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The Data Center Divide

Petersburg Borough

Anti-Data Center Policies

Petersburg Borough raises electricity rates for large commercial users and new-service connection fees, increasing data-center costs, but some qualifying customers may receive a conditional, time-limited lower rate; the ordinance does not ban data centers.

Incentives

Water and electricity

Classification applies to Chapter 14.16 as a whole, not to a new or expanded incentive created by the 2026 amendment. The chapter establishes an economic-development power rate intended to encourage capital investments and jobs, with no demand charge and a maximum three-year term. The benefit already appears in the attached 2018 ordinance, section 14.16.716. Ordinance 2026-08 increases the customer charge from $30.00 to $31.20 and the energy charge from 10.5 to 10.9 cents/kWh; it does not introduce, extend, or expand the economic-development benefit.

current law · County measure
Establishes operating, safety, service, and billing rules for Petersburg Borough’s municipal electric utility, including a requirement to provide the best service reasonably consistent with sound business principles and treat customers uniformly and equitably (Chapter 14.16).Petersburg Borough Code Chapter 14.16 (Electric Utility)

What this means

The measure raises large-commercial electricity rates and substantially increases new-service connection fees, adding meaningful costs for a data center. A lower economic-development rate is available to some qualifying customers, but it is conditional and time-limited, so it may not offset those costs; the ordinance also does not ban data centers. Higher large-commercial rates and increased connection fees

People behind it

  • Proposed the 2018 utility reorganization and is authorized to establish and implement procedures for administering the electric utility.

  • Adopted and approved the ordinances amending Chapter 14.16, including the 2018 reorganization and 2026 rate and fee updates.

  • The governmental entity that formally ordained and codified the Chapter 14.16 amendments.

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  • Administers the electric utility and makes recommendations concerning rates, charges, and utility operations under the amended chapter.

Restrictions & requirementsHide restrictions & requirements24
  • A utility permit is required before installing, altering, or adding most electrical equipment. The applicant must submit an approved drawing or work description and pay applicable permit fees; limited exceptions cover minor repairs, portable equipment, utility-owned equipment, and equipment manufacturing or testing.

  • Electrical work must remain available for inspection. Work may not be concealed before the electrical inspector has been notified and given a reasonable opportunity to inspect it, and the inspector may order work suspended when there is no lawful permit, the work does not follow approved plans, or materials or workmanship are noncompliant.

  • A facility may not be connected to the electrical supply until the electrical inspector has been notified and given a reasonable opportunity to inspect the workmanship and materials; defects or unsatisfactory work must be corrected before connection.

  • The borough has adopted the 2017 editions of the National Electrical Code and National Electrical Safety Code, requiring covered data-center electrical installations to comply with those standards.

  • New electric-service applicants must provide information about anticipated load, voltage, phase, and how the power will be used. New service also requires an application, an applicable account deposit before energization, and connection and permit fees.

  • The utility director may refuse to connect or may discontinue service for noncompliance with electric codes, service policies, rate schedules, contracts, or for theft or illegal diversion of energy. The director may also refuse loads that would be detrimental to service provided to other customers.

  • Customers must notify the utility sufficiently in advance of a material service-load increase. If the customer fails to provide notice and utility equipment is damaged as a result, the customer is liable for the damage.

  • For large loads, the utility may require a service voltage or phase different from 120/240-volt single-phase service. Motor loads aggregating 25 horsepower or more must be arranged with the utility director, who may require reduced-voltage starting equipment when necessary to prevent excessive voltage disturbances.

  • Commercial or industrial service with demand greater than 50 kilovolt-amperes or greater than 50 kilowatts is subject to the large-commercial rate schedule, including a monthly customer charge, a demand charge, an energy charge, a minimum demand charge of at least $200 after July 1, 2026, and power-factor adjustments.

  • Industrial users with a monthly power factor below 90 percent are subject to penalties. The utility is not obligated to deliver power below an 80-percent power factor unless specifically agreed, and power-factor correction equipment requires utility-director approval.

  • The customer is responsible for all equipment on the load side of the delivery point, including suitable protective equipment and protection against phase failure and under- or over-voltage. The utility may refuse or discontinue service when customer wiring or equipment is hazardous or violates applicable codes.

