Reform Bill Could Reign in Utility Rates
Finding the cheapest electric rates has become more important than ever. In PA, PPL alone has seen a 66% increase in PTC rates since 2020. With price to compare rates rising again this summer, people simply can’t afford their electricity bills. However, lawmakers may have hit on a solution, in the form of a utility reform bill.
HB 2224 would cap utility profits and end $1.7B in taxes that utilities pass on to customers. Theoretically, this would lower electricity rates. But some say this wouldn’t provide long-term relief from high electric bills. So, let’s look at what we know about this bill. And, we’ll also see how you can find cheap electricity.
PA Facing Energy Crisis
This bill is a response to the rising energy costs in PA. For years, the PJM interconnection has been retiring generators faster than it replaces them. In 2024, tight supply combined with rising data center demand sent capacity auction prices jumping.
As a result of higher repair costs and shareholder demands, PA utilities are asking for more rate hikes. In PA, public utilities are allowed by the state to charge customers to pay for their grid upgrades. These costs are part of your distribution charges on your bill. So even if you shopped for the best energy supplier, utilities pass these costs on to you.
Unfortunately, the rising rates are making it hard for 1 in 4 PA customers to pay their bill. In 2025, over 387,000 PA households had their utilities shut off. Since that’s a new record high, some lawmakers believe the state is in an affordability crisis.
PA House Votes to Cap Profits and Cut Taxes
In a rare move, PA House lawmakers voted unanimously in favor of the utility reform bill. This bill fixes the code to cap utility profits. It also cuts the state’s nearly 6% gross receipts tax on electricity and requires utilities to pass those savings on to customers.
Utility Reform Bill Faces PA Senate Challenges
Despite support in the PA House, the bill could face some major challenges in the senate. Lawmakers on both sides share frustrations about rising electricity prices. But they heavily disagree on solutions. And it makes lowering electricity bills a problem.
House republicans argued that capping profits goes against free market values. However, they voted to pass the bill when it included the tax cut. In the senate, republicans continue to argue that more regulation will slow down investors. This, they say, will lead to even few power plants in the state and cause costs to rise higher.
This year also marks PA’s fifth straight late budget. And while the reform bill’s tax cut for electricity could help consumers, the state would lose an entire revenue stream.
Keep Your PA Electricity Rate Low
We’re waiting to see if the bill passes in the senate. So what can you do in the meantime to keep your bill low? The easiest solution is to shop for an affordable fixed rate plan at https://www.paenergyratings.com.