Concerns are mounting in Pennsylvania as households and businesses face rising electric bills. With costs climbing and energy insecurity worsening, the Commonwealth must prioritize affordable and accessible electric utility service for all ratepayers. Path to Affordability examines how electric bills have changed over the past five- and twenty-year periods and identifies which components of the bill are driving the steepest increases.
The report shows that traditional rate structures are no longer keeping pace with evolving technologies, customer needs, or policy goals. As a result, customers lack the incentives and tools needed to manage usage, reduce peak demand, and keep bills stable. At the same time, Pennsylvania’s energy landscape is shifting. Advanced meters, flexible electric technologies, and distributed energy resources are creating new opportunities to modernize rates and deploy demand response programs that reflect the true costs of operating the grid.
To address these challenges, the report outlines how Pennsylvania can:
- Modernize rate design so prices better align with the cost of serving customers
- Strengthen grid planning to anticipate future needs and manage long‑term costs
- Limit the impact of data centers on customer bills
- Expand energy efficiency investments to reduce demand and improve affordability
- Deploy virtual power plants to provide flexible, cost‑effective grid support
- Advance PJM market reforms that reduce volatility and protect ratepayers
Drawing on emerging practices across the region — including time‑of‑use rates, peak‑time rebates, and seasonal rate structures — the report demonstrates how smarter rate design can be paired with customer education, protections for vulnerable households, and policies that prioritize affordability. Together, these strategies can optimize grid use, minimize system costs, and support Pennsylvania’s long‑term energy and climate goals.
With energy costs continuing to rise, the Commonwealth has a critical opportunity to chart a path toward affordable, reliable, and equitable electric service for all Pennsylvanians.
