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Pennsylvania House Republicans Roll Out Bill Which Would "Require" Utilities To Enter Long-Term Power Contracts
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The Pennsylvania House Republicans (state legislature) have rolled out a bill, HB 2372, which Republicans say, "requires Pennsylvania electric utilities to enter long-term power purchase agreements on behalf of ratepayers, thereby giving Pennsylvania ratepayers the competitive, economic benefits currently extended to large data companies".
The current printer's number version of the bill, however, is more nuanced
The current HB 2372 would only require long-term contracts as part of a "prudent mix" of default supply products, as is generally the case currently, and would not mandate long-term contracts outside of a prudent mix finding
However, HB 2372 does make two key changes to the prudent mix language
First, HB 2372 modifies the long-term contract language to provide that the prudent mix shall include, "Long-term purchase contracts with Pennsylvania
electric generators," with the underlined text representing a new condition applicable to the long-term contracts. Current statute does not require that the long-term contracts be with Pennsylvania
electric generators
Second, HB 2372 removes the current soft cap which provides that long-term contracts may not be used for more than 25% of the default service prudent mix, with the current statutory cap only allowing a higher percentage of long-term contracts if found by the PUC to be necessary to achieve least cost procurement
HB 2372 maintains the existing definition of a long-term contract as being for more
than four years and not more than 20 years
HB 2372 would also condition long-term contracting to being subject to a determination by the
PUC, after a hearing, that the long-term contracts are, "in the public interest and achieve least cost procurement."
HB 2372 also includes provisions aimed at "hyperscale data centers", including a requirement that hyperscale data centers, "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."
As a policy, the bill generally provides that, "hyperscale data centers built in this
Commonwealth shall pay their own costs for energy and
connecting infrastructure, including bringing their own
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."
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June 5, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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