HARRISBURG, PA — Pennsylvania lawmakers have introduced legislation that would require utilities to join regional power coordination networks while eliminating financial bonuses that are currently passed on to customers through electric bills.
What This Means for You
- Utilities could be required to join multi-state power grids that improve efficiency and reliability
- A customer-funded bonus paid to utility shareholders would be eliminated
- The proposal aims to reduce costs for households facing rising energy bills
State Reps. Chris Pielli, D-Chester, and Elizabeth Fiedler, D-Phila., introduced the bill this week as part of an effort to address rising electricity costs and utility profits.
Under current law, investor-owned utilities receive a financial incentive for joining a regional transmission organization — a multi-state network that coordinates electricity distribution to improve grid reliability and efficiency.
That incentive is funded through customer electricity bills and paid to utility shareholders.
What the Bill Would Change
The proposed legislation would require utilities to participate in a regional transmission organization and eliminate the additional incentive payment.
Regional transmission organizations manage the flow of electricity across large geographic areas, helping balance supply and demand while maintaining system stability.
Lawmakers said the incentive was originally created to encourage utilities to join these systems but is no longer necessary.
Lawmakers Cite Rising Costs
“At a time when utility shareholders are earning record profits and households continue to face rising costs, we need to work to find solutions to restore balance by tipping the scales back into the favor of Pennsylvania families,” Pielli said.
Fiedler said rising energy costs are placing additional strain on households.
“We need energy to live, to keep our homes running, to stay cool in the summer – and when families can’t afford their energy bills, it means we need to restore balance to a broken system,” she said. “This is a commonsense solution that will lighten the load on regular ratepayers who are already shouldering costs that are far too high.”
Next Steps
The bill has been introduced but has not yet been assigned a bill number or referred to a legislative committee for consideration.
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