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States Move to Rein In Data Center Costs as Pennsylvania Advances Tariff and North Carolina Files Bill

Policymakers are pushing developers to carry more of the grid and water burden to protect household bills as large power loads surge.

Overview

  • Pennsylvania’s Public Utility Commission advanced a nonbinding model tariff for large-load customers such as data centers that sets a 50 megawatt threshold, adds exit fees for canceled projects, and shifts more interconnection costs to developers.
  • The guidance says developers may build needed upgrades themselves and calls for payments into universal service programs that help low-income customers, with utilities recovering new transmission and distribution costs tied to the data center.
  • North Carolina lawmakers introduced the Ratepayer and Resource Protection Act to require cost-based rates, developer payment for grid upgrades, at least 25% on-site clean power, and tighter water-use rules for very large facilities.
  • In Maine, lawmakers sustained Gov. Janet Mills’ veto of a moratorium, allowing the Jay data center to proceed as she forms an advisory council to limit bill increases and environmental impacts.
  • Regulators and analysts link rapid data center growth to higher capacity costs and rising bills in the PJM region, and research highlights heavy water use and limited long-term jobs, driving states to adopt targeted tariffs, electric service agreements, and on-site resource requirements.