The Pennsylvania Public Utility Commission (PUC) released its final order for a model tariff for large-load customers — including rapidly expanding data centers. This action builds on the PUC’s work to address the rapid expansion of large-load customers and the potential impacts on infrastructure planning, system capacity, and customer costs. The order follows a year of hearings, stakeholder engagement, public comment, and technical review.  

“This is one of the most important infrastructure and consumer protection issues facing utility regulators across the country,” said PUC Chairman Steve DeFrank. “Pennsylvania is confronting a level of electric load growth that has not been seen in generations, driven largely by data centers and advanced manufacturing. Rather than waiting for these challenges to overwhelm the system, this Commission chose to lead. This Final Order establishes a thoughtful framework that supports economic development, strengthens transparency and planning, and protects existing ratepayers from bearing the financial risks associated with unprecedented new demand.” 

The model tariff is intended to guide Pennsylvania’s electric distribution companies as they evaluate and serve large-load customers whose electric demand may significantly impact infrastructure planning, system reliability, and customer costs.  

The model tariff establishes guidance in several major areas: 

• Large Load Thresholds – Applies to large-load customers exceeding 50 megawatts individually or 100 megawatts in aggregate. 

• Cost Responsibility Protections – Helps ensure that large-load customers are responsible for infrastructure and interconnection costs associated with serving their projects. 

• Collateral and Financial Security Requirements – Requires financial protections to mitigate stranded costs from projects that are delayed, abandoned, or fail to meet projected demand. 

• Interconnection Study Timelines – Establishes expectations for utilities to complete interconnection studies within six months, to assist with grid planning. 

• Contract Terms and Exit Provisions – Provides guidance for load ramping schedules, minimum contract terms, and customer exit provisions to support long-term cost recovery and system stability. 

• Public Interconnection Queue Transparency – Requires utilities to maintain public-facing information regarding large-load interconnection requests and study status. 

• Customer Self-Construction Options – Allows large-load customers to self-construct certain infrastructure upgrades, subject to utility, safety, reliability, and regulatory standards, with the goal of improving project flexibility while insulating ratepayers from unnecessary costs. 

To learn more, click here for the press release.