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Technical.ly
04-08-2025
- Business
- Technical.ly
What Pennsylvania's data center boom could mean for your electric bill
As data center developers invest billions in Pennsylvania, the state is weighing who should pay the literal price of their arrival. The Public Utility Commission is set to develop a proposed model tariff — a framework outlining a utility's rates, charges, and terms of service — for 'large load' customers like data centers. The PUC held a hearing in the spring to examine how to protect household consumers when companies or organizations that use a significant amount of electricity, such as data centers, connect to the grid. While the PUC has some regulatory power itself, what it determines from the hearing will likely be used to inform lawmakers' decisions, said Rep. Rob Matzie (D–Beaver), former chair of the House Consumer Protection, Technology and Utilities Committee which frequently works with the PUC. 'The commission is working to review this information in a timely manner,' said PUC press secretary Nils Hagen-Frederiksen. He did not provide a timeline for any potential decision. If projects don't pan out, residents could face 'stranded costs' Dozens of data centers are planned or already built in Pennsylvania, and state officials are pushing to make the Keystone state a leader in landing the facilities. In testimony, the state Office of Consumer Advocate emphasized protecting residents from stranded costs — where utilities invest in improvements for projects that don't materialize or use the projected electricity, leaving those households with the bill. 'Any stranded investments from large load customers paid by ratepayers hinders economic development by raising the cost to businesses and reducing spending by residents,' said Darryl Lawrence, acting consumer advocate for the Office of Consumer Advocate, in submitted testimony. The testimony from consumer advocates, electricity distribution companies, and companies that build or rely on data centers will 'inform future policy' and the creation of the model tariff, according to the PUC's news release announcing the hearing. Ohio has already enacted similar regulation It's a national concern: how to parse out charges as demand for electricity grows. Some states have been addressing the issue. Ohio's PUC this month ordered that data centers must pay a minimum of 85% of their highest forecasted electricity use, even if they use less, to cover infrastructure costs. AEP Ohio, an electric company, previously asked state regulators to require data center developers to pay for at least 90% of the electricity they requested for 10 years, whether they use that much or not. Lawmakers in Georgia are dealing with how to avoid costs shifting to small ratepayers, while increasing the state's energy capacity. Pennsylvania will grapple with the issue in the coming months: Almost 60 parties — including developers, electricity companies, advocacy groups, and citizens — submitted public comments after the hearing. And industry leaders have their eyes on Pennsylvania, with executives from Google, Amazon, Duquesne Light Co., FirstEnergy Pennsylvania, the trade organization Data Center Coalition, and others testifying at the PUC hearing. Amazon announced a $20 billion plan to build two data centers in Bucks and Luzerne counties earlier this year. And President Donald Trump and U.S. Sen. Dave McCormick recently announced $90 billion in AI, energy, and data center investments in Pennsylvania at an AI and energy summit. Local energy companies want developers to foot costs Duquesne Light Co. requires large load developers to handle the costs of their own studies and infrastructure investment, said Jamie Davis, director of rates, energy procurement, and federal/RTO affairs for Duquesne Light Co., in testimony to the PUC. Those costs should fall to large load developers when there is no benefit to other customers, he said. DLC also recommends that large load customers generate their own power to reduce any impacts on existing customers and the grid. The company serves over 600,000 customers in Southwestern Pennsylvania. Officials at FirstEnergy Pennsylvania, which serves over 2 million customers in the state, told the PUC in testimony for the hearing that developments such as data centers can pose new challenges. 'The large loads we are talking about today often require significant investment in the transmission system,' said Kelly Gower, vice president, Finance & Regulatory for FirstEnergy Pennsylvania. 'The requests we are discussing are often for new customers to be situated in geographic areas where electrical systems were not designed to support loads needed anywhere near those which are now being requested.' Protections to balance the legislative push to ease permitting State legislators are introducing an increasing number of bills specifically addressing the influx of data centers to the state, with many bills streamlining permitting. Matzie said he will introduce legislation aimed at protecting Pennsylvanians from increased costs or blackouts and brownouts, a growing concern as data centers put stress on the grid. The language of the bill, which he expects will be finalized and introduced in the fall, is dependent on insights from the PUC. 'We value the expertise over at the Public Utility Commission and what they do and how they do it, so that's a key component,' he said. 'They will be key drivers in coming up with what this final language will look like.'
