Independent Fiscal Office Reports PA Electricity Prices Increased 46.1% From 2018 to 2025, More Than Other PJM States, Largely Due To Pennsylvania's Reliance On Natural Gas-Fired Electric Generation

On February 4, the Independent Fiscal Office released its latest Pennsylvania Electricity Update reporting electricity prices in the Commonwealth increased 46.1% from 2018 to 2025, largely due to Pennsylvania's reliance on natural gas-fired electric generation.

In contrast, electricity prices during the same period increased 40.1% in Ohio, 39.1% in Virginia and 41% for other PJM Interconnection states.

The IFO said, "Pennsylvania rates are more sensitive to natural gas prices than other states due to its high reliance on that fuel source for generation."

IFO noted "The national average spot price of natural gas increased by over 200% from 2020 to 2022." 

The IFO reported 59% of electricity generation in Pennsylvania is fueled by natural gas, 30% by nuclear, 7% by coal and 4% by renewables and other sources.

"The share of Pennsylvania generation from renewable sources (4.1%) remains low compared to the region, despite significant growth in solar generation. 

"In 2025, Pennsylvania solar generation (1.4% of total) increased by 63% from the prior year, and 280% from 2021."

The IFO also said the distribution costs of electricity in Pennsylvania is higher than other states.

"For Pennsylvania, the data show that the distribution other component grew by 27% from 2022 to 2025, notably stronger than the generate transmit component (+10%). 

Click Here to read the entire report.

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-- Reactions To Gov. Shapiro's Proposed Budget From Citizen, Environmental, Energy, Industry, Utility Groups  [PaEN] 

-- House Committee OKs Bill To Give PUC More Authority To Regulate A.I. Data Centers, Other Large Loads To Protect Ratepayers, Electric Grid  [PaEN]   

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NewsClips:

-- Scranton Times: Local Officials React To Shapiro’s Budget Address [Data Centers] [PDF of Article]

-- WHYY - Susan Phillips: Gov. Shapiro Wants More A.I. Data Centers, But They Need To Bring Their Own Power 

-- PA Capital-Star: PA’s Approach To Joining The A.I. Race  Must Put People First, Shapiro Said In Budget Address 

-- Pittsburgh Business Times: Gov. Shapiro Proposes New Standards Requiring Data Centers To Bring Their Own Power  [PDF of Article]

-- PennLive: Gov. Shapiro Lays Out 4 Principles To Steer How Big Tech Builds A.I. Data Centers In PA 

-- Inquirer: Gov. Shapiro Says He’ll Prevent A.I. Data Center Developers From ‘Saddling’ Pennsylvanians With Higher Energy Costs 

-- Inquirer - Frank Kummer: What Does PJM Have To Do With A.I. Data Centers And Why Is Gov. Shapiro Always So Made At It? 

-- PPL Utilities Statement On Gov. Shapiro’s Budget Address And Energy Affordability

-- E&ENews/Politico: A.I Champion Josh Shapiro Leans On Tech Industry To Bear Energy Costs Of A.I. Data Centers 

-- Pittsburgh Business Times: Gov. Shapiro Proposes $1 Billion Infrastructure Fund To Address PA’s Housing And Energy Needs [PDF of Article]

-- PA Capital-Star: Should A.I. Data Centers Pay Up Front Or Build Their Own Power Plants?  PJM, State Governors Have Different Ideas On How To Fix Your Electricity Bill 

-- Scranton Times Chris Kelly Opinion: A.I. Data Center Race A Marathon, Not A Sprint [PDF of Article]

-- Pittsburgh Business Times: $10 Billion A.I. Data Center Campus, Natural Gas Power Plant Proposed For Former Bruce Mansfield Power Plant Site In Beaver County  [Shippingport Boro Approved Jan. 28, Another Hearing To Be Set]  [PDF of Article] 

-- The Derrick: Clarion Borough Holds Public Hearing On A.I. Data Center Ordinance  [PDF of Article]

-- TribLive: Opponents Of Homer City 4.5 GW Natural Gas Power Plant, Data Center Campus Air Concerns At Community Gathering In Indiana County

-- NE PA Institute For Public Policy & Economic Development: Exploring The Dynamics Surrounding Data Centers In Northeastern Pennsylvania

-- Utility Dive: Coal-Fired Power Plant Owners Say US DOE ‘Emergency’ Order To Run Plants Constitutes An Unconstitutional Physical Taking And Regulatory Taking’ Of Their Property 

-- Wall Street Journal: Google Is Spending Big To Build A Lead In A.I. Energy Race By Buying Energy Companies  [PJM Highlighted] [PDF of Article]

-- Wall Street Journal: These Rural Americans Are Trying To Hold Back The Tide Of A.I. - Fears Of Rising Utility Costs, Job Losses, Privacy Violations  [PDF of Article]

[Posted: February 4, 2026]  PA Environment Digest