If you suspect data centers are impacting your electric bill in Pennsylvania, now is a good time to speak up.
The Pennsylvania Public Utility Commission (PUC) drafted a plan for how big electricity users — like data centers — pay for power and interact with the grid. That kind of plan is called a “model tariff.”
PUC’s draft includes safeguards to make sure regular households, especially families with lower incomes, aren’t paying more because of these big energy users.
The PUC’s latest efforts come at the same time customers are reporting rate increases from their electric companies.
“Pennsylvania has a real opportunity here — if we get it right,” PUC Chairman Steve DeFrank said about the 3-2 decision to move forward with the model tariff. “Today’s tentative order is about welcoming investment and jobs while making sure existing customers aren’t stuck with the bill.”
The PUC is seeking feedback on the order over the next 30 days. You can submit comments via email or the company’s electronic system, or send a physical letter. Residents have until at least Dec. 5 to file comments. The official deadline will be announced once PUC publishes the order in the Pennsylvania Bulletin.
This order follows the commission’s work earlier this year to study how large energy users affect the grid. An April hearing gathered feedback from utility companies, industry stakeholders, consumer advocates and the general public.
The PUC oversees utilities in Pennsylvania, making sure electricity, water, gas, and other services are safe, reliable, and fairly priced.
As more ratepayers express concerns about the large-load customers increasing their electric bills, the commission has stepped in to attempt to add clarity.
Utility companies must notify customers of any proposed rate changes before submitting them to the PUC, which can approve or deny the requests. While not all changes are related to data centers, the way rates work is complex and interconnected.
The complexities of power price hikes
The PUC’s latest efforts come at the same time customers are reporting rate increases from their electric companies.
Earlier this year, PPL Electric, which serves 29 counties on the eastern side of the commonwealth, proposed a distribution rate increase of about 6.98% for residential customers, 5.31% for commercial and 2.58% for industrial. (It was postponed after PUC launched an investigation into how it could affect customers.)
The hike would fall into the category of local grid maintenance fees: how power gets from the utility company’s substation to your house.
This is separate from the federally regulated transmission fee — the cost of transporting electricity long distances from power plants — which is what primarily serves large load customers like data centers, according to Dana Burns, director of communications at the utility provider.
“PPL Electric also has signed agreements that require data center customers to pay a set amount based on their peak usage, even if they use less electricity, until the shared costs are fully covered,” Burns told Technical.ly.
The way costs are spread isn’t that straightforward, though. Distribution costs are often split among all customers, and many of PA’s latest improvement initiatives are to support data center development.
PUC’s investigation of PPL’s proposed $356 million increase will delay its implementation until at least July 2026.
Now, PPL is considering increasing its generation rate — which has been generally rising due to higher natural gas and capacity costs, also tied to data center development. On Dec. 1, it wants to increase costs from 12.490¢ per kWh to 12.953¢ per kWh. That increase is also awaiting PUC approval.