House Energy Committee votes out bills on data center regulations and fair rates for utility customers
Pennsylvania House Democratic Caucus October 1, 2026 | 4:17 PM
HARRISBURG, Oct. 1 – Continuing its efforts to mitigate the impact of data centers and rising energy costs, the PA House Energy Committee voted this week to advance several bills that would protect Pennsylvania households and small businesses.
The bills are:
- H.B. 2755: Would eliminate a ratepayer funded profit bonus for utilities.
- H.B. 2775: Would protect PA communities from speculative data center projects.
- H.B. 2828: Would require data centers to cover interconnection costs.
- H.R. 564: Would commission a study on data center and industrial heat reuse.
- H.R. 630: Would commission a study on community impacts of data center decommissioning.
The committee unanimously approved four bills aimed at protecting Pennsylvania communities from rate hikes and stranded costs associated with the prolific expansion of data center development across the state.
House Bill 2775, sponsored by state Rep. Kyle Donahue, D-Lackawanna, would require data center developers to verify they have submitted and covered the costs of an interconnection application with the local utility company as part of a zoning application. Requiring proof that the project is not speculative in nature would alleviate financial and operational burdens placed on resource-limited municipalities.
House Bill 2828, sponsored by state Rep. Elizabeth Fiedler, D-Phila., would ensure ratepayers are protected from rate hikes associated with data center projects by requiring them to fully cover the costs associated with grid interconnection.
House Resolution 564, sponsored by state Rep. Robert Freeman, D-Northampton, would direct the Joint State Government Commission to conduct a study on waste heat recovery in data centers and other industries.
House Resolution 630, sponsored by state Rep. Christina Sappey, D-Chester, would direct the Legislative Budget and Finance Committee to study the community impacts of data center decommissioning.
With at least 100 data centers projects proposed across Pennsylvania, the lack of regulations on the industry has led to concerns among communities about price increases, environmental harm, strain on the electric grid, and other community impacts.
Additionally, the committee approved H.B. 2755, sponsored by state Rep. Chris Pielli, D-Chester, which is a first step in eliminating a long-standing profit boosting incentive for utilities to participate in a regional transmission organization. Although Pennsylvania electric utility companies already participate in PJM on a voluntary basis, and have done so for decades, they still reap the benefits of this incentive, which creates a cost passed onto ratepayers.
Pielli’s measure passed by a bipartisan vote of 18-4.
Six other states, including three in the PJM region -- Ohio, Maryland and New Jersey -- have already taken steps to eliminate the stale incentive. Analysis by Synapse Economics demonstrated that New Jersey residents would save $20 million annually if the incentive was removed.
“I’m deeply concerned about what this coming winter will mean for families and seniors struggling to cope with rising energy bills. People will be forced to make impossible decisions: whether to put food on the table or keep the lights on, whether they can turn down their thermostat to afford the medication they need,” said Fiedler. “Our neighbors are in desperate need of relief, and I am encouraged to see bills that prioritize people over profit advance from committee with bipartisan support.”
All five bills now move to the full House chamber for further consideration.