PPL proposes framework to charge data centers for electrical infrastructure investments

PPL Electric Utilities has filed a proposal with the Pennsylvania Public Utility Commission to introduce a new Customer Protection Transmission Rider (CPTR). This framework aims to enhance transparency regarding transmission costs for all customers and directly assign certain transmission network upgrade costs associated with large energy users, such as data centers, to those specific customers. This initiative is designed to ensure that the economic growth spurred by increasing interest from large energy users in Pennsylvania occurs responsibly, without unduly burdening existing residential and small business customers with the significant electrical infrastructure investments required.

Christine Martin, president of PPL Electric Utilities, stated that the proposal seeks to make transmission costs more visible on customer bills and provide a mechanism to allocate costs to customers driving new transmission investments. Currently, these costs are embedded in supply charges, making them less transparent. The proposed CPTR would replace the existing Transmission Service Charge, creating a dedicated line item for transmission costs.

If approved, the CPTR is projected to take effect in the first quarter of 2028. PPL Electric Utilities, which serves approximately 1.5 million homes and businesses in eastern and central Pennsylvania, believes this will lead to a clearer view of costs and a fairer distribution of infrastructure investment burdens among its customer base.