Pennsylvania Utility Commission one step closer to increasing consumer protections against data centers

The Pennsylvania Utility Commission is one step closer to trying to increase protections for consumers amid the rapid development of data centers. 

On Thursday, the commission voted unanimously to advance a tentative order that would change how electric utility providers prepare for and respond to situations when the supply is strained.

"This is an important issue to maintain reliability for our grid,"  Pennsylvania Utility Commission Chairman Stephen DeFrank said.

The PUC said the proposal centers on the idea that when power runs short, new data centers and other large users, which haven't secured enough electricity, would be among the first to get cut.

A part of the proposed order would also ensure these large users aren't classified by electric providers as "critical loads," meaning they're not on the list of customers protected from power cuts during grid emergencies.

The proposal follows a recent independent study commissioned by the PUC that found the region's grid won't meet reliability standards for the next several years, and the risk of power shortages could be nearly six times higher than what's considered acceptable by 2030. 

"We're seeing inadequate increases in new supply into the capacity market, and that's resulted in a system-wide reliability shortfall," Pennsylvania Utility Commission Vice Chair Kimberly Barrow said at a September meeting.

The proposal, in part, is tied to a proposal by the regional grid operator, PJM Interconnection, for a new Interim Resource Adequacy Service that would help manage periods when electric supply isn't sufficient to meet demand. Under PUC's order, utility companies would have to establish clear procedures when PJM is looking to reduce electricity.

A spokesperson for Duquesne Light Company told KDKA it is "assessing [the] order and look forward to participating in the PUC's consideration of this topic," referring to the limits during grid emergencies.

A spokesperson for First Energy told KDKA similarly that it is "looking forward to working collaboratively with the commission to further [affordability and reliability] goals and stand ready to do so."

The public will have 30 days to submit comments, with reply comments due 15 days later. The PUC expects a final order at the end of January.