President and CEO Andy Tubbs of the Energy Association of Pennsylvania (EAP), which represents the commonwealth’s electric and natural gas distribution utilities, today issued the following statement on Gov. Josh Shapiro’s 2026-27 budget address:
“Pennsylvania’s electric distribution companies (EDCs) provide safe, reliable and affordable energy to nearly 9 million Pennsylvania families and businesses. Utilities remain deeply committed to ensuring that all customers, including the most vulnerable, have access to essential energy services. Our member companies invest nearly $600 million annually into customer assistance programs and energy efficiency initiatives. We have some fundamental disagreements with the governor, but we stand ready to work with his administration, legislative leaders and all stakeholders on comprehensive solutions that maintain reliability, support Pennsylvania jobs, attract economic development and result in reasonable rates for all customers.
“As we consider affordability solutions, it’s essential to understand how our energy system works. The majority of a customer’s bill is costs that utilities do not control, including approximately 50% coming from generation supply costs alone. Pennsylvania’s electric utilities do not generate energy; they deliver it. While a utility bill includes both generation and distribution charges, utilities are only paid for delivering energy — not a cent more — and are subject to extensive review and approval by the Pennsylvania Public Utility Commission. All generation costs charged by power plant owners are simply passed through to customers with no markup or profit for the utility.
“The recent PJM auction results paint a stark picture: Pennsylvania families and businesses now face costs exceeding $16 billion annually, more than seven times the $2.2 billion in costs just three years ago. Most concerning, the December auction for the 2027-28 delivery year failed to procure enough power to meet its reliability target for the first time in PJM history. This represents a massive wealth transfer from Pennsylvania customers to out-of-state generation owners.
“EAP supports a comprehensive effort to address energy affordability for Pennsylvania customers and to protect the economic development role EDCs play in Pennsylvania. Our plan includes: protecting residential customers from retail shopping abuses that cost them more than $400 million in 2025; creating pathways for new in-state generation to meet growing demand; reinstating critical consumer protections for residential customers who pay their bills on time; establishing a state LIHEAP supplement to help vulnerable customers; reforming net-metering policies to stop cost-shifting to other ratepayers; and reviewing decades-old policy mandates to ensure cost-effectiveness.”
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About EAP
The Energy Association of Pennsylvania (EAP) is a trade association that represents and promotes the interests of regulated electric and natural gas distribution companies operating in Pennsylvania.
Contact: David La Torre, david@latorrecommunications.