Pennsylvania Activists Urge Lawmakers to Help Curb Soaring Electric Bills
Advocates in Pennsylvania are urging state lawmakers to implement policies to curb soaring electricity bills, proposing that large-load users like data centers supply their own power and that utility profits be reduced. The data center industry, however, denies responsibility for rising costs, while the grid operator PJM Interconnection acknowledges challenges in meeting demand driven by data center growth.
Advocates, including State Rep. Elizabeth Fiedler, urged Pennsylvania lawmakers to implement policies aimed at reducing soaring electricity costs for consumers, citing a report suggesting over $840 in annual savings by 2030. They propose measures like requiring large-load users, such as data centers, to self-supply power, reducing utility profit margins, and accelerating clean energy project interconnection.
Rep. Fiedler, chair of the House Energy Committee and representing part of South Philadelphia, highlighted the urgency of reforms as residential electricity rates have jumped nearly 14 percent in the past year. She sponsored HB2224 to lower utility profit margins, a move supported by Patrick Cicero of the Pennsylvania Utility Law Project, who argued that utility bills often include significant shareholder profits.
The advocates, including Jackson Morris of the Natural Resources Defense Council, contend that the rapid growth of the data center industry in Pennsylvania, with over 50 planned facilities, is a major driver of increased demand exceeding supply, putting strain on the grid, particularly for the PPL service territory in eastern and central Pennsylvania. They call for a "different approach" beyond basic market forces.
Conversely, Dan Diorio, Vice President of state policy for the Data Center Coalition, refuted these claims, stating that studies consistently show data centers do not raise energy prices and, in fact, can help reduce costs for residential customers by absorbing fixed grid costs. PJM Interconnection spokesman Jeff Shields acknowledged delays in bringing new generation online, partly due to state permitting, but noted PJM is actively working with governments on solutions, including an expedited interconnection track for large state-sponsored projects and plans for data centers to use their own generation or be curtailed during peak demand. Governor Josh Shapiro supports requiring data centers seeking "Fast Track" permits to provide their own power, emphasizing protection for communities.