Pennsylvania Cannabis Cultivation Facility Energy: Lighting, HVAC, and Demand Charges Under PECO and PPL

How PECO and PPL interval data read a grower/processor

Pennsylvania meters see a photoperiod block when lamps run, a lower overnight block, and a humid-summer crest when dehumidifiers and chillers chase latent load. Two billing mechanics follow from that shape. The highest half-hour demand in the billing month sets per-kW distribution on demand-metered schedules. Separately, demand during PJM capacity assignment hours sets a peak load contribution tag that sticks for the planning year no matter which EGS holds the supply contract [pa-puc-retail-markets].

At PECO, Electric Service Tariff No. 8 splits non-residential distribution by voltage and size: Rate GS for general service at secondary voltage, Rate PD for primary distribution power generally above 100 kW at primary voltage, and Rate HT for high tension power [peco-rates-tariffs]. GS carries a per-kW distribution demand charge on billing demand, and the tariff applies a billing-demand floor for larger GS loads with contract demand above 500 kW [peco-rates-tariffs]. At PPL, Rate Schedule GS-1 covers small general service with no demand charge, GS-3 covers general service with demand at secondary or primary voltage, and LP-4 and LP-5 cover large power [pa-papowerswitch]. With only 25 grower/processor permits statewide, most sealed indoor facilities sit on one of the demand-metered schedules once they reach full buildout [pa-doh-growers-processors].

Canopy watts on a combined grower/processor meter

Model 12,000 square feet of flowering canopy at 32 W per square foot under LEDs. Some rooms run 28 W, others 40 W; this is a worksheet input, not a DOH rule. Energized flower lighting alone is 384 kW. Veg, mothers, and shared corridors might add 50 kW for about 434 kW before process equipment starts.

434 kW puts the account on PECO Rate GS with billing demand, or PPL GS-3, and near LP-4 if extraction chillers push the interval higher [peco-rates-tariffs]. Act 16 combines cultivation and processing under one permit, so hydrocarbon chillers and vacuum ovens share the same meter as flower rooms [pa-doh-growers-processors]. Fixture schedule and watt density move this block faster than any other single choice; compare HPS and LED on the lighting cost page.

HVAC and dehumidification in a 5,701 heating degree day climate

Pennsylvania averages 5,701 heating degree days and 706 cooling degree days [noaa-cag-pennsylvania]. Sealed rooms spend most months losing heat through the envelope, so lamp waste heat offsets boiler or reheat work. Latent load spikes when June dew points reach the upper 60s and low 70s F around Philadelphia and the lower Susquehanna, and the Allegheny Plateau stays cooler but still humid [noaa-cag-pennsylvania].

Latent physics are on the dehumidification load page. In Pennsylvania the timing hurts twice: dehumidifiers and chillers peak in July and August while PJM energy and capacity prices also peak. With per-kW delivery and PLC-based capacity pass-through, summer sets both the monthly demand charge and the year-long tag. Continuing the 434 kW lighting block: if HVAC and dehumidification need 180 kW at summer peak and 100 kW on an average day, and pumps, fans, controls, and offices draw 35 kW continuously, summer peak demand is 434 + 180 + 35 = 649 kW. A milder January might peak near 434 + 100 + 35 = 569 kW.

Annual kWh sketch for the 12,000-square-foot grower/processor

Only EIA averages and cited climate normals are facts; table rows are illustrative. Annual energy:

Load	Assumption	Annual kWh
Flower lighting	384 kW, 12 hours a day, 365 days	1,684,320
Veg and mother lighting	50 kW, 18 hours a day, 365 days	328,500
HVAC and dehumidification	100 kW average across the year	876,000
Pumps, fans, controls, office	35 kW continuous	306,600
Total		3,195,420

At the EIA June 2026 Pennsylvania commercial average of 13.33 cents per kWh, that is about $426,000 a year all-in [eia-epm-5-6-a]. At the Pennsylvania industrial average of 10.10 cents it would be about $323,000 [eia-epm-5-6-a]. The 3.23 cent gap between those two averages is the reason this page exists: a grower/processor with a flat, high load factor looks more like an industrial customer, and both its delivery class and its EGS quote should reflect that.

Per-kW distribution demand on PECO GS and PPL GS-3 comes from the tariff, not from your EGS contract [peco-rates-tariffs] [pa-papowerswitch]. Confirm current dollars on the tariff sheet before budgeting. At plausible rates, four summer months near 649 kW billing demand plus eight winter months near 569 kW can produce a six-figure annual delivery total no EGS controls. Demand charges explain the mechanics; HVAC sizing shows how overspecified cooling creates avoidable peaks.

Gas-fired CO2 and July latent peaks

Liquid CO2 adds little beyond controls. Burner enrichment dumps heat and moisture the dehumidifier must remove, so indirect kWh shows on latent equipment. In humid Pennsylvania summers, operators running sealed rooms above 1,200 ppm CO2 often find dehumidifiers, not lamps, set the July interval. Model the stack on the CO2 supplementation page.