Yahoo
22-02-2025
- Business
- Yahoo
‘Imminent health threats' to rural water customers lead judge to order temporary takeover
This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for Talk of the Town, a weekly newsletter of local stories that dig deep, events, and more from north-central PA, at BELLEFONTE — A private entity is poised to take temporary control of a troubled rural water company after a judge approved an emergency request by Pennsylvania's consumer advocate. Pennsylvania American Water Company — one of the state's largest investor-owned utilities — should take over management of privately owned Rock Spring Water Company, Administrative Law Judge John Coogan ordered Thursday. The appointment, which requires approval from the state Public Utility Commission to take effect, could offer some relief to the company's 1,000 customers who've endured more than a decade of unreliable service in Centre County as regulators decide on a permanent solution. Nils Hagen-Frederiksen, a spokesperson for the PUC, told Spotlight PA that regulators 'will work to address this matter in a timely fashion.' Next steps include reviewing the judge's emergency order and briefs from those involved in the case, which are due in a week, he said. The decision came as a surprise to stakeholders and goes against requests from Rock Spring owner J. Roy Campbell, lawyers for the company, and even Pennsylvania American. All asked the judge to let the nearby State College Borough Water Authority assume interim control. 'It's out of left field, but at least somebody will be there to answer the phone,' James Bryant, an attorney for Rock Spring, told Spotlight PA. Rock Spring has racked up dozens of regulatory violations — including for failing to protect the system's water source, shutting off service without proper notice, and letting a leak go unfixed for six months — and tens of thousands of dollars in unpaid civil penalties as part of a yearslong legal battle with the Department of Environmental Protection over excessive water loss. A June Spotlight PA investigation found that Rock Spring, state regulators, and elected officials failed those who rely on the system in Ferguson Township. Efforts to find new ownership have gone nowhere, while years of neglect have led to deteriorating infrastructure, low water pressure, regular outages, and sometimes lengthy boil water advisories. The utility commission even erroneously told a customer in 2018 that it doesn't regulate the company. So after years of inaction, residents resigned to living with shoddy service. Issues with Rock Spring were referred to the Bureau of Investigation and Enforcement, a division within the PUC, on May 23. The unit then launched a review of the company. The state regulatory process is lengthy, with no guaranteed outcome. As part of the review, a two-day hearing is scheduled for late April. But customers can't wait until the spring, the consumer advocate argued in its emergency request for another provider to take over service. The State College water authority has talked about acquiring Rock Spring's 20-mile water system — which needs at least $13.5 million in repairs — for years. In December, Campbell signed a letter of intent to sell to the municipal entity for $65,000. The state Office of Consumer Advocate, which urged regulators to provide emergency relief to prevent 'irreparable' injury, identified the municipal authority as the most logical choice for an interim operator, called a receiver. But uncertainty over regulatory authority and a desire for quick relief for customers prompted the decision to appoint Pennsylvania American as the receiver, Coogan wrote in a 26-page order. Because the PUC primarily regulates private utility companies, the judge had reservations about whether a municipal authority could take over, especially when the State College authority opposed subjecting itself to the commission's jurisdiction and regulations. The water authority had instead asked the administrative law judge to recommend it become the receiver, hoping it would make a Centre County judge more comfortable approving a local request to let the municipal entity take over. Rock Spring's lawyers previously tried this approach, but their request was denied, with the judge saying he could not usurp the PUC's powers. While not necessarily opposed to the idea, the Office of Consumer Advocate and investigators for the PUC had concerns over how long it might take for State College to take the helm. A Pennsylvania American representative told Spotlight PA that the company is reviewing the judge's decision. During a recent hearing, David Zambito, an attorney for the company, said Pennsylvania American could handle operations but thinks State College was the best option. Plus, if the receiver isn't the ultimate buyer, the utilities will have to 'unravel' the cost of repairs, he said. 'Somebody has to pay to remediate the Rock Spring system,' Zambito said. State College water authority officials met with their lawyer to discuss the decision Friday morning, Katie McCaulley, assistant executive director, told Spotlight PA. 'At this time, we are still intent on the long term and continuing the discussions and negotiations of the acquisition of RSWC,' she wrote in an email. and help us reinvigorate local news in north-central Pennsylvania at Spotlight PA is funded by foundations and readers like you who are committed to accountability and public-service journalism that gets results. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
