Data centers drive up electric costs around Central Pennsylvania

PPL Electric Utilities Corporation is looking to raise electric rates for residential households by 7% while data centers get a rate decrease.

Data centers, which are responsible for driving up electric bills across Central Pennsylvania, are about to see their electricity rates decrease as PPL Electric Utilities Corporation (PPL) gets ready to raise rates for residential and commercial uses, according to a memo released by Clean Power PA Coalition.

PPL, which serves 1.5 million customers across 29 counties in Northeastern and Central Pennsylvania, is asking the Pennsylvania Public Utility Commission (PUC) to approve a $356.3 million annual revenue increase that includes a 7% electric bill increase for residents and a 5.3% increase for commercial uses.

Corporations and businesses that consume large amounts of electricity for industrial uses, meanwhile, will only see a 2.58% rate increase, while facilities that use the most electricity will see a slight reduction in their rates. 

“This cost structure is fundamentally unfair. Data centers consume enormous amounts of electricity, driving up demand and requiring massive grid upgrades, yet residential customers are bearing the brunt of the costs,” the memo read. 

This latest rate increase by PPL comes on the heels of a 16% rate increase in June and another 3.7% rate increase that went into effect at the beginning of this month with data centers driving the funding need. 

According to the Union of Concerned Scientists, 16 data centers in 2024 imposed more than $491 million in costs to connect transmission lines, transformers, and other infrastructure to their properties. Those costs are then bundled together, filed at the Federal Energy Regulatory Commission (FERC) and then passed along to the states. 

PUC, which suspended and is investigating PPL’s rate increase, has until July 1, 2026 to issue its final decision and has scheduled public hearings on the matter in the coming weeks.

Here is a list of the following in-person hearings, which all start at 6:00 PM. 

• Monday, December 8 — Scranton University, Brennan Hall-Rose Room, 320 Madison Avenue, Scranton
• Tuesday, December 9 — Catasauqua Municipal Building, 90 Bridge Street, Catasauqua
• Wednesday, December 10 — Commonwealth Keystone Building, Hearing Room #1, 400 North Street, Harrisburg
• Thursday, December 11 — Manheim Township Public Library, Morgan Center, 595 Granite Run Drive, Lancaster