Default generation if you never shop an EGS

Large commercial and industrial default service in most Pennsylvania EDC territories is priced hourly off PJM rather than at a fixed Price to Compare [pa-puc-retail-markets]. PECO's Generation Supply Adjustment resets June 1 and December 1 for GS, PD, and HT customers at or below 100 kW; larger customers are on hourly-priced default service [peco-rates-tariffs]. PPL's small C and I default is a fixed PTC reset semiannually; large C and I default service is hourly priced [pa-papowerswitch]. Neither hourly default is a fixed price. A grower/processor that wants budget certainty on the supply side signs a fixed, index, or block-and-index contract with a PUC-licensed EGS.

Expansion choices on capped grower/processor permits

Act 16 allows only twenty-five grower/processor permits statewide, so new canopy usually means expanding an existing site rather than energizing a greenfield license [pa-doh-growers-processors]. Three decisions still lock costs:

1. Service voltage. PECO splits GS, PD, and HT by voltage; primary service generally starts above 100 kW at primary voltage [peco-rates-tariffs]. Owning the transformer trades capital for a different per-kW delivery rate for decades.
2. Contract demand floors. PECO applies billing-demand ratchets on larger GS accounts with contract demand above 500 kW [peco-rates-tariffs]. One bad August afternoon can echo for months.
3. AMI interval exports at commissioning. Demand-metered accounts need interval data to manage peaks and to give EGS suppliers a defensible quote. Request exports during startup, not after the first July bill.

Act 129 efficiency and demand response before the EGS RFP

On demand schedules, tariff per-kW charges are fixed while per-kWh supply is negotiable, so peak kW cuts often beat kWh cuts. PECO Act 129 Phase V covers LED lighting and controls, HVAC, VFDs, motors, and custom work [peco-biz-savings]. PPL's business program pays performance rebates for lighting, HVAC, refrigeration, VFDs, and controls [ppl-biz-savings]. Confirm Phase V measure lists before ordering horticultural fixtures.

Act 129 demand response pays curtailment on called event days through curtailment service providers [cpower-peco-dr]. Grower/processors with flexible lighting can enroll; DR payments sit outside the EGS contract but the same peak shaving lowers PLC tags.

Neighboring tariffs differ. Compare New Jersey cultivation loads and Ohio craft-grow demand classes, then line up PECO, PPL, and Duquesne classes on the Pennsylvania commercial rates page.

Western Pennsylvania: Duquesne GM versus PECO PD

A grower/processor in Allegheny County on Duquesne Light Schedule GM faces different distribution demand mechanics than the same square footage on PECO Rate GS in Montgomery County [duquesne-business-rates] [peco-rates-tariffs]. Duquesne publishes class-average default-service PTCs for GS, GM, and GMH up to four times annually, while PECO resets its Generation Supply Adjustment every June 1 and December 1 for smaller schedules [duquesne-business-rates] [peco-rates-tariffs]. Primary-voltage service above 100 kW at PECO Rate PD trades transformer capital for a different per-kW delivery rate over decades [peco-rates-tariffs]. Benchmark both voltage paths in the tariff PDF before ordering a multi-megawatt transformer.

Act 16 cap and buildout sequencing

Act 16 limits grower/processor permits to twenty-five statewide, so most new canopy comes from existing permit holders expanding square footage rather than greenfield licenses [pa-doh-growers-processors]. Adult-use legislation remained pending in the 2025–2026 session as of September 2026 [pa-legis-sb120]. Size electrical service for current medical throughput and DOH-approved expansion plans, not hypothetical recreational demand that has not cleared the legislature [pa-doh-growers-processors]. An expansion that adds rooms before chillers are commissioned often produces a misleading first-year interval that EGS suppliers price with margin.

Witness test, AMI exports, and the first July bill

Demand-metered accounts should request AMI interval exports during commissioning, not after the first summer invoice arrives [peco-rates-tariffs]. Witness test reports prove the utility's demand register matches your interval peak; lenders and acquirers routinely ask for them in grower/processor diligence [pa-puc-retail-markets]. One bad August afternoon can set both the monthly billing demand and the PJM peak load contribution tag that EDCs use for capacity pass-through all planning year [pa-puc-retail-markets]. File exports with the EGS RFP package so quotes reflect how dehumidifiers actually load the meter, not a spreadsheet assumption.

Packaging a lender diligence utility packet

Acquisition teams reviewing Pennsylvania grows want three years of bills, the active Electric Service Tariff sheet for your schedule, EGS contracts with pass-through language highlighted, and PLC or NSPL tags from the EDC [pa-puc-retail-markets] [peco-rates-tariffs]. Include Act 129 Phase V rebate applications or custom-measure approvals because they document kW reduction the facility already claimed [peco-biz-savings] [ppl-biz-savings]. Note whether the account sits on hourly default or fixed PTC default because that changes pro-forma supply cost more than a two-cent energy spread [pa-papowerswitch]. Cross-reference the Pennsylvania grower/processor case study if your diligence target matches a PPL GS-3 profile.