Pennsylvania is entering a new era of digital and economic growth. As data center development accelerates, we are seeing the arrival of infrastructure that will underpin our modern economy. While these “large load” users represent a major investment in the commonwealth’s future, their enormous energy demands require us to be proactive in managing our grid and protecting residents.
State Rep. Rob Matzie’s House Bill 1834, the Data Center Act, is a thoughtful and necessary response to this growth. It establishes a framework to ensure that as these facilities integrate into our communities, they also contribute to the state’s energy safety net. However, as the bill moves to the state Senate, we must remind regulators that a 40‑year‑old definition of “need” risks overlooking hundreds of thousands of Pennsylvania families.
The reality of the fiscal cliff
HB 1834 creates a landmark Data Center Low-Income Home Energy Assistance Program (LIHEAP) Enhancement Account — a significant victory for advocacy. But by tying this new revenue strictly to the federal LIHEAP framework, we are bound to an eligibility cap of 150% of the Federal Poverty Income Guideline. This means a family of four earning just one dollar over $49,500 a year loses all access to hundreds of dollars in federal utility assistance.
In today’s economy, that isn’t a comfortable living — it’s a survival line. For a single mother or a senior on a fixed income, this creates a devastating “fiscal cliff.” In an era of persistent inflation, a $49,500 income for a family of four barely covers the essentials; losing utility support on top of that can be the breaking point.
Simply put, earning just a few dollars more than the 150% limit does not mean a household is financially secure; it simply means they lose access to hundreds of dollars in assistance through the federally funded LIHEAP program. A modest cost‑of‑living raise or a few hours of overtime can result in a complete loss of much needed support, leaving families to face rising utility costs with no safety net at all.
The ALICE population: Caught in the middle
In Pennsylvania, these residents are known as ALICE: Asset Limited, Income Constrained, Employed. They are the backbone of our communities — healthcare workers, delivery drivers, retail managers and countless others.
Households earning under 150% of the poverty level have access to existing protections, including federal LIHEAP grants and customer assistance programs (CAPs), which provide reduced monthly bills and debt forgiveness. These tools are vital and effective, but they end abruptly at the 150% line.
As the CEO of Dollar Energy Fund, I see the impact of these policy gaps every day. For more than 40 years, our organization has stood in the gap for limited‑income households, serving as a primary link between families in crisis and the resources they need to keep their lights on and their homes warm. We specialize in reaching those who fall through the cracks of federal mandates, providing stability for the ALICE population when they encounter unexpected hardship. Our work is about ensuring that the systems meant to help Pennsylvanians actually work for the people who need them most.
A better path forward: Leveraging proven systems
To fulfill the potential of this legislation, we must ensure that the relief matches the scale of the impact. As these data centers integrate into our power grid as “large load” users, they have a unique corporate responsibility to ensure the communities hosting them remain stable and powered. The Senate should consider essential adjustments to HB 1834:
• Expand eligibility beyond the 150% cap: The “utility burden” does not disappear at the 151st percentile. Expanding eligibility ensures that working-class ALICE households — who are often just one missed paycheck or one heat wave away from crisis — are protected alongside our most vulnerable neighbors.
• Integrate with existing utility hardship funds: As data centers enter our communities as large load users, they have a unique corporate responsibility to help maintain the energy stability of the residents living alongside them. Rather than adding administrative strain to federal programs, these new revenues should flow into established utility hardship funds. This approach offers clear advantages:
• Shareholder matching: Directing these revenues through established hardship funds doesn’t just help residents; it allows these new tech partners to see their contributions leveraged through utility shareholder matching, maximizing the positive impact of their arrival in the commonwealth.
• Efficiency and lower overhead: Hardship funds historically operate with lower administrative costs, ensuring more dollars go directly to paying down bills.
• Proven infrastructure: These funds already have the systems in place to verify income and serve the population falling between the 150% ($49,500 for a family of four) and 250% FPIG levels.
• Speed of delivery: Leveraging these existing programs ensures assistance reaches families quickly and effectively without the need for new government bureaucracy.
The bottom line
We cannot build a 21st‑century energy economy on the foundation of 20th‑century poverty standards. With utility costs in Pennsylvania continuing to climb — rising by double digits in several regions over the past year — the “fiscal cliff” has become a precipice threatening to pull thousands of ALICE households into a cycle of debt.
Working families just above the poverty line deserve to be part of our state’s energy solution. We are inviting the technology of the future into Pennsylvania; let’s make sure we aren’t using a safety net from the past to protect the people who live here. It is time for the Legislature to ensure that we do not leave the very people who power our commonwealth stranded in the cold.
Chad Quinn is CEO of the Dollar Energy Fund.