PUC Advances Plan to Balance Data Center Growth and Consumer Protection

PUC Advances Plan to Balance Data Center Growth and Consumer Protection

Published on 11/6/2025

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Tentative Order outlines model tariff for large-load customers, aiming to strengthen reliability and ensure new users pay their fair share

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today voted 3-2 to advance its ongoing review of large-load growth - including hyperscale data centers - by issuing a Tentative Order proposing a statewide model tariff to guide how large electric customers connect to the grid and share costs responsibly.

This action marks another step forward in the Commission's continuing process to address the growing impact of data centers and other energy-intensive users across Pennsylvania's electric grid.

"Pennsylvania has a real opportunity here - if we get it right," noted PUC Chairman Steve DeFrank. "Today's tentative order is about welcoming investment and jobs while making sure existing customers aren't stuck with the bill. We're proposing clear, transparent rules that help interconnect large loads quickly and responsibly - protecting reliability, preventing cost-shifts, and avoiding stranded costs. I urge all parties to bring us practical, balanced feedback over the next 30 days so we can finalize a durable approach that works for everyone."

Background

In March 2025, the Commission launched a proceeding to examine the grid impacts of data-center growth and other high-demand electric users, followed by a hearing in April 2025 that brought together utilities, consumer advocates, industry stakeholders, and members of the public.

The Tentative Order adopted today reflects that input and outlines a model approach that utilities can use to help ensure timely, transparent, and fair interconnection of large loads, while protecting existing ratepayers and preserving long-term system reliability.

Highlights of the Tentative Order

• Defines large-load customers and aligns Pennsylvania's approach with emerging practices across the PJM region.
  
  
• Strengthens protections for existing customers through cost-causation measures - including contributions-in-aid-of-construction, tiered collateral, and minimum contract terms.
  
  
• Encourages large-load customers to contribute toward programs that support low-income customers.
  
  
• Encourages faster, more transparent interconnections through clustered study timelines, optional independent studies, and limited customer-built upgrades meeting utility standards.
  
  
• Incentivizes flexibility by providing rate options for customers willing to accept interruptible or flexible service during peak system demand.
  
  
• Invites public feedback to refine these guidelines before a final order is issued.
  
  

How to Comment

The Tentative Order will be published in the Pennsylvania Bulletin, triggering a 30-day public comment period. Interested parties may file comments as follows:

• By mail:
  Secretary, Pennsylvania Public Utility Commission
  Commonwealth Keystone Building, Second Floor
  400 North Street
  Harrisburg, PA 17120

• Electronically:
  Via the PUC's e-File System

• Courtesy copy:Please email a Word-formatted version of comments [email protected] (attachments = 3MB).

Note: Reply comments will not be permitted.

A copy of the full Tentative Order along with other information related to the PUC's study of issues related to large-load customers is available in the PUC public docket for this case:
M-2025-3054271

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, 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