Pennsylvania Leaders Can Act Now to Save Households $841 Per Year by 2030, New Analysis Finds

As residents across Pennsylvania and the country face skyrocketing electricity bills, a new independent analysis from Synapse Energy Economics finds that leaders can take immediate action that could save Pennsylvania households $841 per year by 2030. The modeling underscores that, due to data center power demand, PJM Interconnection’s grid mismanagement, and the rollback of federal clean energy investments, electric bills are on the rise. But Pennsylvania leaders can fight cost increases through targeted interventions while pursuing broader reforms. Read the full report here.

The report identifies three concrete steps Pennsylvania leaders can take to turn the tide on rising energy costs:

1. Require large data centers to supply their own clean, affordable power to avoid passing costs to households.
2. Tackle excess utility profits by lowering monopoly utilities’ guaranteed return on investment.
3. Building more clean energy through siting and interconnection reforms to clear PJM’s backlog.

The Synapse modeling evaluated the combined consumer impact of these three policy interventions that leaders in the commonwealth could enact to alleviate electricity price pressures. According to their findings, together, these actions would reduce household electricity costs by $197 in 2027 alone, and deliver an estimated $2.4 billion in total savings statewide by 2030.

“As Governor, I've been fighting to cut costs for Pennsylvanians and ensure we remain a national energy leader for years to come,” said Governor Josh Shapiro. “That’s why I sued PJM and secured a price cap that will save 67 million consumers $45 billion on their energy bills. It’s why I took on the utility companies and issued a call to reform their outdated model that has resulted in higher and higher prices for Pennsylvanians — and it’s why I created the Governor’s Responsible Industrial Development (GRID) standards to protect our communities and ensure data center developers deliver real benefits if they want the Commonwealth’s support. As this report shows, the actions I’ve taken are putting real money back in the pockets of Pennsylvanians and my Administration will continue to work with leaders at the PUC and in the General Assembly to keep costs down."

"This latest report from Synapse Energy Economics demonstrates what savings are possible by implementing smart and common-sense policies," said Rep. Elizabeth Fiedler, Chair of the House Energy Committee. "In the Energy Committee, we're working on and passing bills that would modernize our electric grid to work more efficiently, empower consumers to install distributed energy resources to help us meet peak demand, and hold utility companies and big tech accountable. As the report shows us, if we’re able to enact these policies, the average Pennsylvanian could save nearly $850 on their electric bills by 2030. And though the economy is changing pretty fast, I think $850 will still mean the world to working families in 4 years."

"The Synapse analysis makes the path forward undeniable. $841 in annual savings for Pennsylvania families and $2.4 billion back in people's pockets by 2030. That's not a wish list, simply put, that's a game plan. The legislature needs to take these findings and move Governor Shapiro's GRID principles into law," said Jackson Morris, Director, State Power Sector Policy for Climate & Energy at NRDC (Natural Resources Defense Council). "Pennsylvania must require data centers to bring their own clean power, rein in excess utility profits, and clear the backlog for new clean energy."

“Every family in Pennsylvania should be able to afford to keep the lights on. Right now, that’s slipping out of reach thanks to federal clean energy sabotage and PJM prioritizing its members' profits over fixing the grid,” said Evergreen Collaborative Regional Director for the Northeast and Mid-Atlantic Eric Miller. “It doesn’t have to be this way. With smart investments in homegrown clean energy, holding PJM and its member companies accountable for the broken, profit-driven system they profit from, and requiring Big Tech to bring their own clean energy for data centers, Pennsylvania can start cutting costs for families and end this corporate greed-fueled affordability crisis.”

“I am expressing my strong support for the reforms outlined here today and specifically the need to lower utility profits through reform of utility equity returns,” said Patrick Cicero, former Pennsylvania Consumer Advocate and Of Counsel at the Pennsylvania Utility Law Project. “Last year, more than 414,000 Pennsylvania families had their utility service disconnected because they could not afford to pay their bill. A large part of the reason why is inflated utility profits. The current system allows utilities to lock in excessive returns on equity — often in the range of 9 to 10 percent — that are baked into every customer's monthly bill. This costs Pennsylvania families millions of dollars each year. We can fix this problem, and I urge the General Assembly to swiftly pass HB 2224 which would directly lower electricity, gas, and water bills for Pennsylvania families by resetting inflated utility profit margins through a transparent, market-based competitive auction process. This ensures that the cost of equity is set by investors competing in an open market rather than by utility insiders arguing before regulators.” 

Pennsylvania faces a pivotal opportunity to deliver tangible relief to families while laying the groundwork for lasting reform. The policies outlined in this analysis are practical, near-term actions the Shapiro administration and lawmakers can take to lower household costs and strengthen the grid with clean, affordable, reliable energy. But they also form the foundation for deeper change to take on entrenched utility and corporate interests, restore accountability, and make affordability, fairness, and reliability the cornerstones of Pennsylvania’s energy system.

A fact sheet detailing these interventions and their benefits can be found here.

NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).