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Pennsylvania Cannabis Extraction and Processing Energy: Chillers, Ovens, and Combined Grower/Processor Loads

Pennsylvania does not issue separate processor licenses. Act 16 combines cultivation and processing under one grower/processor permit capped at 25 statewide, so most extraction load sits on the same meter as the flowering rooms rather than in a stand-alone lab. That combined profile still has process-specific peaks from chillers, vacuum ovens, and C1D1 ventilation, and the state's flatter batch-driven load can land on a different delivery class threshold than the lighting block alone would suggest.

By Jason Taken, Founder, Jaken Energy

Updated September 11, 2026Last verified: September 11, 2026
Avg. commercial price
13.33 cents/kWh
June 2026
U.S. average
14.19 cents/kWh
June 2026
Energy choice
Retail electric choice under the Electricity Generation Customer Choice and Competition Act
All residential, commercial, and industrial customers of the seven PUC-regulated EDCs (PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, Penn Power, West Penn Power) plus the smaller regulated EDCs (UGI Utilities, Citizens' Electric, Wellsboro Electric, Pike County Light & Power). Rural electric cooperatives and municipal systems are outside the PUC choice framework.
Cooling / heating degree days
706 / 5701
Annual normals; see climate source

Pennsylvania figures last verified 2026-09-11. Full citations in the Sources section.

How Act 16 shapes the processing load in Pennsylvania

Most states treat cultivation and processing as separate license types. Pennsylvania does not. Act 16 caps grower/processor permits at 25 statewide, with no more than five also holding dispensary permits, and each permit authorizes both cultivation and processing under one roof [pa-doh-growers-processors]. The Department of Health publishes approved grower/processors as a downloadable list rather than a headline count [pa-doh-growers-processors].

For energy planning that means extraction chillers, vacuum ovens, solvent recovery skids, and C1D1 ventilation usually sit on the same meter as the flowering rooms. The utility sees one peak, one delivery class, and one PLC tag. The extraction load page describes the equipment; the Pennsylvania-specific question is how that equipment stacks on top of a lighting-dominated base load that already pushed the account into a demand-metered schedule.

Process loads on a combined meter

Assume a grower/processor in PPL territory with 10,000 square feet of flowering canopy at 35 W per square foot, for 350 kW of lighting when every fixture is on. That is an assumption. Add a hydrocarbon extraction suite with:

EquipmentAssumed draw when runningTypical run pattern
Chiller for cold recovery45 kWCycles with batch; peaks when lights and HVAC are also high
Vacuum oven bank25 kWHolds for 8 to 24 hours per batch
Solvent recovery condenser20 kWOverlaps with oven and chiller
C1D1 exhaust and makeup air15 kWRuns whenever solvent is in the room
Lab HVAC30 kWHigher in summer

If a batch runs during the summer lighting window, total meter demand can reach 350 + 45 + 25 + 20 + 15 + 30 = 485 kW before counting grow HVAC. That keeps the account on PPL GS-3 with demand billing, or PECO Rate GS with a per-kW distribution demand charge [pa-papowerswitch] [peco-rates-tariffs]. Scheduling heavy extraction runs during off-peak lighting hours, when veg rooms are dark and flower rooms are in their dark period, is one of the few levers a combined facility has without changing the cultivation schedule.

How Pennsylvania rates treat a batch-driven load

Pennsylvania's commercial average was 13.33 cents per kWh in June 2026, below the U.S. average of 14.19 cents [eia-epm-5-6-a]. The industrial average was 10.10 cents [eia-epm-5-6-a]. A combined grower/processor with a high load factor and a relatively flat total profile, lighting block plus staggered batches, can price supply closer to the industrial line than a facility whose process peaks stack on top of a July dehumidification peak.

Large commercial and industrial default service in most EDC territories is priced hourly off PJM [pa-puc-retail-markets]. A batch that happens to run during a PJM price spike shows up immediately on an hourly default bill. A fixed EGS contract converts that exposure into a known supply price, though capacity pass-through still follows the PLC tag. The fixed vs. index contract page covers when each structure fits.

Summer humidity and chiller sizing

Pennsylvania averages 706 cooling degree days against 5,701 heating degree days [noaa-cag-pennsylvania]. Process chillers reject heat into a plant that is already fighting latent load from dehumidification in July and August. Oversizing the extraction chiller without checking the combined peak can move the meter from GS-3 toward LP-4 at PPL or trigger PECO's billing-demand floor for contract demand above 500 kW [peco-rates-tariffs]. Right-size the chiller to the batch, not to a nameplate that never runs at full load during peak hours.

Duquesne Light's Pittsburgh territory uses rate schedules GS through GL and L, with per-kW demand charges on GL at 300 kW and above [duquesne-business-rates]. A grower/processor in Allegheny County faces the same combined-meter problem with a Default Service Supply rider that can adjust up to four times a year [duquesne-business-rates].

A worked cost for the combined example

Annual energy, all assumptions:

LoadAssumptionAnnual kWh
Flower and veg lighting350 kW average across photoperiods1,750,000
Extraction and lab60 kW average when batches run 16 hours a day, 250 days a year240,000
Grow HVAC and dehumidification90 kW average788,400
Pumps, fans, controls30 kW continuous262,800
Total3,041,200

At 13.33 cents per kWh that is about $405,400 a year in energy [eia-epm-5-6-a]. Add delivery demand charges at the tariff rate for the account's class, which must be confirmed on the current PECO or PPL sheet [peco-rates-tariffs] [pa-papowerswitch], plus PJM capacity pass-through on the PLC tag [pa-puc-retail-markets]. The demand and capacity lines can exceed the energy line on a combined grower/processor meter.

