Pennsylvania, thanks to the Marcellus Shale formation and fracking, has become a net exporter of electricity. Despite having abundant natural gas and modern power infrastructure, residents are experiencing rising electricity costs.
• Electricity prices in Pennsylvania have increased by 45% over the past five years, slightly below the national average of 46%. This is concerning, especially since neighboring states that import electricity from Pennsylvania have lower price increases.
• Virginia, which imports electricity from Pennsylvania and hosts numerous data centers, has seen its electricity rates rise at half the rate of Pennsylvania's.
• Pennsylvania produces more electricity than it uses, yet locals face climbing electric bills, creating a situation akin to a bakery owner paying more for bread.
• The rise in electricity prices is not due to a shortage of energy but rather issues within the regulatory and transmission frameworks, as well as inflated costs from capacity auctions. A gap between the cost of generating and delivering electricity has emerged, with the delivery costs increasing significantly.
• Voter concern over electric bills is high, and energy-related issues are becoming prominent ahead of upcoming elections. A bipartisan bill aims to tackle the issue of double-counting data center projects that may be inflating prices.
• While some reform proposals seek to expedite electric generation projects, there is significant pushback against measures perceived as bypassing local authority.
To restore trust and affordability in Pennsylvania’s electricity market, policymakers must focus on simplifying regulations and reducing costs. Given the state's resources, it should be possible to ensure affordable power for its residents while maintaining its role as an electricity hub for the East Coast.
https://realclearwire.com/articles/2025/10/10/pennsylvanias_power_paradox_1140256.html
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