State moves ahead with data center electric rate structure

The commission granted the request to open a docket to develop a large load tariff and to pause the interconnection of any new large load facilities in Delmarva Power territory until a large load tariff is established, both of which Delmarva also supported. The Commission will issue a written order at its October 15, 2025, meeting appointing a Hearing Examiner to manage the docket.

Gov. Matt Meyer and Public Advocate Jameson Tweedie have asked the Public Service Commission to place rules and regulations requiring any data center larger than 25 megawatts to pay its fair share to connect.

“We know that AI is shaping the future of the world, and the First State is ready to help lead. But it needs to be done sustainably,” said Gov. Matt Meyer. “That’s why we’re requiring big data centers to pay their fair share when they plug into our power grid. We’re making sure Delaware families don’t foot the bill for the economy of the future, while also reducing negative impacts on air quality, water, and other precious natural resources.”

 “DPA and staff support economic growth and business development but new industries should not impose unfair harms on other Delawareans,” said Jameson Tweedie, Delaware Public Advocate. “A large load tariff helps to ensure data centers pay their fair share, including for the huge investments for electrical infrastructure data centers need. Such a tariff can also help to address risks to grid reliability, if power demand from data centers grows faster than new power generation is built.”

 Data centers require enormous amounts of natural resources. Large load facilities are a rapidly growing industry, but have emerged as a factor in rising electricity rates.

A facility that uses 25 megawatts  or more energy is considered a large load facility. A data center being proposed for Delaware City, for example, would use 1,200 MW of electricity at full operation – almost half the power used by the entire state, which has a peak summer use of about 2,700 MW.

This scale, multiplied by the large number of data centers being built or proposed across the region, has the potential for massive impacts on our energy system and on energy costs. Data centers can also use huge amounts of water for cooling and can cause local impacts, including air and noise pollution, the Public Advocate's office noted.

Establishing a tariff specific to large load facilities, like data centers, can help to ensure these costs are not shifted to other ratepayers. Large load tariffs have been adopted or are being considered in numerous other states, including states across the PJM region, a release stated.