This summer, Pennsylvania families opened their electric bills and were shocked by how much they’re being charged to keep their homes cool—forcing thousands to cut back on essentials.
A recent poll found that nearly 8 in 10 Pennsylvanians have seen their household energy bills increase over the past two years, and an almost identical percentage are “concerned about the future availability of affordable energy” in the state.
The culprit isn’t some mysterious market force or a sudden shortage of power. It’s the utility monopolies that control the poles and wires that deliver electricity to our homes. Investor-owned utilities are legally allowed to earn a fixed return on nearly every dollar they spend on infrastructure.
That means the more they build, regardless of need, the more they earn. The result has been a culture of “gold plating” the grid, with Pennsylvanians being forced to bear the cost for unnecessary projects and underused equipment.
Take Exelon’s PECO, Pennsylvania’s largest electric utility. It’s promised Wall Street investors billions in new capital spending through 2027, spending that boosts investor profits but raises real questions about whether customers will see any meaningful improvement in reliability. Meanwhile, ratepayers are stuck paying increasingly more for the company’s ambitions.
Utilities blame rising wholesale power costs for these increases. But research shows that generation costs have stayed largely flat when adjusted for inflation. A study by the Electric Power Supply Association and Energy Tariff Experts conclusively proves that the cost to create electricity only accounts for about 45 percent of our electric bills. Instead, the study found that it is the costs utilities charge for delivering energy that have steadily increased over the past 15 years.
Now, these same utilities are asking policymakers in Harrisburg and Washington, D.C., for even more power. They want the ability to control the production of electricity in addition to delivery, and they want us to pay them for it. If history is any guide, the result will be the same: higher bills, less choice, and even more profits for their Wall Street investors.
Pennsylvania has long been a leader in energy. We were one of the first states to embrace competition in the electric market, giving consumers the ability to shop for better rates and keep costs in check for years. But that progress is at risk as monopoly utilities tighten their grip and push for even more control.
It’s time for policymakers in Harrisburg and in Washington to put ratepayers first – by blocking monopoly expansion, demanding transparency on every dollar of spending, and protecting the competition that keeps electric bills affordable.
Pennsylvanians deserve an electric system that works for families and small businesses, not just Wall Street. Until state leaders step up to rein in monopoly power, the painful summer of bill spikes will get worse – and ratepayers will be powerless to stop it.