Mar. 06, 2026
HARRISBURG – Rep. Craig Williams (R-Delaware/Chester) introduced the Pennsylvania Ratepayer Protection Act. The legislation will lower electricity costs for families and small businesses while preparing the Commonwealth for the rapidly growing energy demand deriving from data center buildout and electrification across the economy.
Pennsylvania residents are already seeing the effects of escalating demand for electricity as large technology companies secure enormous amounts of existing power through long-term contracts with generators. When those agreements lock up available supply, households and small businesses are left competing for the dwindling supply of electricity, which drives prices higher.
“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 proposal aligns with the national focus on electricity supply and consumer protection. Earlier this year, the president convened a meeting with the governors of the PJM electricity region, including Pennsylvania’s Governor, to address rising electricity prices and the surge in demand expected from artificial intelligence and data center development. That meeting produced a “Statement of Principles Regarding PJM” focused on stabilizing electricity markets and ensuring adequate power supply for the region. That statement was signed by all 13 governors, including Gov. Josh Shapiro. In fact, the Governor obligated the Commonwealth in the last principle to “use all available authorities” to ensure that the Public Utility Commission (PUC) undertakes rulemaking to effectuate the total agreement.
The PUC may not act without enabling legislation, which is the purpose of the Pennsylvania Ratepayer Protection Act, consistent with the commitments made by the Governor in the PJM agreement.
“Much of our electricity policy is governed by state law,” said Williams. “If we want these protections to work for Pennsylvania families, we must codify them in our utility laws.”
This week, the administration reinforced those priorities through a Ratepayer Protection Pledge with several major technology companies (for example, META, Google and X-AI). The pledge calls for hyper-scale data centers to bring their own electricity generation and pay the cost of building the infrastructure needed to connect to the grid, rather than shifting those costs onto ratepayers.
The legislation includes three core components:
• Codifying the Ratepayer Protection Pledge, so large data centers pay the full cost of the infrastructure required to connect to the electric grid.
• Requiring hyper-scale data centers to Bring Their Own Generation by constructing or supporting new electricity generation rather than drawing power from the existing supply serving homes and small businesses.
• Establishing Power Pricing Parity by requiring utilities to enter long-term power purchase agreements on behalf of ratepayers, so Pennsylvania families and small businesses can compete for the Commonwealth’s electricity supply before it is contracted by hyper-scale data companies.
This approach allows Pennsylvania to support economic growth while protecting consumers.
“Pennsylvania has the resources to power the next generation of economic development,” said Williams. “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.”
Representative Craig Williams
160th Legislative District
Pennsylvania House of Representatives
Media Contact: Will Patterson
267-688-2590
wpatterson@pahousegop.com