(The Center Square) – Higher supply prices and weather-driven swings in energy use contributed to high electric bills for many Pennsylvanians over the past year, prompting lawmakers and energy stakeholders to take a closer look at whether state policies and retail electric choice programs provide enough protection for residents.
The state’s electricity system is neither fully competitive nor fully regulated. That means customers can shop for an electric supplier, while the electric distribution companies handle infrastructure, maintenance, and delivery services. Those who do not choose a supplier receive “default service” from their utility.
Sparking debate in Harrisburg are proposals that would place more guardrails around the competitive market, and one that would allow a return to utility-owned generation.
According to RESA, the Retail Energy Supply Association, a U.S. Energy Information Administration study found the average power price for all customers in competitive states increased by 11.5% since 2008, compared to 43.6% for all customers living in monopoly utility states.
In real dollars, the study found that consumers in the 14 competitive states and jurisdictions saved an estimated $480 billion from 2008 through 2023 compared with the pricing trends in the monopoly states.
The Pennsylvania Public Utility Commission, or PUC, urges consumers to use the official PAPowerSwitch site to shop for competitive suppliers. As of January 2026, they say nearly 1.5 million Pennsylvanians have done so.
The biggest driver of monthly bills, said PUC Chairman Stephen DeFrank, is how much electricity is used.
“By planning now and paying closer attention to your daily usage, you can avoid surprises when your bill arrives,” he said.
He has also cautioned consumers to watch their contract expiration dates and renewal notices closely to avoid being rolled into a potentially more expensive variable-rate program.
Proposed legislation aims to safeguard consumers on contract issues.
House Bill 2183, introduced by Rep. Brian Munroe, D-Warminster, would require additional notification requirements.
Also, House Bill 2131, introduced by Rep. Heather Boyd, D-Clifton Heights, and its companion, Senate Bill 312, sponsored by Sen. John Kane, D-Chester, would return customers to their default service provider at the end of their contract term if they don’t actively renew.
All three bills have been referred to committee for further consideration. Beyond that, a broader argument is emerging over moving back toward utility-owned generation.
House Bill 1272, the “Power PA Act,” introduced by Rep. Perry Stambugh, R-New Bloomfield, proposes what he says is a moderate, state-focused approach that will provide Pennsylvania with the flexibility to work alongside the existing competitive power supply market to address energy shortfalls.
It would provide electric distribution companies an option to invest in – and potentially own – baseload and other generation resources. It would also require that any net revenue from selling that generation into PJM markets be passed on to customers.
Opponents, however, say it would mark a major retreat from the competitive market that has kept electricity prices close to the national average. In an op-ed, Rep. Robert Matzie, D-Ambridge, argued that allowing utilities back into generation would distort market signals and shift risk from investors to ratepayers.
The PUC has also recently voted to formally incorporate key consumer safeguards into its regulations. The proposal would largely fold expired Chapter 14 consumer protection rules into Chapter 56 of the Pennsylvania Code, covering payment arrangements, late-fee waivers, complaint procedures, disputed bill payments, and a ban on automatic surcharges for uncollectible expenses.
“This proposed rulemaking reflects the Commission’s responsibility to provide stability during a period of real uncertainty for many households,” DeFrank said. “By moving these longstanding consumer protections into regulation, we are creating a clear, predictable framework that helps keep essential utility service accessible and affordable, while also giving utilities the certainty they need to plan, operate, and serve customers effectively.”
Consumer protections are one part of a broader debate over what is driving high utility bills. As possible solutions are weighed, affordability is likely to remain at the forefront.
