Hearing concerned with energy costs
Some senior citizens this winter had to decide whether to turn down the thermostat or pay for medication.
This sad reality check on the state of Pennsylvania’s energy costs and productivity was among the discussion topics at a recent state House GOP Energy Policy Committee hearing titled “Stopping New Energy Taxes” hosted by state Rep. Jamie Flick, R-South Williamsport.
The hearing at the Pennsylvania College of Technology included testimony from state Sen. Gene Yaw, R-Loyalsock Township; Pennsylvania College of Technology President Dr. Michael Reed (discussing the college’s role in providing the next generation workforce in the energy sector such as welding, diesel mechanics and power generation education), and some words of concern expressed by energy policy experts such as Joe Delmar, director, governmental affairs, Cogentrix Energy, LLC; and Rod Williamson, executive director, Industrial Energy Consumers of Pennsylvania.
The average ratepayer in the Commonwealth spends $3,100 a year on energy, said Committee Chair David Rowe, R-East Buffalo Township.
Gov. Josh Shapiro’s 2025-26 budget proposal calls for lawmakers to create tax credits for facilities that add reliable energy to the grid, regional hydrogen projects, and sustainable aviation fuel manufacturers.
Shapiro also is looking at other states that have put new policies in place to protect and create energy jobs, spur innovation, attract investment in data centers and EVs and do it in ways to protect public health. He is calling for a revision of the state’s energy portfolio – including incentivizing innovation in nuclear energy and renewable power.
“Our ratepayers are paying the 18th most expensive rates in the country,” Rowe said. “That does not make sense, and it is why we are having these hearings: To identify sensible energy policy that makes energy affordable and reliable for all Pennsylvanians and encourages investment in our commonwealth.”
Yaw, majority chair of the Senate Environmental Resources and Energy Committee, said the governor’s multilayered energy portfolio that focuses on green renewables does not address the energy capacity needed and shared to him by the folks at PJM, the grid serving 13 states and the District of Columbia. This is providing electricity to 65 million Americans, he said.
An energy powerhouse, Pennsylvania is “the engine that drives this whole region,” Yaw said. Yet, the taxes favored by Shapiro, such as those in the Regional Greenhouse Gas Initiative (RGGI), which Yaw is trying to repeal in the Senate Bill 168, would not leverage Pennsylvania energy. Instead, RGGI, a multi-state cap-and-trade program that imposes a carbon tax on power generators, would create instability and uncertainty which, for any industry, is the “pariah” – a term used by Yaw.
“A well-functioning competitive market is critical to keeping prices down and to allow for consumer choice,” Delmar said. “Forcing changes to the competitive market under the banner of consumer protection can further undermine electricity markets, thereby raising consumer costs and threatening resource adequacy.”
“A lot of these other intermittent energy sources being brought to market are not dispatchable,” Williamson said, echoing Yaw’s core issue of the Commonwealth needing to develop more baseload power generation. “The problem is the state needs more energy capacity and unless we are addressing it we are in the wrong place,” Yaw said.
“As Pennsylvania families and residents deal with financial pressures daily, it’s important to have in-depth conversations on how we can improve energy affordability in the Commonwealth,” Flick said. He recalled when growing up the monthly electric bill was $12 if that.
“I’ve learned a great deal of what it’s going to take for us to be successful in this mission,” Flick said
“I’m grateful for everyone who participated in this worthwhile discussion, and I look forward to acting quickly with my colleagues on both sides of the aisle.”