USA – PENNSYLVANIA Trends and Developments Contributed by: Erich Schock, Ron Reybitz, Kate Durso and Colin Keefe, Fitzpatrick Lentz & Bubba, PC
versely, acreage and location can lose value quickly if the infrastructure answer is uncertain. Use-specific infrastructure planning is now part of the deal’s front end. It affects site control, purchase agree - ments, financing, incentives, construction scheduling and the public process. The projects that move are likely to be the ones that ask the harder questions before the commitment to a location is adversely For large-load projects, power diligence is no longer a macro conversation about whether Pennsylvania pro - duces enough electricity. It is a micro, site-specific inquiry: which utility serves the property, what load can be served, what upgrades are required, how long the studies will take and what commitments the cus - tomer must make before service is available. That matters most for data centres, but it is not lim - ited to them. Advanced manufacturing, cold storage, heavy industrial users and some life sciences projects can also create electric loads that affect site econom - ics. The business issue is not only whether power can be delivered, but also who pays for the infrastructure, who bears the delay risk, what is the impact on other rate payers if the project goes forward and what hap - pens if the project is reduced, delayed or abandoned after the utility has begun planning around it. impacted by economic constraints. Large Loads, Power and Project Risk PJM Interconnection (PJM) co-ordinates the move - ment of electricity through all or parts of Pennsylvania, Delaware, Maryland, Ohio, nine other states and the District of Columbia. Its long-term forecast under - scores the essential nature of power allocation, with its 2026 forecast projecting that summer peak demand in the PJM footprint could rise by roughly 85,000 MW over 15 years, to more than 241,000 MW. PJM has also been reviewing large-load requests more closely, in part to separate credible projects from duplicative or speculative load estimates. The demand is real, but not every announced data centre or large-load project will be built. The regional supply question remains unresolved. PJM has warned that this region could fall short of required reserves beginning in 2027 if demand grows faster
than new generation, transmission, demand response and other resources can be brought online. There is disagreement over timing and severity, but the issue is now part of development planning. For very large users, the power strategy may need to include on-site or nearby generation, power purchase agreements, storage, curtailment rights or demand-response com - mitments. Pennsylvania’s Public Utility Commission (PUC) has moved into this discussion through its large-load model tariff framework. The framework generally applies to customers above 50 MW individually or 100 MW in the aggregate. It addresses cost responsibility, financial security, study timing, contract terms, exit provisions, queue transparency and self-construction options. The PUC’s role differs from PJM’s role in regional reliability and interconnection, but both will now determine whether a large-load project in Penn - sylvania can be financed and built. For developers and users, the practical answer is to treat power as a critical, even gateway, deal term rather than a utility follow-up. Service commitments, upgrade costs, deposits, minimum-load obligations, termination rights and construction sequencing should be addressed while the project still has lev - erage and optionality. Waiting until after site control is locked down can mean the project has to negoti - ate around constraints it should have discovered and priced earlier. Water, Wastewater and Stormwater Water and wastewater deserve the same early atten - tion. For pharmaceutical manufacturing, food and beverage, healthcare, advanced manufacturing and some data centre cooling strategies, capacity can be as important as electric service. A site may need an authority commitment, a private system, pretreat - ment, discharge approvals, line extensions or plant upgrades before it can operate as planned. These issues can quickly become community issues. A municipality or authority may support economic development but still worry about system capacity, ratepayer impacts, treatment obligations and the tim - ing of public improvements. A project that will draw heavily from local water or wastewater infrastructure
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