Pennsylvania HB 2372: An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, further providing for declaration of policy, for standards for restructuring of electric industry and for duties of electric distribution companies.

Bill Text

PRINTER'S NO. 3161
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2372
Session of
2026
INTRODUCED BY C. WILLIAMS, PICKETT, STAATS, GAYDOS, KUZMA, MOUL,
M. MACKENZIE, STEHR, D'ORSIE, SHAFFER, CUTLER, COOPER, RADER,
CIRESI, M. BROWN, EMRICK, SMITH, GLEIM, SCHEUREN, OLSOMMER,
MARCELL, B. MILLER AND WALSH, APRIL 9, 2026
REFERRED TO COMMITTEE ON ENERGY, APRIL 9, 2026
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, further providing for declaration of policy, for
standards for restructuring of electric industry and for
duties of electric distribution companies.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2802 of Title 66 of the Pennsylvania
Consolidated Statutes is amended by adding a paragraph to read:
§ 2802. Declaration of policy.
The General Assembly finds and declares as follows:
* * *
(22) Since continuing and ensuring the reliability of
electric services depends on adequate generation and
conscientious development and maintenance of transmission and
distribution systems, hyperscale data centers built in this
Commonwealth shall pay their own costs for energy and
connecting infrastructure, including bringing their own
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baseload generation onto the grid and building necessary
infrastructure to connect their generation and facilities to
the grid no matter how attenuated those infrastructure needs
may be from the actual site of the facility.
Section 2. Section 2804(1) introductory paragraph of Title
66 is amended and the paragraph is amended by adding a
subparagraph to read:
§ 2804. Standards for restructuring of electric industry.
The following interdependent standards shall govern the
commission's assessment and approval of each public utility's
restructuring plan, oversight of the transition process and
regulation of the restructured electric utility industry:
(1) The commission shall ensure the continuation of safe
and reliable electric service to all consumers in [the] this
Commonwealth, including:
* * *
(iii) That hyperscale data centers built in this
Commonwealth shall provide their own baseload generation
which shall consist of new generation build or
repurposing previously retired generation assets which
may be refitted to comply with existing law. The
following shall apply:
(A) Baseload generation shall be built in this
Commonwealth.
(B) Hyperscale data centers shall pay their own
costs for interconnecting with transmission and
distribution systems regardless of the proximity of
those costs to the data center and the generation
facility.
(C) The commission shall determine what
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constitutes a hyperscale data center in terms of
generation requirements.
* * *
Section 3. Section 2807(e)(3.2)(iii) of Title 66 is amended
and the section is amended by adding a subsection to read:
§ 2807. Duties of electric distribution companies.
* * *
(e) Obligation to serve.--A default service provider's
obligation to provide electric generation supply service
following the expiration of a generation rate cap specified
under section 2804(4) (relating to standards for restructuring
of electric industry) or a restructuring plan under section
2806(f) is revised as follows:
* * *
(3.2) The electric power procured pursuant to paragraph
(3.1) shall include a prudent mix of the following:
* * *
(iii) Long-term purchase contracts with Pennsylvania
electric generators, entered into as a result of an
auction, request for proposal or bilateral contract that
is free of undue influence, duress or favoritism, of more
than four and not more than 20 years. The default service
provider shall have sole discretion to determine the
source and fuel type. Long-term purchase contracts under
this subparagraph [may not constitute more than 25% of
the default service provider's projected default service
load unless the commission, after a hearing, determines
for good cause that a greater portion of load is
necessary to] are subject to a determination by the
commission, after a hearing, that the contracts are in
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the public interest and achieve least cost procurement.
This subparagraph shall not apply to contracts executed
under paragraph (5).
* * *
(f.1) Hyperscale data center integration.--
(1) Each electric distribution company shall cooperate
with the development and deployment of hyperscale data
centers to facilitate siting, infrastructure planning and
expedited interconnection, including:
(i) Facilitating the interconnection of customer-
owned or third-party-owned generation assets located on
or adjacent to the hyperscale data center site.
(ii) Incorporating projected hyperscale data center
loads into long-term infrastructure and capital
improveme