Rep. Craig Williams introduced the Pennsylvania Ratepayer Protection Act on Apr. 14, aiming to address rising electricity prices and prepare for growing energy demand in the state.
The proposed legislation comes as families and small businesses face higher electricity costs due to increased demand and long-term power agreements by large technology companies. The act seeks to ensure that these companies pay for their own infrastructure needs rather than passing costs onto ratepayers.
“Pennsylvania produces enormous amounts of electricity, but our residents are competing with hyper-scale data companies for that power,” Williams said. “House Bill 2372 protects ratepayers by requiring those companies to bear the full cost of the infrastructure and generation they require. That will provide immediate relief to Pennsylvania ratepayers.”
Under House Bill 2372, hyperscale data centers would be required to cover all expenses related to connecting with the electric grid and build their own baseload generation within Pennsylvania. This measure is intended to prevent new industrial demand from drawing on existing supply meant for homes and small businesses.
The bill also expands utilities’ ability to enter into long-term power purchase agreements with local generators, subject to approval by the Pennsylvania Public Utility Commission based on public interest and least-cost standards. These agreements are designed so that ratepayers can secure future supply at stable prices instead of competing in a tightening market.
“Pennsylvania sits on the doorstep of producing the electricity our region needs, yet our residents are paying higher prices because we are not building enough supply,” Williams said. “If large data centers want that power, they should build it and pay for it. This bill puts ratepayers first and gets us back to doing what Pennsylvania does best, producing energy.”
House Bill 2372 has been referred to the House Energy Committee for further consideration.
