The commission on Thursday voted 3-2 to propose a statewide model for a tariff that electricity providers can adopt to establish rules and rates for these large-load customers. Public comment on the proposal will be taken for a 30-day period expected to open later this month.
Last week’s vote followed an April hearing before the commission on how data-center growth and other high-demand electric users are expected to impact the power grid.
Lehigh Valley electricity provider PPL Electric Utilities at that hearing shared projections of dramatic increases in power usage fueled by the development of data centers in Pennsylvania.
Parent company PPL Corp. in a year-end earnings call cited “requests in advanced stages” that would exceed 9 gigawatts of new load on the electric grid, according to the hearing testimony: “To put this into perspective, PPL Electric’s current summer peak is 7.5 GW, and the new data center requests are poised to more than double PPL Electric’s system peak within the next 5-6 years.”
The goal of the PUC’s model tariff proposal is to insulate average electricity consumers from new infrastructure and other costs that benefit these large-load users, commission spokesman Nils Hagen-Frederiksen explained.
In other words, so Grandma isn’t competing with Google, he told lehighvalleylive.com.
“Pennsylvania has a real opportunity here — if we get it right,” PUC Chairman Steve DeFrank stated about Thursday’s vote. “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.”
The PUC’s push to help Pennsylvania’s electricity providers manage the demands of these new large-load users comes as data center developers are investing billions of dollars in the Keystone State, Spotlight PA reported earlier this year. It’s an issue receiving attention in other states as well, with Ohio looking to ensure data centers cover infrastructure costs and Georgia examining how to avoid costs shifting to smaller customers, according to the report.
So what is an electric tariff in Pennsylvania?
It’s the “rules of the road” for customers to tie in to the power grid, Hagen-Frederiksen said. All electricity-distribution companies operating in Pennsylvania — like PPL Electric and FirstEnergy Corp.’s Met-Ed that also serves the Lehigh Valley — must maintain an electric tariff approved by the PUC.
These legally binding documents outline rates for different customer classes (residential, commercial and industrial); rules and regulations for service (think billing, metering and connection policies); and adjustments and riders (like fuel cost recovery and transmission charges).
The PUC has approved tariff models in the past, in support of statewide consistency for the dozen or so companies serving different regions, Hagen-Frederiksen said.
Existing electric tariffs for Pennsylvania’s power companies can be found on the PUC website at puc.pa.gov.
The tentative order on the PUC’s model tariff for large-load customers seeks to guide their connection to the PJM Interconnection LLC grid that covers 13 states including Pennsylvania and New Jersey.
The PUC says its model tariff proposal:
- “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.”
The PUC invites comments on its model tariff proposal as follows:
By mail, to:
Secretary, Pennsylvania Public Utility Commission
Commonwealth Keystone Building, Second Floor
400 North Street
Harrisburg, PA 17120
Electronically:
Via the PUC’s e-File System.
By courtesy copy:
Email a Microsoft Word-formatted version of comments to pc-puc-tus-energy@pagov.onmicrosoft.com (attachments are limited to 3MB).
Find more information on the PUC’s study of issues related to large-load electricity customers in the public docket under case number M-2025-3054271.
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