At a joint hearing of the House Energy and the Consumer Protection, Technology, and Utilities committees last week, witnesses testified that Pennsylvania needs the regulatory structure in place to protect electricity consumers from paying the cost for the data centers that are being built across the commonwealth. Pennsylvania consumer advocate Darryl Lawrence told the committees that “Data centers must pay their own way.” He strongly recommended that the state enact a law that “any new data centers in Pennsylvania must pay for any and all costs that they are causing that would not have been needed but for the presence of a data center.”
PJM Interconnection senior vice president of governmental and member services Asim Haque testified that within 15 years there will be a nearly 34 percent increase from current energy demand levels, and Lawrence said the proposed cost of the infrastructure to provide the new generation capacity is already being passed on to consumers.
The PUC has proposed what it calls a “model tariff for large load customers” that would make them pay for the buildouts and protect consumers. State Representative Greg Vitali has proposed legislation to revoke a 2021 tax exemption the state enacted to attract data centers. He says it’s cost the state $80 million so far and within four years, it could rise by $235 million more.
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