Wednesday, August 27, 2025

Independent Fiscal Office: Residential Electricity Bills ‘Begin Surge:’ Natural Gas Prices Up 71%, PJM Prices Up Due To A.I. Data Center Demand

On August 27, the
Independent Fiscal Office released a new Residential Electricity Bills Being Surge research brief.

The IFO said the three largest electric utilities in Pennsylvania just raised their price to compare for power use from 12.6% to 16% compared to earlier this year.

The new June to November PPL prices were up 16% from the December to May period and 24.4% from a year ago.

PECO prices for June to November were up 12.6% from March to May and 12.3% from a year ago.

Duquesne Light raised prices 14.6% from December to May and 11.1% from a year ago.

It is important to point out that utilities do not make a profit from the sale of power to its customers under the default plan; the cost is simply passed through for those who do not shop for the electricity supplier.

The IFO said there were three reasons for the increases--

-- Natural gas prices were up 71%* from January to June of the prior year;

-- Significantly higher PJM Interconnection capacity costs [driven by A.I. data center demand]; and

-- Higher compliance costs related to the Alternative Energy Portfolio Standards which increased 33% compared to 2023.

Click Here for the IFO report.

Resource Links:

-- PUC Urges Electricity Customers To Start Shopping, Conserve Energy To Help Avoid Impact Of June 1 Rate Increases Of Between 5% and 16% On Most Electric Bills  [PaEN]

-- Independent Fiscal Office Reports First Quarter PA Natural Gas Production Increased 2.9% Over 1st Quarter 2024; Price Of Natural Gas Increased 218% Over 1st Quarter 2024  [PaEN]

-- *Pennsylvania’s Electric Grid Is Dependent On One Fuel To Generate 59% Of Our Electricity  [PaEN]

NewsClips:

-- Inquirer: What PECO’s New CEO Has To Say About Your Electric Bill, A.I. Data Centers And Coal In PA  [A.I. Data Center Demand Could Cause PA To Be In A Generation Deficit, Price Increases]  [PDF of Article]

-- Bloomberg: Soaring Power Bills In PJM Pose Risk For Republicans In Face Of A.I. Data Center Demands 

-- Bloomberg Opinion: A.I. Is Booming, So Are Household Electricity Bills

-- Financial Times Opinion: Surging US Electricity Prices In Face Of A.I. Data Center Demands Put Presidents Pledge To Cut Electricity Prices In Half With 1 Year Of Taking Office 

-- Utility Dive: EIA Projects Record Residential, Commercial Natural Gas Consumption To Offset Decreases In Power Generation [Underappreciated Risks To Gas Use By A.I. Data Center Customers] 

-- S&P Global: Natural Gas Utilities In US Advance A.I. Data Center Deals As Power Bottlenecks Persist [PA Included] [PDF of Article

-- TribLive Guest Essay: NIMBYs Are Coming For The Data Centers A.I. Needs - Bloomberg Opinion

PA Oil & Gas Industry Public Notice Dashboard:

-- PA Oil & Gas Weekly Compliance Dashboard - August 16 to 22 - Conventional, Shale Gas Wastewater Spilling All Over, Seeping From Hillsides; 4th Pipeline Construction Spill; Where Did You Put That Waste?  [PaEN] 

      -- Conventional Oil & Gas Well Owners Pushing 3 More Ways To Legalize Road Dumping Their Wastewater; Not Clear How The Public, Put At Risk By Dumping, Will Be Involved  [PaEN] 

     -- DEP: Leatherwood LLC Issued Violations For Illegally Disposing Of 43,176 Gallons Of Conventional Gas Well Plugging Wastes At Coal Refuse Disposal Area In Greene County  [PaEN] 

     -- DEP: An Estimated 16,000 Gallons Of 'Black Goop' Spills From Closed Eureka Resources Oil & Gas Wastewater Treatment Plant In Williamsport, Reaching Susquehanna River  [PaEN] 

     -- DEP Issues Violations For Failing To Report How Waste Was Disposed Of Safely From 133 Conventional Oil & Gas Wells, Including 50 Owned By CNX Gas Company  [PaEN]

     -- DEP: 3rd & 4th Spills From Horizontal Drilling At EQM Gathering Pipeline Project In Washington County; Overflowing Tanks; Water Supply Complaint Investigated  [PaEN] 

    -- DEP: Contaminated Wastewater Found Seeping From Saturated Shale Gas Well Pad Fill Slope In Great Bend Twp., Susquehanna County  [PaEN] 

     -- DEP: Day 38 Of Cleanup: Borehole Found Under Stormwater Basin During Continuing Cleanup Of Repsol Shale Gas Well Pad After A 34-Hour Uncontrolled Wastewater Release In Bradford County  [PaEN]  

Related Article This Week:

-- Freeport Township Declares Disaster Emergency After Residents Impacted By A Gas Related Water Contamination Event Have Been Without Permanent Water Supplies For 3 Years-- We’re Not Blaming Anybody, We Just Want Good, Clean Drinking Water  [PaEN] 

-- DEP: Griffin Summit Oil Co. Violated Order To Plug Or Bring 53 Abandoned Conventional Oil & Gas Wells Into Compliance In Venango County; 420 Abandoned Conventional Well NOVs In 2025  [PaEN]

-- DEP Plugs 2 Conventional Gas Wells Abandoned By Their Owners And Venting Gas In Erie County  [PaEN]  

-- Independent Fiscal Office: Residential Electricity Bills ‘Begin Surge:’ Natural Gas Prices Up 71%, PJM  Prices Up Due To A.I. Data Center Demand  [PaEN]  

NewsClips:

-- Williamsport Sun: DEP Assesses Eureka Resources Oil & Gas Wastewater Spill In Williamsport, Orders Company To Take Corrective Measures [PDF of Article

-- The Center Square: Republican Rep. Ortitay Wants To Expand Natural Gas Drilling On State Land, Raise Other Revenue To Replace School Property Taxes

-- Utility Dive: EIA Projects Record Residential, Commercial Natural Gas Consumption To Offset Decreases In Power Generation [Underappreciated Risks To Gas Use By A.I. Data Center Customers] 

-- PUC Damage Prevention Committee Announces $254,875 In Penalties For PAOneCall Underground Utility Notification Violations

[Posted: August 27, 2025]  PA Environment Digest

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