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The state Public Utility Commission gets new data center tasks with the governor's executive order issued last week.
The PUC is preparing action on several fronts to address the impact of data centers on energy costs and energy demand.
The agency received an assignment from Gov. Josh Shapiro to ensure data centers don't shift energy costs to consumers or compromise the reliability of their electric service.
The PUC is to develop protocols to cut off electric service to data centers before other customers when the power grid is stressed and have accurate forecasts and disclosure of energy demand by data centers.
Also the PUC will establish procedures for electric utilities to charge data centers for the costs of "reliability backstop" auctions. PJM, the regional transmission operator, conducts these auctions to meet projected energy demand.
PJM plans a backstop capacity auction next month to address a shortfall in guaranteed power supplies.
The PUC is involved in discussions about next steps with policymakers, including the governor's office, utilities, other state utility commissions, PJM and consumer advocates, according to a commission statement provided to CapitolWire/State Affairs.
Given the complexity and evolving nature of these issues, the PUC isn't in a position at this time to identify specific dates, processes or forms of potential action, the statement said.
Shapiro's special counsel for energy affordability Mark Szybist -- a job created last May -- will work with the PUC on these projects.
"Without new rules and procedures from the Public Utility Commission, data centers could make the electric system less reliable and impose unjust and excessive costs on the Commonwealth's households and businesses," said Szybist.
The governor's order also includes requirements regarding state permitting and local approval for data center projects.
With a flood of 100 proposed data centers, concerns have been raised about their impact on available energy supplies.
State budget action
Any new PUC action will build on two earlier steps.
The new Fiscal Code, Senate Bill 146, includes provisions intended to give state officials information about the impact data centers have on energy demand and water use.
Data centers with a peak capacity of more than 10 megawatts are required to file annual reports on energy and water use with the state Department of Environmental Protection.
The first reports are due July 1 2027. A data center faces a $10,000 daily civil penalty if it doesn't comply.
The state budget for Fiscal Year 2025-26 requires PJM to provide power load forecasting information to the PUC. The PUC can request to review contracts and agreements that affect load forecast assumptions.
"We are looking at load forecasts now and how those load forecasts are being submitted to PJM," said PUC Chair Stephen DeFrank at the governor's press conference last week.
Tariff order
DeFrank pointed to the PUC's recent tariff order for data centers as a sign of things to come.
The voluntary tariff seeks to help utilities consider how "large-load" customers will affect consumer costs, infrastructure and reliability.
It makes large customers responsible for infrastructure and connection costs, requires financial
deposits and collateral for financial security and requires utilities to complete interconnection studies within six months.
"We said at the time that (tariff) was only the beginning, that was only the first step in making sure the causers of infrastructure upgrades are paying for those," said DeFrank.
The PUC held a public hearing about the tariff in April 2025 and voted in November 2025 to post a tentative order in the Pennsylvania Bulletin for comment. The final order was issued last May.