Energy choice works for Pennsylvanians – don’t let a new House bill take it away

For 30 years, Pennsylvanians have been able to choose the energy supplier that best fits their needs, whether that means a plan with stable pricing, clean energy options, or something that works for their household or business. Today, however, some legislators are threatening to undermine your ability to keep your preferred supplier through House Bill 2131.

I was proud to have been part of that original policy implementation as a member of the Pennsylvania Public Utility Commission. And it’s why I’m terribly concerned today about proposed legislation in Harrisburg that would make it more difficult to maintain choice for millions of Pennsylvania consumers.

In the 1990s, Pennsylvania, like many other states, faced an energy crisis with electric supply shortages, rolling blackouts, and skyrocketing rates. At the time, the commonwealth permitted monopoly control of the electric utility market. We all paid a stiff price for that.

Local utilities were investing heavily in new electric generation for captive ratepayers. At that time, electric rates were 15% higher than the national average, with residential electricity prices in Philadelphia and Pittsburgh among the 10 highest in the country.

To address these issues, legislators and then-Gov. Tom Ridge took a bold step forward and, in 1996, passed the Electricity Generation Customer Choice and Competition Act, which opened the market to competition and required utility companies to compete in the generation and sale of electricity to continue operating that portion of their business.

This legislative action delivered on all the original goals to address costs, reliability and new investments in generation. The last rolling blackout in Pennsylvania occurred in 1994 – two years before the market restructuring. Perhaps more importantly for everyday Pennsylvanians, customers have been receiving significant cost-saving benefits. 

In 2024, residents saved an average of 46% on electricity compared to inflation-adjusted 1996 prices. In what other scenario are any of us paying less today than we did 30 years ago? So, it demonstrates the long-term benefits of competition.

But while Pennsylvania continues to operate a robust electricity market – with more than 150 unique companies that build and/or own electricity-generation assets, along with 450 electricity retail suppliers and brokers licensed in the state to sell electricity – an effort is underway to reverse these historic gains.

House Bill 2131, now under consideration, would make it more difficult to maintain energy choice by forcing customers off their current electricity plans at the end of a contract and back onto default utility service as captive ratepayers – even if they are saving money and satisfied with their provider. That would be a huge problem, as the distribution and transmission of electricity have been driving prices higher, not generation. 

Right now in Pennsylvania, you’re free to stick with your preferred energy supplier without having to renew your plan. But HB 2131 would take away your energy-choice convenience, forcing consumers onto a utility’s volatile standard offer. 

This proposed legislation does not just impact families, but also small businesses that rely on fixed-rate energy contracts for cost certainty and stability. Changes like these would create unnecessary disruption and higher long-term costs. 

There are better ways to protect consumers without adding regulatory burdens, including approaches that maintain competitive options while ensuring transparency and fairness. 

By keeping electricity markets fully open to competition, we can continue to reduce costs for consumers, improve reliability by allowing the utility to focus on electricity delivery, encourage new investments in generation, and promote innovation. 

The bottom line is this: Choice works and is absolutely vital for all Pennsylvanians. With 30 years of experience now under our belt, we know that competition fosters a more dynamic and responsive market that ultimately benefits and protects Pennsylvania consumers.