What did the commission propose?
On October 1, 2026, the Pennsylvania Public Utility Commission voted 4 to 0 to approve a tentative order that would rewrite the state’s emergency power rules. PUC press release The commission regulates the state’s electric utilities. The order would require every utility to update its plan for cutting power during a shortage, so that large new computing sites without their own new power supply lose power before other customers. It would also bar utilities from listing those sites as critical customers protected from cuts. Tentative Order
The order responds to a supply gap. PJM is the organization that runs the regional power grid for Pennsylvania, 12 other states and Washington, D.C. PJM’s July 2026 auction left the region 6,831 megawatts short of the supply it needs for the delivery year starting in 2028. PUC press release A megawatt is a unit of electric power.
Which sites the rules would cover
The proposed rule calls these users Computational Load Sites. A site qualifies if it expects peak demand of at least 25 megawatts at one connection point, or 50 megawatts across several connection points on one local power line. It must mainly hold computer equipment for software, AI training, cryptocurrency mining or other computing at a data center. Manufacturing facilities are excluded.
The 25 megawatt line is lower than the 50 megawatt line in the model tariff the commission issued in May for connection costs. PUC press release So an AI data center drawing between the two lines could escape the model tariff’s cost rules and still be cut first in an emergency. Utilities would also keep a registry of all large users, old and new, and share it with PJM on request and with the commission each year.
Who loses power at each step of an emergency
The rule sets three steps, each tied to the level of emergency alert PJM has issued. At the first step, a utility may cut only sites covered by IRAS, which is PJM’s proposed service for periods when the region lacks enough supply. The order aims this step at sites that have not secured new supply for all of their demand.
At the second step, curtailment applies to every Computational Load Site, and those on interruptible rates curtail under those terms. At the third and worst step, utilities cut ordinary customers in a set order, and the rule lists these sites as noncritical, so they go before hospitals and homes. Hospitals, police and fire stations rank first for protection, and homes rank third. Neither tier may include a Computational Load Site.
A narrow middle tier exists for sites with an instant backup power system that serve a hospital or similar facility in real time. Protection covers only the part of the site’s demand serving that facility. It applies only after the site’s own backup fails, runs out of fuel or reaches its permit limit. The site must certify its setup, separate that equipment and accept yearly inspection. Tentative Order
| What the rule covers | Before | After |
|---|---|---|
| Order of power cuts | Each utility set its own priorities | The rule sets the order, computing sites first |
| Early shortage step | No separate step for large sites | Utilities may cut sites lacking their own new supply |
| Critical protection | Utility decided who counted as critical | Computing sites excluded except the narrow backup tier |
| Where the plan lives | Paper copy kept at the utility office | Made part of the tariff and posted online |
| Warning customers | No notice duty in the rule | Utility warns affected customers and reports afterward |
The deadlines and the federal ruling
The first step depends on a federal decision that has not gone PJM’s way. FERC is the federal agency that oversees regional grid rules. On October 9 it rejected most of PJM’s plan, including the early cuts to new AI data centers, while approving a registry of large users. AI Next Wave FERC said states should decide which retail customers are cut first.
The proposed rule defines IRAS as the service FERC approves or a later version of it. Until FERC approves some version, the first step would have nothing to act on. The second and third steps rest on state authority alone, and FERC’s ruling pointed to exactly that kind of state rule.
The order was published in the Pennsylvania Bulletin on October 17, 2026. PA Environment Digest Comments are due 30 days after publication, which is November 16, 2026. Reply comments are due 15 days later, on December 1, 2026. The commission asks for comments on how to define which customers cannot be listed as critical. It plans to consider a final order at its January 28, 2027 public meeting, directing utilities to file updated procedures. PUC press release
Tomorrow’s topic
The Colorado PUC decision on Xcel’s AI data center tariff.