adds New Demands to Electric Grid

PUC Advances Consumer Safeguards as Data Center Growth Adds New Demands to Electric Grid

Published on 10/1/2026

Filed under: Electric

Proposed protections would prioritize certain large new loads for curtailment during periods of tight electricity supply

HARRISBURG - As rapid data center development adds significant new demand to the regional electric grid, the Pennsylvania Public Utility Commission (PUC) today advanced proposed safeguards aimed at protecting Pennsylvania consumers and preserving electric reliability during periods when electricity supplies may be strained.

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.

Acting now to protect consumers and reliability

Today's action 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

Today's 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.

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

The Tentative Order will be published in the Pennsylvania Bulletin, beginning a formal public comment period.

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.

About the PUC

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, 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-2026-3064961

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
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