Rep. Craig Williams (R-Delaware/Chester) has introduced the Pennsylvania Ratepayer Protection Act, a legislative proposal aimed at reducing electricity costs for households and small businesses in the state. The bill is designed to address rising energy demand driven by data center expansion and broader electrification.
Williams highlighted that Pennsylvania residents are facing higher electricity prices as large technology companies secure significant portions of existing power through long-term contracts with generators. This practice reduces available supply for other consumers, leading to increased competition and higher rates.
“Pennsylvania produces enormous amounts of electricity, but our residents are increasingly competing with massive Big Tech buyers for that power,” said Williams. “This legislation puts ratepayers on equal footing and protects them from bearing the cost of building new electricity generation and infrastructure required by hyper-scale data centers.”
The initiative follows national discussions about energy supply and consumer protection. Earlier this year, the president met with governors from states in the PJM electricity region—including Pennsylvania Governor Josh Shapiro—to discuss strategies for stabilizing electricity markets amid growing demand from artificial intelligence applications and data center development. The meeting resulted in a joint “Statement of Principles Regarding PJM” signed by all 13 regional governors, committing to actions such as using all available authorities to ensure that state utility commissions implement rules supporting these principles.
Williams explained that enabling legislation is necessary for the Public Utility Commission (PUC) to act on these commitments: “Much of our electricity policy is governed by state law,” he said. “If we want these protections to work for Pennsylvania families, we must codify them in our utility laws.”
Recently, the administration reinforced its priorities through a Ratepayer Protection Pledge with major technology firms including META, Google, and X-AI. The pledge requires hyper-scale data centers to provide their own power generation and pay for infrastructure needed to connect to the grid rather than passing those costs onto ratepayers.
The proposed legislation includes three main provisions:
– Codifying the Ratepayer Protection Pledge so large data centers cover all costs associated with connecting to the electric grid.
– Requiring hyper-scale data centers to construct or support new electricity generation instead of drawing from existing supplies meant for homes and small businesses.
– Establishing Power Pricing Parity by mandating utilities enter long-term power purchase agreements on behalf of ratepayers before such deals are made with large technology companies.
Williams stated: “Pennsylvania has the resources to power the next generation of economic development. By requiring companies to pay their own costs, build their own generation and allowing ratepayers to compete for long-term power supply, we can lower electricity prices while keeping Pennsylvania open for business.”
