Who pays for data center power

How Pennsylvania, Virginia, Ohio, Maryland, and Georgia set the terms that data centers and other large electricity customers must accept: size thresholds, minimum bills, contract terms, exit fees, and collateral. Current as of October 2026.

Companion to State data center incentives, compared, which covers the tax side. This comparison covers the electricity side: who carries the cost of the grid built to serve large loads.

PennsylvaniaVoluntary model tariff at 50 MW
VirginiaNew rate class at 25 MW
OhioOne utility's tariff at 25 MW, under appeal
MarylandStatute sets 25 MW; tariffs pending
GeorgiaCustom contracts at 100 MW

Side-by-side comparison

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Pennsylvania Virginia Ohio Maryland Georgia
Who sets the terms
Regulator Pennsylvania Public Utility Commission State Corporation Commission Public Utilities Commission of Ohio Maryland Public Service Commission Georgia Public Service Commission
Mechanism Voluntary model tariff; each utility adopts it through its own tariff filing New GS-5 rate class in Dominion Energy Virginia's rates Data center tariff for one utility, approved as a settlement Statute requires large-load tariffs; utility tariffs pending before the PSC PSC rule allowing customized contracts for Georgia Power's largest customers
Utilities covered All electric distribution companies, as guidance Dominion Energy Virginia AEP Ohio BGE, Delmarva Power, and Pepco filed jointly; the statute also covers Potomac Edison Georgia Power
Decision and date Final order May 12, 2026 (Docket M-2025-3054271) Final order Nov. 25, 2025 (Case PUR-2025-00058); effective Jan. 1, 2027 Order July 9, 2025 (Case 24-508-EL-ATA); effective July 23, 2025 Utility RELIEF Act (HB 1532), enacted May 12, 2026; utility tariff filed Sept. 29, 2026 Rule approved Jan. 23, 2025; effective Feb. 1, 2025
Who it applies to
Size threshold Over 50 MW individually or 100 MW in aggregate; utilities may apply it below 50 MW 25 MW or more New or expanded data center load over 25 MW; mobile data centers over 1 MW 25 MW aggregate monthly demand (lowered from 100 MW) 100 MW or more
Load factor Not specified in sources reviewed 75% or more Not specified in sources reviewed 60% (lowered from 80%) Not specified in sources reviewed
What customers commit to
Minimum bill 80% of contract capacity 85% of contracted transmission and distribution demand; 60% of contracted generation demand Up to 85% of contract capacity, on a sliding scale by size Pending PSC decision Allowed; set contract by contract
Contract term Load ramp period plus a minimum initial term of 5 years 14 years 12 years, including the load ramp Pending PSC decision Up to 15 years under the rule (previously 5); Georgia Power testified its contracts run 15 years or longer
Load ramp Load ramp schedule set in the contract Up to 4 years, adding at least 20% of contracted demand each year 4 years Pending PSC decision Set in each contract
Exit terms 48 months' notice for termination or major capacity reduction Exit fees to recover remaining contract costs on early termination Exit fee equal to three years of minimum charges, or three years' notice after the initial period Pending PSC decision Early termination penalties set in each contract
Collateral Enough to cover network improvement and interconnection facilities costs; reduced or refunded as milestones are met Customers without sufficient credit may have to guarantee up to 60% of minimum charges over the contract term Customers below set credit standards post collateral equal to 50% of total minimum charges; surety bonds not accepted Pending PSC decision Letters of credit or other collateral, per Georgia Power testimony
Costs and oversight
Costs assigned Interconnection and infrastructure costs of serving the customer Transmission, distribution, and generation, through minimum charges Subscribed capacity, regardless of actual use The PSC is directed to consider cost-allocation approaches for large-load customers Upstream generation, transmission, and distribution costs, plus site-specific costs
Regulator review PUC reviews each utility's tariff filing Terms set in the utility's rate case Approved by PUCO as a tariff PSC hearings Oct. 23 and Dec. 8-11, 2026 Contracts filed with the PSC at least 30 days before signing; quarterly reports on new large loads
Status and sources
2026 status Model adopted; utilities adopting through their own filings. HB 2828, which cleared the House Energy Committee in September 2026, would require utilities to adopt it Approved; takes effect Jan. 1, 2027. In August 2026, the SCC ordered Dominion to develop a tariff assigning more transmission costs to data centers In effect; Ohio Manufacturers' Association appeal pending at the Ohio Supreme Court. Substitute HB 646 would create a statewide data center rate class Statute in effect; tariff terms pending In effect; Public Service Commission elections Nov. 3, 2026
Still to verify Nothing outstanding Nothing outstanding Nothing outstanding Terms proposed in the Sept. 29 utility filing; whether Potomac Edison has filed Early termination terms in practice
Sources puc.pa.govpuc.pa.govwomblebonddickinson.com scc.virginia.govscc.virginia.govvirginiamercury.com aepohio.compowermag.comohiocapitaljournal.com utilitydive.comgfrlaw.comdailyenergyinsider.comchestertownspy.org datacenterdynamics.comgovtech.comcomputelaw.blogcleanenergy.org
Last updated 2026-10-06 2026-10-06 2026-10-06 2026-10-06 2026-10-06

What stands out

Five states, five ways of setting terms

Virginia created a rate class in a utility rate case. Ohio approved one utility's tariff as a settlement. Pennsylvania issued a voluntary model for each utility to adopt. Maryland set the threshold by statute and left the terms to pending tariff cases. Georgia allows custom contracts, each reviewed by the commission before signing.

Where terms are written, they look alike

Minimum bills cluster at 80 to 85 percent of contracted demand, with Virginia setting 60 percent for generation. Contracts run 12 to 15 years, and collateral for customers without strong credit runs about half of minimum charges. Pennsylvania's model is the outlier on length, with a five-year minimum after the ramp period and 48 months' notice to exit.

Thresholds vary more than terms

Virginia, Ohio, and Maryland start at 25 MW. Pennsylvania starts at 50 MW individually or 100 MW in aggregate, and Georgia at 100 MW. The same project can fall under very different rules depending on where it is built.

Legislatures are moving into space regulators built

Pennsylvania's HB 2828 would require utilities to adopt the commission's model. Maryland's statute already sets the threshold. Ohio's Substitute HB 646 would create a statewide data center rate class, and a Georgia Senate committee heard testimony this year on a bill to codify the commission's protections.

What to watch

  • October 23 and December 8-11, 2026: Maryland PSC hearings on the BGE, Delmarva Power, and Pepco large-load tariff.
  • Fall 2026: Pennsylvania's HB 2828 awaits a House floor vote.
  • November 3, 2026: Georgia Public Service Commission elections.
  • After November 3, 2026: Ohio's Substitute HB 646 is expected to return; the Ohio Supreme Court appeal of AEP Ohio's tariff is pending.
  • January 1, 2027: Virginia's GS-5 rate class takes effect, with a separate transmission cost tariff still in development.

The question I expect to shape the next round: whether large-load terms stay with regulators, set utility by utility, or move into statute, trading flexibility for uniformity.