Shapiro Asks Utility Regulators to Make Data Centers Pay for Their Own Power Costs

Pennsylvania Gov. Josh Shapiro on Thursday asked the state Public Utility Commission to let him join a case that seeks to make large data centers, not other PPL Electric Utilities customers, pay for the grid costs their demand creates.

“Pennsylvanians should not be left paying higher electric bills because of data center developers,” Shapiro said in a statement.

The consumer advocate is asking the commission to order PPL to create a separate rate and service class for large data centers. Data centers in that class would pay for the transmission upgrades they require and take interruptible service, meaning their power could be cut during grid emergencies before other customers lose theirs. The complaint also asks that data centers cover their share of costs from regional grid operator PJM Interconnection’s backup programs to secure enough power supply.

PPL already has a rate class for large users. The commission approved it in June as part of a settlement of PPL’s rate case. Under it, data centers and other new large customers must make 10-year commitments, and starting in 2027 they pay $11 million a year toward low-income assistance.

The consumer advocate says that class, known as Rate LP-6, does not adequately protect existing customers from the costs and reliability risks of data centers joining PPL’s system. According to the complaint, the settlement allowed the parties to reopen the rate once the commission issued a final model tariff for large customers, which it has since done.

Shapiro’s petition says that, based on a preliminary review, his administration agrees PPL’s current rules fail to account for the growing number of data centers connecting to its system. It says the administration is still developing its positions in the case.

The petition gives two grounds for intervening. One is the public interest. The other is that state agencies are PPL customers whose interests no other party in the case represents. If the commission grants the petition, Shapiro would have full party status, which would let his administration present evidence and make legal arguments.

The governor’s office said it is the first time in at least 15 years that a governor has intervened in a commission proceeding.

The filing follows an executive order Shapiro signed Aug. 18. It directs his special counsel for energy affordability, Mark Szybist, to work with the commission to keep data centers from shifting costs to other customers. Szybist signed the petition.

The complaint gave PPL 20 days to file a written response.

PPL Electric said in an emailed statement to The Epoch Times on Friday that it is committed to making sure large-load customers pay the costs associated with their projects.

The utility said it pushed for and won approval of Pennsylvania’s only commission-approved large-load tariff. It said it has also filed a separate proposal, the Consumer Protection Transmission Rider, to keep other customers from bearing the costs of broader system upgrades.

“We welcome the governor’s recognition of these important customer protections and look forward to continuing this work through the Pennsylvania Public Utility Commission proceeding,” the company said.

Shapiro faces Republican state Treasurer Stacy Garrity in the Nov. 3 election.

(L-R) President of Mack Trucks Stephen Roy, U.S. Sen. David McCormick (R-Pa.) and Republican gubernatorial candidate, Pennsylvania State Treasurer Stacy Garrity, applaud as President Donald Trump delivers remarks at the Mack Trucks Lehigh Valley Operations facility in Macungie, Pa., on June 23, 2026. Andrew Harnik/Getty Images

“Pennsylvanians know CYA when they see it,” Matt Beynon, a spokesman for Garrity’s campaign, said in a statement to The Epoch Times. CYA is an acronym for “cover your [expletive].”

Beynon said Shapiro opened the door to data center development in communities across the state. He said that development has led to higher electric rates, concerns about water, and fears about building in residential areas and on farmland.

He also said Shapiro has received nearly $6 million in campaign contributions from what he described as out-of-state data center interests. Shapiro’s campaign did not respond by publication time to a request for comment on Beynon’s statement.

“Josh Shapiro sold Pennsylvania out!” Beynon said.