Pennsylvania’s consumer advocate is challenging PPL Electric Utilities’ protections for electricity customers as the utility prepares for data center growth, alleging that existing rules could leave ratepayers responsible for substantial infrastructure costs.
An amended complaint filed with the Pennsylvania Public Utility Commission (PUC) cites approximately $178.4 million in proposed network upgrades associated with a hyperscale data center campus. The Pennsylvania Office of Consumer Advocate (OCA) alleges that $21.5 million would be assigned to the data center customer, while $156.9 million would be allocated to other ratepayers.
The proposed allocation is an allegation in the complaint, not a finding by the commission.
For data center operators, the proceeding could affect the terms under which utilities provide power to large computing facilities, including infrastructure charges and requirements for managing electricity demand.
The complaint challenges protections in PPL's existing large-load tariff, Rate LP-6. It also raises questions about the utility's load forecasts and the reliability risks associated with connecting large new electricity users.
Neil Osnato, founder of Persistence Analytics Group, said the complaint highlights questions about both infrastructure cost allocation and the evidence supporting projected demand.
Complaint questions PPL's load forecasts
The complaint cites PPL's approximately 31.8-gigawatt advanced-stage data center pipeline through 2034, including projects with signed agreements and payment obligations.
It also identifies a change in PPL's 2030 large-load forecast adjustment, from 13,343 megawatts in an earlier annual submission to 12,764 MW in a September 2026 submission.
Osnato said signed agreements provide evidence of customer commitment but do not establish that all projected demand will materialize on schedule or at the expected level.
He said utilities should document changes in project readiness and other assumptions that affect forecasts before committing to major infrastructure investments.
Ratepayer protections remain a concern
The OCA alleges that PPL's existing tariff does not adequately protect customers from costs associated with data center development. The commission will determine whether the tariff complies with Pennsylvania requirements and whether additional protections are warranted.
Financial provisions such as minimum billing obligations, security requirements and construction contributions can help determine who pays when projects are delayed, reduced in size or abandoned.
Osnato said those provisions do not, by themselves, establish whether the demand forecasts supporting infrastructure investments were sufficiently verified.
The complaint also seeks stronger operating protections, including mandatory interruptible service, according to Osnato's review.
Interruptible service can require large customers to reduce electricity consumption under specified conditions. Its effectiveness depends on the terms of the agreement and the customer's ability to deliver the required reduction when the grid is under stress.
Interstate market costs add pressure
Pennsylvania's efforts to protect ratepayers also face pressures beyond individual utility tariffs.
The Pennsylvania PUC has conducted proceedings addressing data center rates, but gaps remain in protections against costs and risks associated with data center development, said Ari Peskoe, director of the Electricity Law Initiative at Harvard Law School.
Peskoe also pointed to interstate electricity market costs that are raising prices for Pennsylvania consumers.
State regulators can address utility rates and cost allocation, but regional wholesale electricity markets also influence the cost of securing electricity supply and maintaining grid reliability.
Peskoe said regulators will need to continue examining data center costs despite the proceedings already conducted in Pennsylvania. He had not reviewed the amended complaint in detail and was commenting on the broader regulatory issues.
The PUC has yet to resolve the OCA's allegations.
Shane Snider is a senior news writer at TechTarget, covering AI infrastructure, hyperscale data centers, cloud platforms, and the power and energy systems driving modern compute expansion. You can reach Shane at [email protected] or on LinkedIn.
