Because of data center power demands, PJM Interconnection’s grid mismanagement, and the rollback of federal clean energy investments, electric bills are on the rise.
The report identifies three concrete steps Pennsylvania leaders can take to turn the tide on rising energy costs:
-- Require large data centers to supply their own clean, affordable power to avoid passing costs to households.
-- Tackle excess utility profits by lowering monopoly utilities’ guaranteed return on investment.
-- Building more clean energy through siting and interconnection reforms to clear PJM’s backlog.
These actions would reduce household electricity costs by $197 in 2027 alone, and deliver an estimated $2.4 billion in total savings statewide by 2030.
“As Governor, I've been fighting to cut costs for Pennsylvanians and ensure we remain a national energy leader for years to come,” said Gov. Josh Shapiro. “That’s why I sued PJM and secured a price cap that will save 67 million consumers $45 billion on their energy bills.
“It’s why I took on the utility companies and issued a call to reform their outdated model that has resulted in higher and higher prices for Pennsylvanians-- and it’s why I created the Governor’s Responsible Industrial Development (GRID) standards to protect our communities and ensure data center developers deliver real benefits if they want the Commonwealth’s support.
“As this report shows, the actions I’ve taken are putting real money back in the pockets of Pennsylvanians and my Administration will continue to work with leaders at the PUC and in the General Assembly to keep costs down."
"This latest report from Synapse Energy Economics demonstrates what savings are possible by implementing smart and common-sense policies," said Rep. Elizabeth Fiedler, Majority Chair of the House Energy Committee.
"In the Energy Committee, we're working on and passing bills that would modernize our electric grid to work more efficiently, empower consumers to install distributed energy resources to help us meet peak demand, and hold utility companies and big tech accountable.
“As the report shows us, if we’re able to enact these policies, the average Pennsylvanian could save nearly $850 on their electric bills by 2030. And though the economy is changing pretty fast, I think $850 will still mean the world to working families in 4 years."
"The Synapse analysis makes the path forward undeniable. $841 in annual savings for Pennsylvania families and $2.4 billion back in people's pockets by 2030,” said Jackson Morris, Director, State Power Sector Policy for Climate & Energy at NRDC. “That's not a wish list, simply put, that's a game plan.
“The legislature needs to take these findings and move Governor Shapiro's GRID principles into law. Pennsylvania must require data centers to bring their own clean power, rein in excess utility profits, and clear the backlog for new clean energy."
“Every family in Pennsylvania should be able to afford to keep the lights on. Right now, that’s slipping out of reach thanks to federal clean energy sabotage and PJM prioritizing its members' profits over fixing the grid,” said Evergreen Collaborative Regional Director for the Northeast and Mid-Atlantic Eric Miller.
“It doesn’t have to be this way. With smart investments in homegrown clean energy, holding PJM and its member companies accountable for the broken, profit-driven system they profit from, and requiring Big Tech to bring their own clean energy for data centers, Pennsylvania can start cutting costs for families and end this corporate greed-fueled affordability crisis.”
“I am expressing my strong support for the reforms outlined here today and specifically the need to lower utility profits through reform of utility equity returns,” said Patrick Cicero, former PA Consumer Advocate and Of Counsel at the Pennsylvania Utility Law Project.
“Last year, more than 414,000 Pennsylvania families had their utility service disconnected because they could not afford to pay their bill. A large part of the reason why is inflated utility profits.
“The current system allows utilities to lock in excessive returns on equity-- often in the range of 9 to 10 percent-- that are baked into every customer's monthly bill. This costs Pennsylvania families millions of dollars each year.
“We can fix this problem, and I urge the General Assembly to swiftly pass House Bill 2224 which would directly lower electricity, gas, and water bills for Pennsylvania families by resetting inflated utility profit margins through a transparent, market-based competitive auction process. [Read more here]
“This ensures that the cost of equity is set by investors competing in an open market rather than by utility insiders arguing before regulators.”
Pivotal Opportunity
Pennsylvania faces a pivotal opportunity to deliver tangible relief to families while laying the groundwork for lasting reform.
The policies outlined in this analysis are practical, near-term actions the Shapiro administration and lawmakers can take to lower household costs and strengthen the grid with clean, affordable, reliable energy.
But they also form the foundation for deeper change to take on entrenched utility and corporate interests, restore accountability, and make affordability, fairness, and reliability the cornerstones of Pennsylvania’s energy system.
Click Here for a copy of the report.
Related Articles This Week:
-- New Study Finds If Pennsylvania Leaders Act Now They Could Save Households $841 Per Year In Energy Costs By 2030 [PaEN]
-- PUC Releases Summer Readiness Overview Reports By PA Electric Utilities [PaEN]
-- PJM Interconnection Issues 3rd Hot Weather Alert For June 11-12 In Mid-Atlantic, Southern Regions [PaEN]
NewsClips:
-- The Allegheny Front: Gov. Shapiro Courted New A.I. Data Centers, Then Public Opinion Shifted
-- PennLive - Charles Thompson: Republican Candidate For Governor Garrity Breaks With Shapiro As She Calls For Pause In A.I. Data Center Development
-- PA Capital-Star: Congressional Legislation Would Make President’s A.I. Data Center Principles Gov. Shapiro, Other PJM Governors Supported Into Law
[Posted: June 10, 2026] PA Environment Digest
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