  • The utility director and authorized employees may access electrical equipment at all reasonable times to read meters, test equipment, or repair or replace utility-owned equipment. Customers must provide safe meter access, maintain at least 30 inches of clear space in front of the meter, and provide keys where locks obstruct access.

  • The utility will generally provide service only up to 100 feet into private property. Additional extensions and voltage differences are at the customer's expense; underground service also requires the customer to provide trenching, bedding, compaction, and backfill, and underground service may not be installed under a structure.

  • New-service charges can create substantial upfront costs. Under the FY 2027 amendments, commercial single-phase connections range from $1,200 to $2,400 plus transformer costs and, for services above 200 amps, $15 per required KVA; commercial three-phase connections range from $2,000 to $2,750 plus transformer costs and applicable KVA charges.

  • The amended service-charge schedule increases the normal-hours connect or reconnect fee to $50, the transfer fee to $40, and the customer-initiated meter-testing fee to $100. Secondary service work is charged at actual cost, including applicable overtime and double-time rates for work outside normal hours.

  • Commercial electrical permit fees are $75 plus $0.25 per socket or outlet. Additional inspections cost $50 each, and failing to obtain a permit by the second workday after work begins adds $50 to the permit fee.

  • Commercial customers may be required to provide an account deposit of $400, and service deposits may be required for customers without recent Petersburg municipal utility service or with prior delinquency or disconnection. A delinquent customer must generally pay outstanding utility bills, make a new deposit, and pay the applicable connect fee before service is restored.

  • Electric service may be disconnected when any part of a delinquent municipal utility bill remains unpaid by the end of the following billing cycle. Past-due balances accrue interest at 10.5 percent per year, and restoration generally requires payment of the balance, interest, and reconnect charges or an approved payment arrangement.

  • The fuel and purchased-power adjustment may be applied to every kilowatt-hour billed. Under the 2026 amendments, the adjustment may also include diesel-generation costs above the current fiscal year's budgeted fuel cost, with the charge calculated using generation and purchased-power data for the applicable billing period.

  • Upon the electric utility director's recommendation and borough manager's approval, a diesel-generation adjustment may be imposed for unplanned and unbudgeted diesel generation needed because of insufficient purchased power or an emergency.

  • The borough may temporarily suspend service for repairs or system improvements and may limit electricity use during a serious power shortage through a curtailment program. The borough disclaims liability for injuries, losses, or damages resulting from an unannounced interruption.

  • Customers may not use electric service in a way that causes disturbances or voltage fluctuations affecting other customers. Customers using equipment such as large motor-starting equipment must install, at their own expense, equipment to control those fluctuations.

  • Separate meters are required for each dwelling, house, business, boat, trailer, or other occupancy, and customers may not connect their service to another person's service or resell electricity through their service.

  • Temporary electrical installations generally may not be permitted for more than 30 days; a construction-related temporary installation may be authorized for no more than six months. Temporary installations must substantially comply with the chapter's permanent-work requirements and may be disconnected if they create hazards.

Benefits & exceptionsHide benefits & exceptions4
  • Economic-development electricity rate: New commercial or industrial customers with peak demand of at least 50 kilowatts, and existing customers adding at least 50 kilowatts, may qualify for a rate with a $31.20 monthly customer charge, no demand charge, and a 10.9-cent-per-kWh energy charge. The rate can last up to three years after eligibility is proven. Eligibility requires assembly approval, a written application, proof within 12 months, and either no significant additional utility investment or payment of applicable line-extension and transformer costs. (applicant eligibility requirements)

  • Utility-funded service extension: The municipal electric utility will provide service up to 100 feet into private property for a customer's delivery point. Underground service of up to 100 feet may also be provided under the connection-fee schedule, although the customer must pay for trenching, backfill, bedding, and compaction; extensions beyond 100 feet and voltage differences are the customer's responsibility. (furnish a service up to 100 feet into private property)

  • Temporary construction power: The electrical inspector may issue permits for temporary electrical installations used during building construction for up to six months, subject to safety requirements and compliance with the chapter. (a temporary installation to be used for the construction of a building)

  • Permit-processing deadline: Electrical permits must be issued by the electrical inspector within 72 hours after application, excluding Saturdays, Sundays, and holidays, although a $50 surcharge applies if the applicant began work without obtaining the permit by the second workday. (Permits will be issued by the electrical inspector within 72 hours)

Sources

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