HARRISBURG, PA — The Pennsylvania Public Utility Commission (PUC) has unanimously approved a motion to convene a public hearing addressing the growing influence of large-scale electric customers on the state’s energy grid. The hearing, set for the afternoon of April 24, 2025, in Harrisburg’s Commonwealth Keystone Building, will bring together stakeholders to evaluate the challenges and opportunities linked to high-energy users such as data centers and other industrial facilities.
“This is a critical moment for Pennsylvania’s energy future. As we welcome new industries and evolving technologies, we need to strike the right balance — protecting consumers, supporting utilities, and fostering smart growth,” stated Chairman Stephen M. DeFrank, who introduced the motion at the PUC meeting on March 27. “This hearing is about making sure we have fair, transparent, and forward-looking rules that benefit everyone.”
Focused Examination of Key Policy Issues
The hearing aims to foster dialogue between electric utilities, major energy users, and consumer advocates as large-scale electric customers become an increasingly significant presence in Pennsylvania. Their heightened energy demand presents unique challenges to the grid, including the potential need for infrastructure investments and the development of fair cost-sharing mechanisms.
The Commission will accept testimony and explore a variety of topics, including but not limited to:
- Defining large-scale electric users, including establishing appropriate megawatt (MW) thresholds.
- Processes and requirements for deposits or other forms of financial security from these customers.
- Sharing costs for infrastructure upgrades and determining equitable contributions.
- Structuring minimum contract terms, exit fees, and early termination penalties.
- Studying interconnection timelines, costs, and phased-in usage (load ramping schedules).
- Differences in tariffs for firm service versus interruptible customers.
- Transparency in cost structures and opportunities for expedited interconnection.
- How self-funded infrastructure upgrades by customers might be integrated into tariffs.
- Reviewing best practices from other states or regions to inform Pennsylvania’s approach.
According to Chairman DeFrank, “Across Pennsylvania and the broader region, we’re seeing increasing interest from large electricity users — especially hyperscale data centers that support artificial intelligence and other operations. These customers have the potential to bring tremendous benefits to our state, from job creation and economic growth to energy innovation and grid stability. But we must also ensure that existing customers are protected, that the rules are clear, and that utilities can plan infrastructure upgrades responsibly.”
Expert Panels and Policy Development
The hearing will include three dedicated panels featuring representatives from electric distribution companies, large load customers, and consumer advocacy groups. This format is designed to ensure that diverse perspectives are heard and considered during the proceedings.
To complement the hearing, the PUC has announced that it will accept written comments from the public to further enrich the record. Once the hearing and public comment period conclude, Commission staff will use the input gathered to develop a proposed model tariff. This tariff will aim to establish clear guidelines for utilities and large-scale users navigating interconnections and infrastructure requirements.
Broader Implications for Pennsylvania
The hearing spotlights Pennsylvania’s ongoing efforts to adapt its energy landscape to the demands of an evolving economy. The arrival of hyperscale users, such as data centers, creates new opportunities for economic development, job creation, and technological advancement. However, these advances must be carefully balanced with the need to protect existing consumers, maintain grid reliability, and provide clear, equitable rules for all stakeholders.
More details about the April 24 hearing, including the agenda, participant lists, and specific instructions on how to observe or engage, are expected to be made available in the coming weeks.
By gathering insights and proposing a structured tariff model, the PUC is setting the stage for Pennsylvania to position itself as a leader in welcoming high-energy industries while ensuring fairness and sustainability within its energy ecosystem.
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