GOP Pa. House bill aims to address data-center-driven rate hikes
Pennsylvania House Republicans are advocating for the Pennsylvania Electricity Ratepayer Protection Act to address rising electricity rates attributed to data centers. The proposed legislation aims to require hyperscale data centers to generate their own power and cover their infrastructure costs, preventing these expenses from burdening state ratepayers. The bill is currently under consideration in the House Energy Committee.
Pennsylvania House Republicans are pushing for the advancement of the Pennsylvania Electricity Ratepayer Protection Act to combat rising electricity rates, which became effective June 1 and are partly attributed to the growing demand from data centers. State Rep. Craig Williams, representing Delaware and Chester counties, and House Republican Leader Jesse Topper held a press conference to advocate for the bill.
The legislation seeks to reverse conditions leading to increased electricity costs, prevent data center infrastructure expenses from being passed to ratepayers, and boost electric generation across Pennsylvania. Williams emphasized that families and small businesses are facing higher electricity bills because the supply cannot keep up with demand, primarily from data centers across the PJM system. The proposed act aims to codify principles like "Bring Your Own Generation" and "Pay Your Own Way," previously supported by Governor Josh Shapiro and President Donald J. Trump, into Pennsylvania law.
The act includes three main components: requiring hyperscale data centers to construct their own electric generation, mandating that data centers pay the full cost of electric infrastructure and grid connections, and instituting Power Pricing Parity where utilities secure long-term power purchase agreements for ratepayers. Williams stated that the bill is the only pending legislation that directly addresses ratepayer costs by changing the market calculation. The Pennsylvania Electricity Ratepayer Protection Act is currently awaiting consideration in the House Energy Committee.