The Pennsylvania Energy Cost Crisis

By Rep. Martina White

Pennsylvanians are continuing to feel the impact of soaring electricity prices due to Governor Shapiro’s destructive energy taxes. If the surge in electricity bills after this winter’s prolonged cold snap was alarming, Pennsylvania families should brace themselves for the steep rate hikes coming later this year.

The latest capacity auction conducted by PJM Interconnection— the entity responsible for ensuring the distribution of electricity across thirteen states including Pennsylvania—saw electricity costs surge by an astonishing 700 percent compared to the previous year. This spike translates into a ten to twenty percent increase in residential electric bills, with even steeper cost burdens on Pennsylvania-based manufacturers and other energy intensive industries.

Our industries face tough choices: pass rising costs onto consumers, scale back operations, or relocate to states with more competitive policies. Pennsylvania families cannot afford relentless price hikes, especially while enduring the hardship of record inflation over the past four years. The Shapiro energy tax is an obstacle to economic growth, affordability, and long-term prosperity.

Perhaps the most frustrating aspect of this issue is its uncomplicated solution. At PJM’s 2024 annual meeting, PJM President and CEO Manu Asthana put it plainly: “We need capacity – a lot of capacity.” The most dependable way to ensure that capacity — and maintain a reliable and secure supply of electricity — is through natural gas-fired power plants. These facilities can ramp up quickly to meet demand, operate regardless of weather conditions, and provide critical baseload and peaking power using the natural gas resources under our feet.

Instead, Shapiro has doubled down on destructive energy taxes. Right now, The Shapiro Administration is appealing a Commonwealth Court decision to keep in place an unconstitutional $800 million energy tax scheme, known as the Regional Greenhouse Gas Initiative (RGGI), while simultaneously pitching his own, new, energy tax proposal known as the PACER program.

In the time it takes to read this editorial, Governor Shapiro could withdraw the appeal and put an end to any new PA energy taxes. Instead, he chose to sue PJM, deflecting blame for a crisis his own policies are fueling—while simultaneously trying to take credit for a so-called solution through a settlement.

Every dollar this settlement allegedly “saves” is taken directly from the pockets of Pennsylvania families. Instead of benefiting Pennsylvanians, this agreement primarily helps neighboring states like Maryland and Virginia keep their rates lower—at our expense. Political gimmicks and blame-shifting fool no one, especially not the hardworking residents left to foot the bill each month.

If Governor Shapiro were truly committed to solving the growing energy cost crisis, he would abandon these harmful energy tax schemes immediately and prioritize policies that encourage power generation and investment. Instead, he has pushed energy tax policies that cater to radical progressives across the country, negotiated settlements to the benefit of other states, and delivered nothing but higher energy bills for the very people he is supposed to represent. Pennsylvanians, quite literally, cannot afford for this to continue.

This originally appeared on Broad+ Liberty on April 3, 2025.

Rep. Martina White is a State Representative from Philadelphia.

The views expressed here are those of the author and not necessarily those of The Susquehanna Valley Center for Public Policy.

Nothing contained here should be considered an attempt to aid or hinder the passage of any legislation.