We are facing a looming energy crisis with rising demand for electricity and retiring power plants in the PJM market. By 2030, PJM expects at least 40 GW of dispatchable generation resources within its footprint to retire. An additional 70 GW could retire by 2035. These retiring plants provide baseload power on demand and ensure our energy security. At the same time, Pennsylvania is experiencing massive growth in electricity demand, driven by factors like new data centers and electrification. Without action now, we face potential power shortages, and electric service will become both less reliable and more expensive.

Pennsylvania’s decades old energy policies need to be updated to address potential energy shortfalls and provide the state with additional tools to help insulate customers from growing price volatility and reliability concerns. The PJM market option is the only option currently available and the system is no longer working as designed to lower costs for customers by encouraging competition. My legislation proposes a moderate, state-focused approach that will provide Pennsylvania with the flexibility to work alongside the market to address energy shortfalls and protect customers from unreasonable price volatility and reliability concerns. These solutions include: 1) Investment Flexibility for Electric Distribution Companies (EDCs): allowing EDCs to invest in and potentially own generation as one solution to address anticipated supply shortfalls and reduce price volatility; and 2) Pass Through Net Revenue: ensuring that any net revenue obtained by EDCs submitting its generation in PJM markets is passed through to customers.  In addition, allowing EDC investment in generation would guarantee the new generation investments in Pennsylvania, further benefiting the state. 

The resource adequacy crisis is real, and Pennsylvania must take control of its energy future now. This legislation is a balanced approach that complements the competitive market by addressing resource adequacy gaps, rather than relying solely on market forces to deliver a solution. 

Please join me in sponsoring legislation to ensure that Pennsylvania continues to have the reliable, affordable, energy needed for economic growth, job creation and community prosperity while driving change that will protect customers, businesses, and communities for future generations.