PUC Takes a Step Toward Data Center Energy Accountability Policy Recommendations Address Large Energy Use from Data Centers

The Pennsylvania Public Utilities Commission (PUC) issued a first-of-its-kind set of policy recommendations to address the high costs and the risks that come from large energy users, such as data centers. The policy guidelines, called a “large load model tariff”, represent a meaningful but incomplete step in protecting communities and small businesses from higher energy bills across Pennsylvania. The guidelines recommend that data centers pay the full costs of energy infrastructure and updates, costs that are passed onto communities. Additionally, the policies call for transparency from data centers. However, the guidance doesn’t recommend adequate protection from blackouts or require data centers to build new clean energy sources like solar to strengthen the energy grid. While the tariff signals the acknowledgment to hold data centers accountable, it is not a binding policy and only serves as guidance that utilities may resist or ignore. This means Pennsylvania needs legislation to truly hold data centers accountable. 

Vote Solar’s Mid-Atlantic Regulatory Director, Kartik Amarnath, issued the following statement: 

“Holding data centers accountable for the energy they use and the costs they create is the first step in protecting families and small businesses across Pennsylvania from higher energy bills. While we are glad the PUC took critical first steps in holding data centers accountable, binding policy is the only way to make them actually follow through with any actionable changes.

“It is important that we not only ensure data centers pay for the grid infrastructure and the energy they require, but that they do not contribute to energy shortfalls, rising blackouts, and pollution through required demand flexibility and innovative solutions to protect communities from higher bills and even more pollution, such as bringing new clean energy like solar-plus-storage. In a time of rising energy bills and an even more strained energy grid, we need decision makers to step in and create a cleaner, more affordable energy future for all.”