HARRISBURG — State Rep. Elizabeth Fiedler and a coalition of advocates urged state lawmakers to reduce electricity prices by curbing utility profits and reforming data center power policies. A Synapse Energy Economics report projected that Pennsylvania consumers could save an average of more than $840 annually on electricity by 2030 if these policy changes are enacted.
The advocacy coalition, which includes the Natural Resources Defense Council, Pennsylvania Utility Law Project, and Evergreen Collaborative, stated that its goals can be achieved by requiring large-load users to supply their own power, reducing utility profits, and accelerating clean-energy project interconnections. HB2224, a bill co-sponsored by Fiedler, is designed to reduce the profit margins of state-regulated utilities.
Federal data shows that residential electricity rates in Pennsylvania increased by nearly 14 percent over the past year, and consumer electricity costs have increased by more than 50 percent compared to 2020. The Synapse Energy Economics report projects that policy reforms could reduce average household electricity costs by $197 in 2027 and generate $2.4 billion in statewide savings by 2030. Fiedler said, "This report shows us the tremendous amounts of money that people can keep in their pockets."
Advocates also stated that the data center industry plans to build over 50 computer complexes in Pennsylvania, and this has increased power demand to levels that exceed new supply. Jackson Morris, an analyst with the Natural Resources Defense Council, said, "The rapid rise in data centers and expected future growth are unique, unprecedented and uncertain, and will require a different approach than simply asserting that basic market forces of supply and demand will take care of it." Morris stated that projected data center power demand would equal two-and-a-half times the current electricity usage of New York City within the PJM service territory over the next decade.
Dan Diorio, vice president of state policy for the Data Center Coalition, denied that the data center industry causes retail electricity prices to increase. Diorio stated, "Studies have consistently found that data centers do not raise energy prices, and that data centers pay for all the power they use, just like any other customer. In fact, research shows that large-load users like data centers can actually keep costs down for residential customers by absorbing more of the grid's fixed costs." A recent study supporting this claim was funded by the Data Center Coalition.
PJM Interconnection has 50 gigawatts of generation that cleared its interconnection process but faces external delays, including state permitting. The Federal Energy Regulatory Commission approved a PJM proposal for an expedited interconnection track for large state-sponsored generation projects. Additionally, Pennsylvania developers must provide their own power generation to qualify for the state's Fast Track permitting program, a requirement mandated by Governor Josh Shapiro. Shapiro stated that a price cap he negotiated with PJM saved regional consumers billions of dollars and his new data-center standards are designed to protect communities.