PUC witness tells committee the commission can deny large data‑center contracts; members weigh moratorium and Act 250 role

Greg Faber, testifying for the Public Utility Commission, told the Finance Committee the commission has authority to review interconnection agreements and special contracts for large electric loads and can decline agreements if the terms or system impacts are improper.

"For the record, I'm Greg Faber with the PUC," Faber said, and explained the PUC's current role: the commission examines interconnection work, transformers and transmission upgrades and reviews special contracts between utilities and large users. "We do have that authority to say no," he said, describing interconnection review and the special‑contract process.

Faber identified House bill H.727 as the vehicle that focuses PUC review on interconnection and special contracts rather than on land‑use or siting. He cautioned that language in some proposals would require a broad investigation for which the commission has no dedicated appropriation or internal expertise.

Committee members and the witness agreed that siting and building permits should continue to run through Act 250 and local town review while the PUC concentrates on grid connection and system impacts. Faber described the system impact study utilities perform to enumerate required upgrades — sometimes requiring "five new transformers" or new transmission lines — and said the cost of those upgrades, often paid up front by the applicant, can be substantial and potentially stop a project.

Members raised site examples and infrastructure considerations: the former Vermont Yankee site and local solar projects were discussed as locations and competing uses; Faber noted Vermont's fiber backbone is an attractive asset for data centers but said Vermont's rates are not the lowest in the country. Committee members questioned the local employment benefits of data centers; Faber characterized such facilities as large server warehouses that usually do not provide many ongoing local jobs.

The PUC and members noted that although applicants usually pay upfront for grid upgrades, the region may later share maintenance and long‑term upgrade costs, creating potential long‑term exposure for ratepayers and the regional grid.

The transcript records no formal committee vote on H.727 or a moratorium. Members were urged to review submitted department comments and the draft language; no final decision was reached in the session recorded in the transcript.