Energy is at the forefront of policy discussions nationwide, and Pennsylvania is no exception. Lawmakers are tasked with crafting policies that balance an increasing number of factors. Advances in technology, evolving customer trends and a growing emphasis on sustainability and environmental responsibility are just a few of the factors shaping energy policy.
The private sector’s commitment to environmental stewardship is evident in the fact that companies across Pennsylvania continue to focus acutely on environmental, social and governance criteria. This focus is not new for Pennsylvania companies, particularly given the environmental progress we’ve made thanks to natural gas production in our state.
The use of more natural gas, combined with the industry’s innovations in technology and commitment to environmental responsibility, has resulted in a 40% reduction in emissions from power generation since 2005. At the same time, Pennsylvania electricity ratepayers have seen a 41% reduction in wholesale electric prices since 2008.
Allowing the market to work means all risk falls on private investment, rather than on captive ratepayers of utilities.
Another major factor that has benefited Pennsylvania consumers is our competitive electricity market. In 1996, Pennsylvania lawmakers enacted the Electricity Generation and Customer Choice and Competition Act. This created a competitive market in which consumers can choose their electricity supplier. Pennsylvania’s electricity prices are consistently below the national average as a result. Beyond the price benefits, consumers have abundant choice today. For example, customers who wish to purchase a 100% renewable energy product have the power to do that in the market, thanks to competition.
The companies that participate in the market have every incentive to make smart investments that reflect what customers want, and they will continue to do so. The private market is already working to accomplish policy goals, as evidenced by the Wolf administration’s recent announcement to power nearly half of the government’s electricity needs by 2023 through new solar projects — made possible through our competitive market.
With the requirements under Pennsylvania’s Alternative Energy Portfolio Standards Act maxing out this year, there’s no shortage of legislative proposals to address renewable energy policy. Pennsylvania’s commitment to competition and private investment should be preserved as policymakers are actively considering the path forward to renewable deployment and electric vehicle infrastructure.
The choice is clear: allow the competitive market to continue working to the benefit of consumers, or take steps backward and allow electric utilities back into generation. Allowing the market to work means all risk falls on private investment, rather than on captive ratepayers of utilities. There is no need to burden ratepayers with the cost of building solar facilities or electric vehicle charging stations when private companies can make, and already have made, these investments.
Reaffirming Pennsylvania’s commitment to competition and private investment will also be important as the energy economy evolves to incorporate technologies such as battery storage, carbon capture and storage, hydrogen, renewable natural gas or any of the myriad other technologies being discussed and advanced every day. Environmental stewardship and private industry are not mutually exclusive. We already have that structure in Pennsylvania. It’s time to put it to work.
