HB 2372 — An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, further providing for declaration of policy, for standards for restructuring of electric industry and for duties of electric distribution companies.

PRINTER'S NO.     3161

                       THE GENERAL ASSEMBLY OF PENNSYLVANIA



                           HOUSE BILL
                           No. 2372
                                                  Session of
                                                    2026

     INTRODUCED BY C. WILLIAMS, PICKETT, STAATS, GAYDOS, KUZMA, MOUL,
        M. MACKENZIE, STEHR, D'ORSIE, SHAFFER, CUTLER, COOPER, RADER,
        CIRESI, M. BROWN, EMRICK, SMITH, GLEIM, SCHEUREN, OLSOMMER,
        MARCELL, B. MILLER AND WALSH, APRIL 9, 2026

     REFERRED TO COMMITTEE ON ENERGY, APRIL 9, 2026


                                       AN ACT
 1   Amending Title 66 (Public Utilities) of the Pennsylvania
 2      Consolidated Statutes, in restructuring of electric utility
 3      industry, further providing for declaration of policy, for
 4      standards for restructuring of electric industry and for
 5      duties of electric distribution companies.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.      Section 2802 of Title 66 of the Pennsylvania
 9   Consolidated Statutes is amended by adding a paragraph to read:
10   § 2802.    Declaration of policy.
11      The General Assembly finds and declares as follows:
12             * * *
13             (22)    Since continuing and ensuring the reliability of
14      electric services depends on adequate generation and
15      conscientious development and maintenance of transmission and
16      distribution systems, hyperscale data centers built in this
17      Commonwealth shall pay their own costs for energy and
18      connecting infrastructure, including bringing their own
 1      baseload generation onto the grid and building necessary
 2      infrastructure to connect their generation and facilities to
 3      the grid no matter how attenuated those infrastructure needs
 4      may be from the actual site of the facility.
 5      Section 2.      Section 2804(1) introductory paragraph of Title
 6   66 is amended and the paragraph is amended by adding a
 7   subparagraph to read:
 8   § 2804.    Standards for restructuring of electric industry.
 9      The following interdependent standards shall govern the
10   commission's assessment and approval of each public utility's
11   restructuring plan, oversight of the transition process and
12   regulation of the restructured electric utility industry:
13             (1)   The commission shall ensure the continuation of safe
14      and reliable electric service to all consumers in [the] this
15      Commonwealth, including:
16                   * * *
17                   (iii)   That hyperscale data centers built in this
18             Commonwealth shall provide their own baseload generation
19             which shall consist of new generation build or
20             repurposing previously retired generation assets which
21             may be refitted to comply with existing law. The
22             following shall apply:
23                       (A)     Baseload generation shall be built in this
24                   Commonwealth.
25                       (B)     Hyperscale data centers shall pay their own
26                   costs for interconnecting with transmission and
27                   distribution systems regardless of the proximity of
28                   those costs to the data center and the generation
29                   facility.
30                       (C)     The commission shall determine what

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 1                 constitutes a hyperscale data center in terms of
 2                 generation requirements.
 3             * * *
 4      Section 3.     Section 2807(e)(3.2)(iii) of Title 66 is amended
 5   and the section is amended by adding a subsection to read:
 6   § 2807.    Duties of electric distribution companies.
 7      * * *
 8      (e)    Obligation to serve.--A default service provider's
 9   obligation to provide electric generation supply service
10   following the expiration of a generation rate cap specified
11   under section 2804(4) (relating to standards for restructuring
12   of electric industry) or a restructuring plan under section
13   2806(f) is revised as follows:
14             * * *
15             (3.2)   The electric power procured pursuant to paragraph
16      (3.1) shall include a prudent mix of the following:
17                 * * *
18                 (iii)   Long-term purchase contracts with Pennsylvania
19             electric generators, entered into as a result of an
20             auction, request for proposal or bilateral contract that
21             is free of undue influence, duress or favoritism, of more
22             than four and not more than 20 years. The default service
23             provider shall have sole discretion to determine the
24             source and fuel type. Long-term purchase contracts under
25             this subparagraph [may not constitute more than 25% of
26             the default service provider's projected default service
27             load unless the commission, after a hearing, determines
28             for good cause that a greater portion of load is
29             necessary to] are subject to a determination by the
30             commission, after a hearing, that the contracts are in

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 1        the public interest and achieve least cost procurement.
 2        This subparagraph shall not apply to contracts executed
 3        under paragraph (5).
 4        * * *
 5    (f.1)   Hyperscale data center integration.--
 6        (1)   Each electric distribution company shall cooperate
 7    with the development and deployment of hyperscale data
 8    centers to facilitate siting, infrastructure planning and
 9    expedited interconnection, including:
10              (i)    Facilitating the interconnection of customer-
11        owned or third-party-owned generation assets located on
12        or adjacent to the hyperscale data center site.
13              (ii)    Incorporating projected hyperscale data center
14        loads into long-term infrastructure and capital
15        improvement plans submitted to the commission.
16              (iii)    Prohibiting cross-subsidization with other
17        rate classes serviced by the electric distribution
18        company.
19              (iv)    Ensuring that the hyperscale data center pays
20        all costs associated with the development and deployment
21        of their facilities and infrastructure.
22        (2)   So as not to cause undue burden or delay on the
23    development of new electricity resources required by section
24    2804(1)(iii), the commission shall establish compliance
25    deadlines specifically tailored to expedite the electric
26    distribution company cooperation in the development of
27    hyperscale data center infrastructure required under
28    paragraph (1).
29        (3)   Nothing in this subsection may affect the zoning
30    authority of a municipality.

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1     * * *
2     Section 4.    This act shall take effect in 60 days.




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