We share the concern in your editorial “Rising electric bills leave Pennsylvanians powerless” (May 6, TribLive) about families and businesses having access to affordable electricity, but utilities do not have wide latitude to increase customer bills. Utilities only control part of the bill their customers receive.
Regulated utilities are paid for the distribution of energy, which is less than 50% of a customer’s electric bill. The larger portion goes to competitive generation companies. A portion of those generation costs, capacity payments that guarantee power availability, have surged from $2.2 billion to more than $16 billion annually in just three years. These increases pass directly to customers; utilities do not make a dollar from them.
The distribution portion of bills, what utilities control, can only change after a rigorous 9-month public proceeding before the PA Public Utility Commission where consumer and small business advocates, commission staff, and stakeholders scrutinize every cost. Utility earnings from distribution are then invested back into Pennsylvania’s infrastructure, billions each year, to provide safe and reliable service.
Affordability matters. Utilities invest nearly $600 million annually to help vulnerable customers pay their bills and advocate for policies that protect residential customers from high costs charged by non-utility marketers, while opposing policies that shift costs onto our customers.
Utilities proudly meet their obligation to serve. But understanding what actually drives the monthly bill is essential if we want real solutions.
Andy Tubbs
Harrisburg
The writer is president and CEO of the Energy Association of Pennsylvania.