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Pa. Regulators Launch Review of Grid Impacts from Data Center Growth

The Pennsylvania Public Utility Commission on March 27 voted to approve a motion to convene a public hearing exploring the growing impact of large-scale electric customers — including data centers and other high-energy users — on the state’s electric grid.

The hearing, scheduled for the afternoon of April 24 will bring together electric utilities, major energy users, and consumer advocates to examine the challenges and opportunities presented by these high-demand customers.

The Commission is seeking testimony and input on a range of topics that will help inform future policy, including the development of a model tariff to guide how large load customers connect to the grid.

Topics include:
•    How to define large load customers, including appropriate megawatt (MW) thresholds
•    Requirements for deposits or financial security from new large load users
•    Cost-sharing and contributions toward necessary infrastructure upgrades
•    Minimum contract terms and exit or early termination fees
•    Timelines and costs associated with interconnection studies and agreements
•    Phased-in usage (load ramping schedules)
•    Tariff differences between firm service and interruptible customers
•    Backup generation and related standby rates
•    Transparent and equitable cost structures
•    Whether customers can self-fund and construct system upgrades, and how to account for that in tariffs
•    Opportunities for expedited interconnection
•    Best practices from other states or regions
•    Any other policies or procedures that support efficient and fair interconnections


The hearing will feature three expert panels representing electric distribution companies, large load customers, and public advocates. The Commission will also accept written comments as part of the public record, followed by the development of a proposed model tariff by Commission staff.

More details about the April 24 hearing — including the agenda, panelists, and information on how to view or participate — will be announced in the coming weeks.
 

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