PUC 2025 Electric Power Outlook Report Underscores Planning for Pennsylvania’s Changing Energy Landscape

PUC 2025 Electric Power Outlook Report Underscores Planning for Pennsylvania's Changing Energy Landscape

Published on 9/12/2025

Filed under: Electric

Data Centers, Electric Vehicles, and Battery Storage Among Key Drivers of Future Energy Needs and Reliability Planning

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today released its 2025 Electric Power Outlook Report, providing an overview of projected electricity demand and system reliability across the Commonwealth and the broader region.

The annual report, prepared by the PUC's Bureau of Technical Utility Services, summarizes data submitted by Pennsylvania's electric distribution companies (EDCs) and incorporates regional assessments from the regional transmission organization that manages the bulk electric system for Pennsylvania, PJM Interconnection, LLC (PJM), and the North American Electric Reliability Corporation (NERC).

According to the report, PJM is expected to maintain adequate generation capacity through 2033, provided that planned generation and transmission projects are completed in a timely manner. However, NERC has cautioned that operational risks could emerge during periods of extreme weather as soon as 2026. Longer-term forecasts highlight the need to carefully balance new generation and transmission projects with the pace of power plant retirements.

"Pennsylvania is at the center of a generational shift in how we produce and use electricity," said PUC Chairman Stephen M. DeFrank. "Our annual power outlook underscores both the opportunities and the challenges of this transition - from data centers and electric vehicles to new storage and renewable resources. The Commission remains focused on ensuring that this transition strengthens reliability and affordability for consumers while supporting the growth and innovation shaping our energy future."

The report notes that Pennsylvania's electricity usage grew nearly 3% in 2024, with significant industrial demand growth projected over the next five years - driven in large part by new large-load customers such as data centers. While these developments offer economic opportunities, they also pose challenges for forecasting, system operations, and long-term reliability planning.

Emerging Issues and Trends

Emerging national and regional trends identified in the report include:

• Rapid growth of large-load facilities, such as data centers, manufacturing, and hydrogen production.
  
  
• Increased adoption of electric vehicles, which requires planning for changing load patterns.
  
  
• Greater reliance on battery storage systems to balance variable resources like wind and solar.
  
  
• Potential "energy droughts" caused by extended periods of below-normal wind, solar, or hydro output.
  
  
• Ongoing shifts in the resource mix, with more renewable generation coming online while conventional plants retire.

NERC has recommended stronger coordination among policymakers, regulators, utilities, and system operators to ensure essential reliability services are maintained and to address barriers to new transmission and resource development.

PJM has taken several steps to try and address the issues and risks noted by NERC in terms of adding generation capacity, such as the PJM Reliability Resource Initiative (RRI). The RRI is a one-time opportunity for shovel-ready resources that can come online quickly and most effectively contribute to reliability.

The PUC continues to evaluate these issues through a technical conference and en banc hearing on large-load issues, with ongoing efforts to develop policies - including a model tariff for large-load interconnections - to help manage future challenges while protecting consumers.

The Commission's Electric Power Outlook Reports are submitted annually to the Governor, General Assembly, Office of Consumer Advocate, and affected utilities, as required by state law.

The full 2025 report, along with similar reports issued over the past 20 years, are available on the PUC website.

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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Contact:

• Nils Hagen-Frederiksen Press Secretary 717-418-2701 [email protected]
• David Hixson Deputy Press Secretary 717-772-2766 [email protected]