Pennsylvania Wants Data Centers to Pay Their Own Way. There’s a Better Way to Do It.
“Increasingly, major industrial projects are choosing a different path: building independent power systems outside the traditional utility framework and bypassing the grid entirely.
That trend points toward a reform that would entice the industrial customers who would rather not connect to the broader grid: light-touch regulation for customers who build or contract for electricity service through new independent power networks.
Call it consumer-regulated electricity (CRE). The principle is straightforward: If large customers would rather create or join a new electricity network than plug into the existing one, they should be free to do so without being subject to rules designed for public utilities. It’s a simple legislative change that would implement Shapiro’s pay-your-own-way policy.
Data centers are only part of the story. Because CRE would respond to the need for “speed to power,” large customers of all types, including advanced manufacturing facilities, would see Pennsylvania as a growth opportunity. Many industrial developers now face years of delays due to interconnection studies, transmission upgrades, utility-planning processes, and regulatory approvals. In some regions, obtaining grid service can take four to six years—or longer. New electricity networks offer a faster path to electricity service than the legacy grid can accommodate.
Just as important, CRE would open a market-based system built on voluntary exchange, not political privilege. Under the traditional utility model, complex regulatory proceedings or political dealings often decide who pays for new infrastructure or who is lucky enough to get service. These are areas where regulated utilities thrive, and no consumer can be quite as savvy. Instead, CRE would rely on private contracts among willing parties.
Finally, Pennsylvania families would benefit because new industrial projects would no longer rely on regulated utility infrastructure that socializes costs and risks to grid reliability across millions of customers. If a data center succeeds, private investors benefit. If it fails, private investors bear the loss. Either way, ordinary ratepayers will remain protected, and Pennsylvania’s growth won’t come at anyone’s expense.”
