New PPL Data Center Could Face Pushback
While electricity rates continue to climb, PA consumers are growing more and more angry. Not long ago, the PA PUC warned that more data centers may lead to blackouts next year. So now, even suburban Philly rate payers are now fighting against data centers. So, with all that ill will turned against such projects, it’s a little bewildering that PPL announced a PTC rate increase and its first joint venture data center deal almost in the same breath.
To be clear, the PTC rate is a pass through cost. Customers pay what PPL pays for the electricity. Unfortunately, higher PTC rate are related to rising energy prices due to the growing number of data centers on the PJM grid.
So, it’s not surprising that many energy customers throughout PA are calling for a moratorium on new data centers. And now that Democrats have control of the State Senate, it has a chance of becoming law. And if that goes through, it may affect your PA electricity rates.
PPL Raising Rates for Data Center Supply
PPL is in hot water with the PA PUC. They are currently taking action against the company, saying that their current rate structure puts data center costs unfairly on regular residents. And now for the first time in 15 years the state’s governor has filed to intervene in the case, supporting the PUC.
The utility has also announced their first official agreement to build, own, and operate generators dedicated to data centers. They stated they would be providing 2GW to a QTS data center project in Salem Township. All of this comes in the midst of record profits for the company, as well.
PA Lawmakers Fighting High Energy Bills
But probably the single thing that angers PPL customers most is that it will raise its PTC rate to 14.428 cents per kWh on December 1. This 10% hike raises the average supply bill by nearly $13 for 941 kWh of usage. ON top of this, the average PA electric bill has increased 51% since 2021 due to tight energy supply. Data center growth has been driving up electricity use, even as the average household saw its electricity usage decrease. High bills have led to record utility shutoffs as customers struggle to afford their energy bills.
Lawmakers have been fighting over the best way to lower rates. And while the state house unanimously passed a utility reform bill earlier this year, state senate Republicans stalled it by claiming new regulations would deter new power plants being built. But with more consumers coming out against data centers and the Democrats taking control, a new effort to ban more data centers could be coming to the table.
Keep Your Energy Bills Low this Winter
All the same, with PTC rates are rising this winter, PPL customers need to focus on energy affordability for their homes. Thankfully, shopping to find the best energy supplier is easy. You can compare rates, read reviews, and find rates lower than the PTC. Start the new year off right, and visit https://www.paenergyratings.com.