Thomas R. Henchey, Business Manager
Around the Local
While data centers are driving significant electricity demand growth, states have existing processes to manage large developments and many proposed projects are unlikely to be built. A new report shows data centers account for about 9% of global electricity demand increase through 2030, with factories leading at 36.5%.
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Extreme cold temperatures challenge Pennsylvania's power grid as natural gas plants face mechanical failures and fuel delivery constraints during peak demand. Experts suggest improving winter resilience through advanced energy resources like battery storage, demand response, and virtual power plants as alternatives to gas-fired generation.
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PJM Interconnection warns that the region will fail to meet required power reserves starting June 2027 due to slow replacement of retiring power plants and surging demand from electrification and data centers, leaving the 13-state grid more vulnerable to outages for the first time in its history.
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Pennsylvania Governor Josh Shapiro announced plans to limit utility company profits and eliminate junk fees, creating a new watchdog to scrutinize company books and seeking legislation to cap returns on infrastructure investments as electricity rates rise due to supply-demand gaps and data center growth.
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Governor Josh Shapiro's Lightning Plan to expand energy generation and attract data centers through tax incentives and utility reforms draws mixed responses, with supporters praising grid modernization efforts while critics warn that renewable mandates and rate caps could increase costs and reduce reliability.
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