House Republicans at a press conference Wednesday pushed for advancement of the Pennsylvania Electricity Ratepayer Protection Act.
The legislation will reverse the conditions for rising electricity costs, prevent data center infrastructure costs from reaching ratepayers and increase electricity generation across Pennsylvania.
The Pennsylvania Public Utility Commission (PUC) just announced another round of substantial electricity price increases across the Commonwealth effective June 1. Increased power prices are now a recurring theme for one reason: the available electricity supply cannot keep up with the demand on the existing electricity supply. That demand comes mainly from data centers across the PJM system (not only in the Commonwealth). Because there is no existing policy requiring data centers to build their own power supply, those data companies and developers are competing with Pennsylvania ratepayers for the limited supply.
“Pennsylvania families and small businesses are paying more for electricity because demand has risen astronomically faster than available supply,” said Rep Craig Williams. “The Pennsylvania Electricity Ratepayer Protection Act addresses the root causes of that problem and protects ratepayers from costs associated with hyperscale data center development.”
The Pennsylvania Electricity Ratepayer Protection Act codifies certain commitments contained in the Statement of Principles Regarding PJM signed by Governor Josh Shapiro and the Governors of the PJM states, as well as the Ratepayer Protection Pledge signed by President Donald J. Trump and several hyperscale data companies. Both agreements recognize the principles of Bring Your Own Generation and Pay Your Own Way. These precepts were also included in the Governor’s budget address to the Pennsylvania General Assembly earlier this year. The Pennsylvania Electricity Ratepayer Protection Act carries those commitments into Pennsylvania law.
The Pennsylvania Electricity Ratepayer Protection Act contains three major components:
• Bring Your Own Generation – Requires hyperscale data centers to construct their own electricity generation in Pennsylvania rather than drawing power from existing generation assets in the public supply, thereby removing that competition with Pennsylvania ratepayers for power supply.
• Pay Your Own Way – Requires hyperscale data centers to pay the full cost of electric infrastructure and grid connections needed for their projects, rather than visiting those costs on Pennsylvania ratepayers. The Pennsylvania Public Utility Commission (PUC) recently endorsed the principle that large-load users should bear the costs of infrastructure required specifically for their projects.
• Power Pricing Parity – Requires Pennsylvania electric utilities to enter long-term power purchase agreements on behalf of ratepayers, thereby giving Pennsylvania ratepayers the competitive, economic benefits currently extended to large data companies.
“The Governor signed the Statement of Principles Regarding PJM. The President announced the Ratepayer Protection Pledge. Pennsylvania now needs legislation that carries those commitments into state law,” said Williams. “Ratepayers should not subsidize infrastructure buildout for multi-billion-dollar corporations. Nor should ratepayers be left paying grossly inflated energy costs as these same wealthy companies buy up our existing, limited electricity supply. The principles are simple and largely the same as expressed by the Governor: you will not build your wealth on the backs of our ratepayers.”
“The demand for Pennsylvania’s energy will not slow down any time soon,” said House Republican Leader Jesse Topper. “That energy will fuel the next wave of digital advancements across the world, but it can’t be at the expense Pennsylvanians. This plan is crucial to protect our ratepayers so they can benefit from our Commonwealth’s unique position in the energy landscape.”
“The Pennsylvania Electricity Ratepayer Protection Act is the only legislation pending which directly addresses ratepayer costs, and it does so in a way that changes the market calculation overnight,” said Williams. “As the only energy attorney in the General Assembly, I stand by ready to assist the Governor with a smart plan forward.”
The Pennsylvania Electricity Ratepayer Protection Act currently awaits consideration in the House Energy Committee.
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