Pielli Bill Targets Utility Incentives as Power Costs Rise

Electricity post
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HARRISBURG, PA — Pennsylvania legislation that would require investor-owned electric utilities to participate in a regional transmission organization while eliminating financial incentives for doing so advanced from the state House Energy Committee Wednesday, moving a proposed change to utility compensation to the full House.

House Bill 2755, sponsored by state Rep. Chris Pielli, D-Chester, would make participation in a regional transmission organization mandatory for investor-owned utilities. Those organizations coordinate electricity transmission across multiple states to support grid efficiency and reliability.

The proposal would also eliminate an existing financial incentive for regional transmission organization membership. Under current law, according to Pielli and state Rep. Elizabeth Fiedler, D-Philadelphia, customers fund the incentive through electricity bills, with the additional revenue going to utility shareholders.

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Pielli and Fiedler argue that requiring participation removes the justification for continuing to provide utilities with an additional financial inducement.

“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 in favor of Pennsylvania families,” Pielli said.

Fiedler framed the measure as a way to reduce costs borne by ratepayers as household energy expenses rise.

“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,” Fiedler said.

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The House Energy Committee considered H.B. 2755 during its Sept. 30 voting meeting. The legislation had been referred to the committee earlier in September and has not passed either chamber.

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