In the near future, I will be introducing legislation to establish a comprehensive regulatory framework governing commercial data centers and other large-load energy users in Pennsylvania.

As demand for high-capacity computing infrastructure continues to grow, particularly with the expansion of artificial intelligence and cloud-based technologies, Pennsylvania is increasingly being considered as a destination for large-scale data center development. While these facilities can bring economic opportunity, they also place significant and unprecedented strain on our electric grid, raising serious concerns about reliability and cost impacts for residential and small business ratepayers.

Currently, Pennsylvania law does not provide a uniform framework to ensure that these large-load users are responsible for the costs they impose on the system, creating the risk that infrastructure upgrades and increased demand could be shifted onto everyday consumers.

This legislation addresses those concerns by:

• Requiring cost responsibility – ensuring that commercial data centers fully bear the costs associated with their interconnection, transmission, and grid impacts, rather than shifting those costs onto ratepayers.
• Establishing Public Utility Commission oversight – mandating that all contracts between utilities and data centers be filed with and reviewed by the Pennsylvania Public Utility Commission to protect system reliability and consumers.
• Creating new consumer protection funding streams – including a dedicated enhancement account to support the Low-Income Home Energy Assistance Program (LIHEAP), ensuring that vulnerable households receive additional support as energy demand increases.
• Promoting responsible energy development – by requiring large-load users to support clean and reliable energy resources and contribute to Pennsylvania’s long-term energy independence.

Additionally, the legislation establishes clear operational, disclosure, and reliability standards for data centers, including requirements related to backup generation, curtailment during grid stress events, and transparency in projected energy demand.

This proposal is a companion bill to House Bill 1834, introduced by Representative Matzie, and reflects a growing bipartisan recognition that, while data center development is inevitable, it must be done in a way that protects ratepayers, strengthens grid reliability, and ensures equitable cost allocation.

Pennsylvania has an opportunity to lead on this issue by striking the right balance between economic development and consumer protection. This legislation ensures that growth in this sector does not come at the expense of families and small businesses already facing rising utility costs.

Please join me in co-sponsoring this important legislation.