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Lawmakers press PUC on data centers as commission readies 'large load' tariff to shield ratepayers
Summary
Lawmakers pressed the Pennsylvania Public Utility Commission on how data center growth affects load forecasts and bills; the PUC said it will vote on a Large Load Model tariff to protect existing customers and may require large users to bring generation or pay to avoid stranded costs.
Lawmakers used the PUC budget hearing to press regulators about accelerating data-center development, its effects on load forecasting, and protections for existing ratepayers. The commission told the House Appropriations Committee it expects to consider a "Large Load Model" tariff in coming weeks intended to insulate existing customers from stranded costs created by large new electric loads.
"If we're bringing these large users on, they're going to have to bring their own generation to ensure the lights stay on for the rest of us," said Steve DeFrank, chairman of the Pennsylvania Public Utility Commission, describing the commission's approach to balancing economic opportunity and grid reliability. DeFrank said the tariff would allow third-party build-outs and accelerate necessary infrastructure while protecting ratepayers from paying upfront build costs if a proposed large load fails to materialize.
Lawmakers pointed to the recently passed Load Forecasting Accountability Act and asked whether state-level action is sufficient to temper speculative projections used in PJM planning. DeFrank said Pennsylvania will enter formal agreements with other restructured states to compile utility data and check PJM's load forecasts; he noted PJM reduced a prior load forecast by about 5 gigawatts after legislation.
The commission said it hopes to bring the Large Load Model tariff to a final order in March or April and that the tariff is only a suggested framework unless the General Assembly codifies related protections into law. Legislators pressed for confirmation that the PUC has or will secure the technical staff to perform audits and load-forecast reviews; DeFrank said the agency has engaged consultants and is repositioning staff across commissioners’ offices but may need additional hires.
Lawmakers emphasized that, while data centers bring economic opportunity, the state must avoid shifting infrastructure costs to residential customers. The PUC framed its work as striking a balance between facilitating development and protecting current ratepayers.
