Pennsylvania Activists Urge Lawmakers to Help Curb Soaring Electric Bills
Pennsylvania activists are urging state lawmakers to implement policies to curb soaring electricity bills, attributing the price increases partly to the growing demand from data centers. They propose solutions such as requiring data centers to supply their own power and reducing utility profits. The data center industry, however, denies that it causes retail electric prices to rise.
Advocates for lower electricity prices in Pennsylvania are pressuring state lawmakers to enact policies aimed at curbing soaring consumer costs, which they partly attribute to the rapidly expanding data center industry. A report by Synapse Energy Economics, presented by groups including the Natural Resources Defense Council and the Pennsylvania Utility Law Project, suggests that consumers could save an average of over $840 annually by 2030 if policies are implemented to require large-load users like data centers to provide their own power and if utility profit margins are reduced. State Rep. Elizabeth Fiedler, chair of the House Energy Committee, emphasized the urgency, noting a 14% rise in residential electricity rates in the past year.
According to Jackson Morris, an analyst with the Natural Resources Defense Council, the projected power demand from data centers in Pennsylvania could be equivalent to adding two-and-a-half times New York City's current electricity usage to the PPL service territory in eastern and central Pennsylvania within the next decade. Rep. Fiedler is co-sponsoring HB2224, the Return on Equity bill, which aims to ease consumer costs by lowering the profit margins of state-regulated utilities, with a June 30 deadline for finalizing the state budget approaching.
In response, Dan Diorio, Vice President of State Policy for the Data Center Coalition, argued that studies consistently show data centers do not increase energy prices and can even help lower costs for residential customers by absorbing fixed grid expenses. Meanwhile, PJM Interconnection, the regional grid operator, acknowledged delays in connecting new energy sources but stated that many are due to external factors like state permitting. PJM recently secured approval from the Federal Energy Regulatory Commission for an expedited interconnection track for large state-sponsored generation projects.
Pennsylvania Governor Josh Shapiro has already introduced standards requiring developers utilizing the state's "Fast Track" permitting program to provide their own power, addressing community concerns and ensuring data centers offer tangible benefits. The article highlights ongoing advocacy and legislative efforts to manage the energy demands of the data center industry while protecting consumer interests in Pennsylvania.