(WHTM) — The need for energy has never been higher in Pennsylvania, and there seems to be one culprit: data centers.
In the past 20-30 years, the growth for energy demand has been incremental, said Stephen DeFrank, chair of the Pennsylvania Public Utility Commission, which regulates utility providers in the state. The low demand led market signals to close generators, but now they can’t open fast enough.
What’s inside Pennsylvania’s data centers?
Simple supply and demand, DeFrank said, means energy prices are spiking. But he warned Pennsylvanians shouldn’t be quick to shun new developments in the state.
“These are multi-billion dollar facilities,” DeFrank said. “They are going to go somewhere. If they don’t go in Pennsylvania, they’re probably going to go in a neighboring state. So, that excess power that we have here in Pennsylvania, we’re going to be shipping it out of the state and powering that data center and helping another local tax base.”
“I think we should bring the local tax base here,” DeFrank added.
But what can he do to soothe the shock of rising electric bills?
Pennsylvania is what’s called a “restructure state,” meaning it has a competitive electric market where homeowners can shop around for rates. PJM Interconnection operates the state’s grid and gives market signals for whether generation should open or close, not the PUC.
Gov. Josh Shapiro (D) has expressed frustration with PJM over rising electric bills, going as far as to threaten to “go in a different direction” and leave PJM.
That’s not likely something the governor can do on his own through an executive order, DeFrank said. However, several state legislators have drafted proposals for such a move.
There are actions the PUC can take in its role as a utility regulator.
“[The] state utility commission is the one player in this whole paradigm that stands up for consumers,” DeFrank said.
Watch This Week in Pennsylvania to see how the PUC does that, and what it’s doing to address the approaching energy challenges.
Plus, analysts J.J. Abbott and Christopher Nicholas discuss whether Sen. John Fetterman is still a Democrat. It’s a tough question even the senator struggles to answer.
Every week, This Week in Pennsylvania gives a comprehensive look at the week’s biggest news events in Pennsylvania, provided by the abc27 News team, along with the latest updates on local stories.
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