Power factor and motor loads

Chillers, condensers, and large exhaust fans can pull power factor below unity. Poor power factor does not change kWh, but it can increase apparent demand on tariffs that bill on kVA or apply a power factor adjustment. The power factor page covers when that matters. On a combined meter, a process motor starting during the lighting window can also create a spike that sets billing demand for the month even if the average load looks flat.

Submetering if you want to see the split

Act 16 puts cultivation and processing on one permit, but submeters between the flower rooms and the extraction suite still help internally. You can see whether a batch schedule is adding peak kW on top of the lighting block, which tells you whether to move runs or upgrade equipment before the next PLC assignment window. The submetering page covers installation without changing the utility's single delivery class.

Incentives for process-side upgrades

PPL Electric's Act 129 business program covers HVAC, refrigeration, VFDs, controls, CHP, and custom measures [ppl-biz-savings]. A VFD on a chiller or condenser fan is often a custom project with a better rebate than a prescriptive lighting measure. Confirm Phase V measure lists and budgets before committing capital, because Phase IV ended May 2026 and Phase V schedules began June 1, 2026 [ppl-biz-savings].

The New Jersey extraction page and the Ohio extraction page cover stand-alone processor scenarios in neighboring markets. The Pennsylvania cultivation page covers the lighting side of the same meter, and the PPL territory case study walks through a combined facility example.

Vertical grower/processor meters

Pennsylvania issues combined grower/processor permits under one cap [pa-doh-growers-processors]. Cultivation lighting and extraction batch equipment on one meter require demand-metered service planning from day one [peco-rates-tariffs]. Separate submeters for COGS tracking even when one utility meter serves both operations [pa-puc-retail-markets]. Hydrocarbon recovery peaks stack on lighting blocks during PECO time-of-use peak hours if schedules align [peco-rates-tariffs].

Quarterly bill review cadence

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-doh-growers-processors]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [peco-rates-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [pa-papowerswitch]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Documentation for audits and lenders

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-doh-growers-processors]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [peco-rates-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [pa-papowerswitch]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Board reporting on utility COGS

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-doh-growers-processors]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [peco-rates-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [pa-papowerswitch]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Tariff verification before budgeting

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-doh-growers-processors]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [peco-rates-tariffs]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [pa-papowerswitch]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Compare with other states

Frequently asked questions

Does Pennsylvania issue separate processor licenses?

No. Act 16 caps grower/processor permits at 25 statewide, and each permit combines cultivation and processing under one roof. The cultivator and processor counts are the same population. Extraction equipment typically shares the grower/processor meter rather than sitting on a separate processing-only account.

Is a Pennsylvania extraction load flatter than a grow load?

The process side is batch-driven: chillers cycle, ovens hold temperature for hours, and C1D1 ventilation runs whenever solvent is present. That produces a different shape than the flat lighting block, but on a combined grower/processor meter the lighting load usually still dominates peak demand unless the lab runs heavy hydrocarbon or ethanol recovery during summer cooling season.

What delivery class does a combined grower/processor reach?

It depends on total meter peak, not on which room caused it. At PECO, Rate GS carries per-kW distribution demand on billing demand, with a floor for contract demand above 500 kW. At PPL, GS-3 and LP-4/LP-5 apply by measured demand. A facility with 400 kW of lighting plus 80 kW of simultaneous chiller and oven load peaks at 480 kW on one meter.

Can a processor schedule runs to avoid PJM peaks?

Yes, if the meter has interval data and the production schedule allows it. Batch timing that keeps chillers and ovens off during likely PJM coincident peak hours can lower the PLC tag that sets a year of capacity cost. The lighting block still runs on its photoperiod, so the practical window is often the hours when lights are off or dimmed.

Does hourly default service matter for a processor?

Large commercial and industrial default service in most Pennsylvania EDC territories is priced hourly off PJM rather than at a fixed Price to Compare. A grower/processor above the small-C and I threshold that takes default service exposes both the lighting block and the batch process load to hourly wholesale volatility. A fixed EGS contract separates supply price from the hourly index.

Are there rebates for chiller or HVAC upgrades at a processor?

PPL Electric's Act 129 business program covers HVAC, refrigeration, VFDs, and custom measures. PECO's Phase V program covers HVAC and custom projects. Confirm current Phase V eligibility before sizing a chiller upgrade around a rebate figure.

About the author
Jaken Energy

Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.

Sources

Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.

  1. [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025U.S. Energy Information Administration. Accessed 2026-09-11.
  2. [pa-doh-growers-processors]Medical Marijuana: Growers-ProcessorsPennsylvania Department of Health. Accessed 2026-09-11.
  3. [pa-puc-retail-markets]Retail MarketsPennsylvania Public Utility Commission. Accessed 2026-09-11.
  4. [peco-rates-tariffs]PECO Rates and Tariffs (Electric Service Tariff No. 8, effective April 1, 2026)PECO. Accessed 2026-09-11.
  5. [pa-papowerswitch]PAPowerSwitch: The Official Electric Shopping Website of the Pennsylvania Public Utility Commission (including Shop for Business)Pennsylvania Public Utility Commission. Accessed 2026-09-11.
  6. [duquesne-business-rates]Business Rates and Tariff ResourcesDuquesne Light Company. Accessed 2026-09-11.
  7. [noaa-cag-pennsylvania]Climate at a Glance: Pennsylvania statewide heating and cooling degree days, 1991-2020 base period averagesNOAA National Centers for Environmental Information. Accessed 2026-09-11.
  8. [ppl-biz-savings]PPL Business Energy Efficiency ProgramPPL Electric Utilities. Accessed 2026-09-11.