Shapiro’s Utility Plan Won’t Fix Pennsylvania’s Power Shortage

Member Group : Broad + Liberty

By Ross Marchand

Electricity bills keep going up, and Pennsylvania consumers are feeling the pain. For example, in Pittsburgh last year, many residents saw bills skyrocket fifteen percent in June and more than ten percent in December. Instead of embracing reforms that could lower prices, the state’s elected leaders are engaging in petty political games. Democratic Gov. Josh Shapiro’s recent letter to utilities, urging them to halt rate increases, does more to score political points and generate headlines than to deliver meaningful relief to Pennsylvanians struggling to pay the bills.

The governor has called on 24 Pennsylvania-based utility companies to “control costs” and justify rate requests that, in his view, place too great a burden on consumers. It’s an understandable political message at a time when families are feeling the squeeze. But it’s also one that fundamentally misunderstands how the system actually works and what is actually driving rate increases.

In Pennsylvania today, utilities are largely prohibited from competing to generate electricity. Instead, the Commonwealth is tied into a regional grid operator called PJM Interconnection, which maintains policies across multiple states limiting utilities’ ability to build new power plants. These rules have the effect of shielding independent power producers from competition and giving them an artificial advantage in power generation. The result is a system that is far less competitive than advertised. Unsurprisingly, surging demand without adequate accompanying supply is resulting in retail electricity price increases of 15-25 percent  per year in PJM states.

Read the entire article HERE: Ross Marchand: Shapiro’s utility crackdown won’t fix Pennsylvania’s power shortage