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Pennsylvania Gov. Directs "Rapid" Development Of Rules By PUC To Assign PJM Backstop Reliability Costs
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Pennsylvania Governor Josh Shapiro has signed a wide-ranging executive order concerning data centers that, among other things, directs the "rapid" development of rules and orders by the Pennsylvania PUC to address the allocation of PJM Backstop reliability costs and related obligations
Under the executive order, the governor's special counsel for energy shall work with the PUC to "advocate" for the "rapid" development of rules, procedures, and orders to establish utility tariffs that would, among other things, "Charge the appropriate data center customers for any PJM reliability
backstop auction costs in accordance with the procedures ultimately
approved by the Federal Energy Regulatory Commission in docket
ER26-3380-000[.]"
The Governor will also seek PUC orders that prevent an electric utility from charging non-data center customers for
backstop auction costs, "including in the event that a data center
becomes insolvent or is otherwise not able to pay the auction costs
assigned to it[.]"
The Governor will also seek PUC provisions that would require that each electric utility that has received a request to interconnect
a data center in its territory shall file with the PUC revisions to both
its pre-emergency interim resource adequacy service (IRAS) and
emergency load control procedures, so that utilities curtail data centers
prior to any other customer during pre-emergency IRAS or emergency
events, unless the data center customer has secured incremental
electric capacity for the entirety of its demand
The Governor also seeks, at the PUC, the implementation of credits pertaining to PJM’s pre-emergency IRAS
program following the Federal Energy Regulatory Commission’s
ultimate disposition of relevant rules and procedures in docket ER26-3515-000
The Governor further seeks adjustments to the electric utilities' load forecasts, and seeks to direct the EDCs' use of the PJM large load registry
Shapiro said in remarks that the executive order will require data center developers to "bring their own power" and pay for all the costs associated with that electricity
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August 19, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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