State Capitol Update
The Pennsylvania House and Senate return to session this week for their first full legislative week since passage of the state budget in early July. The following issues are circling the Capitol with upcoming deadlines and key topics for voters going into the midterm elections.
Skill games face an October deadline. The Pennsylvania Supreme Court ruled in June that skill games are slot machines under state law but stayed its decision for 120 days. The Pennsylvania State Police has advised businesses that the compliance deadline is October 13. Unless the law changes, establishments outside licensed casinos and qualifying licensed truck stops that continue to possess or operate the machines may face enforcement beginning October 14. PSP has also cautioned that simply unplugging a machine is insufficient; businesses should arrange for its removal. This is an immediate issue for convenience stores and other PPA members that host skill games.
Two bills introduced last week seek to give lawmakers more time to settle a permanent policy. House Bill 2793, sponsored by Rep. Manuel Guzman, would temporarily authorize certain skill games that were in place before the court’s June 15 ruling, through April 13, 2027. House Bill 2795, sponsored by Rep. Brad Roae, would also authorize skill games through April 13, 2027, while lawmakers consider permanent rules. Both bills were referred to the House Gaming Oversight Committee on September 24.
The temporary bills join a growing number of proposals that would establish licensing and regulation for skill games. Lawmakers have yet to agree on a permanent approach to taxation, oversight, and where machines could operate. PPA continues to advocate for a framework that would allow all convenience stores to participate within the framwork.
Data center proposals are moving through the legislature. Governor Shapiro’s August executive order established new requirements for data center projects seeking state permits. House Bill 2674, which would restrict data centers from obtaining public utility status, is scheduled for a House committee vote Tuesday. House Bill 2775, which addresses the electric interconnection process before local land use approval, is scheduled for a committee vote Wednesday. House Bill 2828 is also scheduled for committee vote on Wednesday. The bill would require special electric tariffs for large data center loads so their incremental service costs are not charged to other customers. It also addresses long-term service commitments and load reductions during regional capacity shortfalls.
A September 14 independent analysis released by the PUC warns that rapidly growing electricity demand, driven largely by data centers, could create serious reliability risks in Pennsylvania and the broader PJM region unless new supply keeps pace. Using PJM’s current demand forecast and assuming no additional policy action, the study found that the regional grid would fall short of PJM’s reliability planning standard from 2027 through 2030. The findings describe a modeled risk, rather than a prediction of specific outages.
Utility rates and affordability. Rising bills are prompting scrutiny of utility profits and how infrastructure costs reach customers. The House unanimously passed HB 2224, which addresses utility returns and billing; it is now in a Senate committee. Separately, the PUC has begun reviewing its ratemaking process, including utility returns and transparency in rate settlements. The data center debate adds a related question: how to protect existing customers from costs created by large new loads.
