As Pennsylvania faces rising energy demand, expanding data center development, and increasing utility costs, PUC Chairman Stephen DeFrank joined Harrisburg Regional Chamber & CREDC members to discuss the decisions shaping the Commonwealth’s energy future.
The Harrisburg Regional Chamber & CREDC welcomed Pennsylvania Public Utility Commission (PUC) Chairman Stephen DeFrank to its October 8 Policy Pulse Speaker Series for a timely conversation about energy reliability, utility affordability, and the infrastructure needed to support Pennsylvania’s continued economic growth.
Moderated by Chamber & CREDC President & CEO Ryan Unger, the discussion came during a particularly active week for Pennsylvania energy policy. On October 1, the PUC approved a $65 million natural gas rate settlement for UGI Utilities, reducing the company’s original request by nearly 35%, while also advancing proposed emergency curtailment requirements for large electricity users, including data centers. On Tuesday, October 6, DeFrank testified before the Pennsylvania House Energy Committee about the challenges posed by rapidly growing electricity demand and the need for additional generation capacity. The week also saw the Pennsylvania Senate unanimously confirm Commissioner Kathryn L. Zerfuss to a second term on the PUC, providing continuity on the Commission as it addresses increasingly complex energy and utility issues.
“We’re at a crossroads here, and how we handle that is going to make all the difference,” DeFrank told attendees, emphasizing that decisions made today will influence Pennsylvania’s energy future for decades.
Energy policy is business policy.
From utility costs and grid reliability, to new investment and job creation, decisions about Pennsylvania’s energy future have direct implications for employers throughout the Harrisburg region.
Meeting Growing Energy Demand Without Compromising Reliability
Much of the discussion focused on the rapid expansion of data centers and the extraordinary electricity demand associated with these developments.
DeFrank highlighted the PUC’s recently released Assessing Electricity Resource Adequacy in Pennsylvania and PJM study, which examined multiple scenarios for electricity demand and generation capacity through 2030 and 2040. The findings underscore the importance of adding sufficient generation capacity alongside new large-scale electricity users. Read the full study here.
He cautioned that Pennsylvania cannot simply assume its existing electricity infrastructure can accommodate the unprecedented growth projected from data centers and other energy-intensive industries.
“We’re not adding businesses, we’re adding states, we’re adding cities,” DeFrank said, illustrating the magnitude of the electricity needs associated with some proposed developments.
DeFrank also discussed the PUC’s ongoing work to establish emergency curtailment procedures for large-load customers. The proposed requirements seek to ensure these facilities can reduce electricity consumption during grid emergencies, while the Commission continues examining how infrastructure and reliability costs should be allocated.
For Pennsylvania’s business community, the stakes extend beyond data center development. Reliable and competitively-priced electricity is essential to existing employers, manufacturers, commercial development, and the Commonwealth’s ability to attract new investment.
Expanding Generation and Planning for Pennsylvania’s Energy Future
Unger asked DeFrank about the pathway toward developing additional electricity generation, including the potential roles of nuclear power, small modular reactors, and emerging technologies.
DeFrank identified small modular nuclear reactors as a promising long-term opportunity, particularly as technological advances make them more commercially viable. However, he stressed that Pennsylvania must prioritize genuinely new generation capacity rather than relying on existing electricity resources to accommodate additional demand.
He also discussed tightening reserve margins within PJM Interconnection, the regional grid operator serving Pennsylvania, 12 other states, and the District of Columbia. These reserves provide critical protection during periods of unusually high electricity demand or unexpected disruptions.
DeFrank emphasized the need for a comprehensive statewide energy strategy that considers generation, infrastructure, affordability, and economic development together.
Despite Pennsylvania’s standing as one of the nation’s leading energy-producing states, DeFrank expressed concern that energy policies have too often been considered individually, without fully accounting for their cumulative effects on utility customers.
The discussion reinforced the importance of coordinated planning and continued dialogue among policymakers, regulators and the business community as Pennsylvania navigates growing demand and competing infrastructure priorities.
Keeping Utility Service Reliable and Affordable
Affordability remained a central theme throughout the conversation, particularly as households and businesses face continued pressure from rising operating costs.
The PUC’s October 1 approval of UGI Utilities’ natural gas rate settlement illustrated the challenges of balancing infrastructure investment with customer affordability. The Commission approved a $65 million (5.3%) increase in annual operating revenues, compared with UGI’s original request of approximately $99.4 million. The increase will be phased in over two years, with $40 million effective in October 2026 and the remaining $25 million in October 2027.
DeFrank explained that utility rates reflect numerous factors, including inflation, financing costs, aging infrastructure, energy supply expenses, and the investments required to maintain reliable service.
He also discussed the PUC’s Ratemaking Working Group, which is examining opportunities to modernize regulatory processes, improve efficiency, and address the growing complexity of utility rate cases.
Investments in grid modernization were another important consideration. DeFrank pointed to Harrisburg Regional Chamber & CREDC member PPL Electric Utilities’ infrastructure improvements as an example of how technology can strengthen system resilience and improve restoration times following severe weather.
Ultimately, he emphasized that affordability and reliability are inseparable. “If [you] can’t afford to turn on these lights, it doesn’t matter if the electrons are there or not,” DeFrank said.
The conversation provided Chamber members with direct insight into the regulatory decisions influencing utility costs, infrastructure development, and Pennsylvania’s long-term economic competitiveness.
As the Commonwealth continues navigating these challenges, the Harrisburg Regional Chamber & CREDC remains engaged in discussions surrounding energy policy, infrastructure investment, and the conditions necessary to support business growth throughout the region.
The next Policy Pulse Speaker Series will take place Thursday, November 5, featuring Dr. Kyle Kopko, Executive Director of the County Commissioners Association of Pennsylvania, for a discussion on critical issues facing county governments, as well as a special post-election update. Registration is now open through the Chamber’s events calendar Policy Pulse Speaker Series | November 2026 – Harrisburg Regional Chamber & CREDC
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ABOUT HARRISBURG REGIONAL CHAMBER & CREDC
For 140 years, the Harrisburg Regional Chamber & CREDC has served as the region’s catalyst for economic prosperity. The organization combines business, community, and economic development services to enhance the region’s vitality and livability. The Chamber is a five-star accredited chamber through the U.S. Chamber of Commerce—a distinction held by fewer than 1 percent of chambers nationwide. CREDC is the region’s toolbox for economic development. It is the only Certified Economic Development Organization (CEDO) approved by the Commonwealth’s Department of Community and Economic Development to perform economic development activities regionally using Pennsylvania’s funding programs across Cumberland, Dauphin, and Perry counties.
