In an attempt to protect existing customers from higher costs due to the expansion of the electric grid to serve new large load electric customers, including hyperscale data centers, the Pennsylvania Public Utility Commission voted last week to issue a Tentative Order proposing a statewide model tariff to guide how large electric customers connect to the grid and share costs responsibly.  

“Pennsylvania has a real opportunity here – if we get it right,” noted PUC Chairman Steve DeFrank. “Today’s tentative order is about welcoming investment and jobs while making sure existing customers aren’t stuck with the bill. We’re proposing clear, transparent rules that help interconnect large loads quickly and responsibly – protecting reliability, preventing cost-shifts, and avoiding stranded costs.”  

The tentative order, which was adopted by a 3-2 vote, reflects input gathered by the commission through a hearing in April 2025 and includes input from utilities, industry, consumer advocates, and the public. The tentative defines encourages large-load customers to contribute toward programs to help low-income customers; encourages faster, more transparent interconnections; and incentivizes flexibility by providing rate options for large-load customers willing to accept interruptible or flexible service during peak demand.  

Township officials should note that the proposed tariffs would only address distribution costs and would not address electric generation costs that will continue to increase based on rising demand. The PUC does not have regulatory oversight of electric generation, as generation is not regulated in Pennsylvania. 

Click here for the press release and here for the tentative order. Once the Tentative Order is published in the Pennsylvania Bulletin, a 30-day public comment period will begin. PSATS will review the order and comment as appropriate based on existing policy.