Pennsylvania House Bill 1834 would single out data centers as large-load electricity customers

A version of the following public comment was submitted to the Pennsylvania House Committee on Energy on February 2, 2026.

We offer this testimony in support of the amendments under consideration at the February 2, 2026, Committee hearing. In particular, the proposed amendment, which makes HB 1834 applicable to all large-load electricity customers rather than only data centers, is an important and positive change.

Electric utilities in Pennsylvania and other states are preparing for the rapid growth of data centers. The computing power driving the artificial intelligence (AI) revolution requires electricity, meaning that many new large customers are expected to come online in Pennsylvania soon. Further complicating the matter are the wildly different predictions about data centers’ power consumption coming from a wide variety of sources. Some predict near-disaster scenarios where the power needs of data centers will swamp grid capacity, resulting in higher electricity prices or even shortages for ordinary consumers. Others see data centers as bringing new jobs to the state and having little or no impact on the reliability and electricity rates of smaller power customers. Still others predict that an AI bubble will bust and warn of overconstruction and overinvestment. How can public utilities, which must begin planning for the data center boom now, best proceed?

Under such uncertainty, the best approach is to focus on sound investments and policies for all large-load users (including industrial and large commercial facilities and data centers), rather than on pricing or regulations that discriminate based on how the power will be used. Recommendations from Pennsylvania Public Utility Commission (PUC) Chairman Stephen DeFrank and others to shift HB 1834’s focus from data centers to all large-load users would help position Pennsylvania as a leader among states in the effort to modernize both electricity infrastructure and regulations.

There is no reason to single out data centers from other large-load users (like factories or large commercial facilities) for either more or less preferential treatment. Given the uncertainty around data center projections, policies that single them out may quickly become outdated and create bureaucratic red tape, hindering future innovation and development. Policies should instead aim to connect new large users to the grid efficiently, reliably, and protect smaller customers from volatile or rising rates. This process is well underway in Pennsylvania, with the PUC releasing its Tentative Order on the Model Tariff for Large-Load Customers in December, aimed at protecting small electricity customers from price increases or fluctuations resulting from adding larger users to the grid.

We are concerned about the requirement in HB 1834 that 25 percent of the energy used by large-load users come from renewable sources. Research shows that these mandates, while well-intentioned, drive up energy costs for customers. This is in notable contrast to market-driven decisions about renewables, which lower overall costs. Policy questions like this illustrate why the amendment to extend HB 1834’s scope to all large-load users, rather than just data centers, is important. The renewable energy requirement should be evaluated on whether it is a robust, forward-looking policy for a growing number of large users on Pennsylvania’s grid, not just a reaction to uncertain projections about a hot-button issue.

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