Democratic Gov. Josh Shapiro said he was pleased to hear the announcement, and Republican Senate Majority Leader Joe Pittman — whose district includes the Homer City project site in Indiana County — called it "historic" in terms of potential jobs and investment.
The announcement underscored the timeliness of a Public Utility Commission hearing scheduled for April 24 to explore how data centers could strain an aging power grid whose future is a source of concern.
The extra load on the grid created by the power needs of data centers might require building new transmission lines or upgrading substations — costs that could increase electricity rates for ordinary consumers, said Darryl Lawrence, acting state consumer advocate. Mr. Lawrence, who expects to testify at the hearing, said his office has no say over the building of power plants, but it does have a voice in protecting Pennsylvania ratepayers.
"We have to devise rates and cost allocations that are fair to everyone," said Mr. Lawrence, who is awaiting confirmation by the state Senate.
Another close observer, Republican Sen. Gene Yaw of Lycoming County, met the Homer City news with resignation.
The chairman of the Republican-led Senate Environmental Resources and Energy Committee for the past 12 years, Mr. Yaw praised the economic upside of the announcement and its prospect of creating thousands of jobs. But he saw nothing that indicated Pennsylvania could avoid brownouts or blackouts in several years' time.
In his view, the state's power grid faces trouble.
Contributing factors, he said, are the state's failure to incentivize building any major new power plants in the last six years; surging demand driven by AI; and Homer City-type announcements that designate electricity primarily for big, private users and not everyday Pennsylvanians.
"It's all coming to roost at the same time," he said.
The Indiana County site previously was home to the state's largest coal-fired power plant. The plan unveiled earlier this week would repurpose it for natural gas-fired operation.
Generating more electricity and keeping it affordable is an important topic as negotiations over the 2025-26 state budget intensify. In those talks, Mr. Shapiro and Mr. Pittman will be on opposite sides of the table.
Mr. Shapiro has pushed hard for his six-part "Lightning" energy proposal including tax credits, a new state siting board to speed the permitting process, and a Pennsylvania-only program meant to cap carbon emissions and lower electricity bills, among other components.
Mr. Pittman has been adamant that Mr. Shapiro must drop any sign of support for the Regional Greenhouse Gas Initiative, a carbon emission-reduction agreement involving a group of states. Republicans say the plan amounts to a tax hike.
The announcement from Homer City drew lavish praise from Mr. Pittman, who called it "truly historic."
"We are talking about a $10 billion capital investment, 10,000 construction jobs and a thousand permanent jobs that will be housed at the Homer City Generating Station property," Mr. Pittman said. Positive impacts "will reverberate throughout this Commonwealth."
Mr. Shapiro, when asked about Homer City and concerns about the future supply of general-use electricity, said a solution could be found if stakeholders work together.
His administration, he said, has been "engaged" with people in Homer City and is glad to see a project moving forward. At the same time, he said there are a "lot of questions that still need to be answered, a lot of permits that need to be received."
Mr. Shapiro said Pennsylvania, already an energy leader, must develop new sources of power — both for economic reasons and for national security.
"I want to make sure we win the battle on AI here in America, and we don't let China beat us on that front," Mr. Shapiro said, adding that "Pennsylvania is going to have something to say about it" because of its strong position in the energy industry.
The way to shield existing ratepayers from higher costs, he said, is to generate more electricity and to construct power purchasing agreements that work for everyone involved.
The top Democrat in the Senate, Jay Costa of Allegheny County, ticked off a list of positive aspects to the Homer City announcement: It gives the state a chance to "really claim that AI space"; the refitted plant's reliance on gas will be much cleaner than its history with coal; and it will advance the governor's energy plans.
On the day Mr. Shapiro addressed the Homer City question, Republican Rep. Bud Cook, R-Washington, was with U.S. Secretary of the Interior Doug Burgum, who visited a natural gas extraction site in the county.
Mr. Cook said he is worried about future energy supplies. He praised the Homer City announcement, but said state leaders have to reverse the direction on energy taken in recent years, which he described as "backwards."
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