Pa. House committee advances bills targeting data centers, electricity costs

The measures would regulate data center development and require developers to cover some infrastructure costs.

• Haley O'Brien/WITF
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  Haley O'Brien joined WITF in 2026. A native of Scranton, she enjoys exploring Pennsylvania's diverse communities. Haley previously worked at NPR/PBS stations in Northeast Pennsylvania and the Lehigh Valley, and has won awards for video storytelling and beat reporting.

As electricity rates rise and Pennsylvania’s projected energy demand continues to grow, the state House Energy Committee advanced several measures Wednesday aimed at regulating data center development and controlling utility costs.  

The committee first advanced HB2755, which would require electric distribution companies to participate in a regional transmission organization (RTO). The bill also would remove an incentive that supporters say has contributed to higher costs for consumers.  

Rep. Chris Pielli (D-156) proposed the bill. He said a study is being done to determine how much eliminating the incentive could save Pennsylvania ratepayers. Similar policies have been enacted in neighboring states.   

“Removing the profit bonus will save the people of New Jersey approximately $20 million a year,” he said. “This bill won’t alone fix the issue, but I do think removing this unnecessary bonus is a relatively easy way to make a difference.” 

Rep. Dallas Kephart (R-73) voted against the bill citing an ongoing study approved in June that would look at the state’s relationship with the grid operator, PJM. 

“Maybe we should pause to see what that actually says,” he said. “I agree that we need to get the electricity rates down. There’s a lot of factors that go into that.” 

Rep. Martin Causer (R-67), Republican Chair, voted for the bill, but said he had concerns.  

“It’s interesting to me that the governor and others have been blaming our energy issues on PJM for quite some time, including threatening to remove us from PJM,” he said. “And it’s ironic now that we’re considering a bill that mandates participation in PJM, so I have some concerns.” 

Rep. Elizabeth Fiedler (D-184), Majority Chair, said the results of the study will not be revealed until March 2027. 

“That means all of our constituents would live through this next winter with bills expected to be through the roof,” she said. “People back home are counting on us to act now to lower their bills.”  

The legislation was passed 22-3. 

The committee also unanimously passed HB2775, a “bring your own energy” bill for data centers. Developers would need to apply for electricity services and pay associated fees before seeking zoning approval.  

“This is a simple bill designed to separate the real from the fake,” said prime sponsor Rep. Kyle Donahue (D-113). “By weeding out the purely speculative projects, this bill helps reduce the burden that many municipal officials are feeling.” 

HB2828, also focused on data centers, passed unanimously. The bill introduced by Fiedler would ensure developers pay infrastructure costs.  

“This bill says that if we have an emergency and there are black outs and brown outs, it is the data centers that need to cut back first,” Fiedler said. “It will mandate that when data centers are built and utilities respond by upgrading infrastructure, that the cost of the infrastructure is paid for by the data center, not by the residents.” 

The committee also passed resolutions to study data center decommissioning and waste heat recovery.