Too much regulation raises energy prices too high
On average, electric bills for Pennsylvanians are up 73 percent since 2020. The increases range from 55% in east (for PECO customers) to 100% in central Pennsylvania (for PPL customers). Natural gas prices have seen dramatic spikes. With twothirds of our commonwealth’s homes heated by natural gas, it’s no surprise Pennsylvanians’ heating bills are way up.
Our lower-income families are disproportionately more at risk of missing payments. Aid is available, but it’s not enough to outweigh price increases.
When our commonwealth is the number two exporter of energy in the nation and second only to Texas in natural gas production, why do so many in Pennsylvania need help to pay their energy bills? When the state sits on one of the largest and cleanest reliable energy sources ever discovered?
However, Pennsylvanians face surging electric bills because the tidal wave of federal and state regulation — passed under the guise of a cleaning up the environment — together with Russia’s war on Ukraine is driving up the cost of natural gas used to generate electricity.
Ten percent of Pennsylvania-produced electricity still comes from coalfired power plants. But, despite more than $100 billion in investments across the country to reduce emissions, round after round of new federal regulations are killing the industry. Both the Conemaugh and Keystone plants — western Pa. plants which produce enough power to supply about three million homes and employ more than 300 Pennsylvanians — are set to close by 2028.
Pennsylvania, rich with natural gas from the Marcellus Shale, could readily help meet the growing demand for energy at home and abroad. But instead of supporting safe drilling and pipeline development, regulators made it incredibly difficult for producers to work within our borders. According to the Marcellus Shale Coalition, policy barriers have put seven billion cubic feet of pipeline projects “on the shelf.”
But it could get worse. If adopted, the Regional Greenhouse Gas Initiative (RGGI) will further increase electric bills. The multi-state compact would require Pennsylvania to levy a carbon tax on energy production.
Our former governor, Tom Wolf, pushed for Pennsylvania’s entry to the RGGI since 2019. It’s a gift to special interest groups that would kneecap Pennsylvania’s ability to compete with non-RGGI states like West Virginia and Ohio.
The Power PA Jobs Alliance, citing the state’s Independent Fiscal Office (IFO), says RGGI would not reduce carbon emissions and would cost residential consumers an estimated $800 million a year. That works out to an additional increase on residential electric rates for Pennsylvanians of 24 to 36 percent.
State courts have blocked Pennsylvania’s entrance into RGGI as they weigh several lawsuits, and, for now, Gov. Josh Shapiro has shied from committing to it. While withdrawing from RGGI is vital, several other policy options would help lower energy rates for Pennsylvania families.
Shapiro and the legislature should revoke the Alternative Energy Portfolio Standards (AEPS) Act, which requires utility providers to purchase a token amount of electricity from renewable resources. Thanks to the AEPS Act, there’s an estimated $104 million a year added to consumers’ electric bills. He should also reduce the backlog of permit applications and establish a protocol for permitting new natural-gas facilities to get projects moving.
Moreover, Pennsylvania’s House of Representatives should pass the constitutional amendment allowing lawmakers the means to disapprove costly regulations that restrict energy production and hurt consumers. These far-reaching decisions should require a consensus of our directly elected representatives, not the wish lists of unaccountable agency bureaucrats.
Our Keystone State is a national leader in energy production, but ill-advised state policies have kept producers from safely and effectively developing its resources. Amid persistent inflation woes and ever-increasing energy costs, commonsense energy policies in Harrisburg would go a long way toward helping Pennsylvania families afford to heat their homes and keep the lights on.