As Pennsylvania families continue to grapple with rising electricity bills, many are left wondering: If natural gas prices are low and generation costs are stable, why are our bills still climbing?

The answer lies not in the power plants, but in the growing pile of non-generation costs and state-mandated energy policies that are quietly inflating your monthly charges.

Let’s start with the good news: the cost to generate electricity in Pennsylvania has remained relatively stable over the past decade. In fact, when adjusted for inflation, generation costs have actually declined by 16% since 2011. This is largely thanks to the state’s abundant natural gas resources, which have kept wholesale electricity prices in check.

But that’s where the good news ends.

According to data from the Pennsylvania Public Utility Commission (PUC), the portion of your electric bill that isn’t tied to generation; things like transmission, distribution, smart meters, and various taxes and fees, has surged by 25% since 2011, even after adjusting for inflation. These non-generation costs now make up a growing share of your monthly bill, and there’s little transparency or accountability for how these funds are being spent.

Layered on top of these rising infrastructure and administrative costs are the financial burdens imposed by the Alternative Energy Portfolio Standards (AEPS) Act. This state law requires utilities to purchase a certain percentage of electricity from renewable and alternative sources like wind, solar and hydropower.

While the goal of promoting cleaner energy is laudable, the reality is that these sources are significantly more expensive than traditional baseload power. And who pays the difference? You do.

Since 2018, the cost of complying with AEPS mandates has skyrocketed by more than 600%. These costs are embedded in the generation portion of your bill, masking the true impact of the policy. So even though generation costs from traditional sources have remained flat or declined, your bill keeps rising, thanks in large part to these hidden compliance charges.

The current structure of electricity billing in Pennsylvania is increasingly out of step with the economic realities facing consumers. While utilities and policymakers tout investments in grid modernization and clean energy, the financial burden is being disproportionately shifted onto ratepayers, many of whom are already struggling to make ends meet.

Worse still, the six-month adjustment cycle for generation rates can lead to sudden, sharp increases in bills, even when underlying costs haven’t changed significantly. This lack of gradualism adds volatility and uncertainty for consumers trying to budget their household expenses.

Pennsylvanians deserve a fairer, more transparent system; one that prioritizes affordability alongside reliability and sustainability. Here are a few steps policymakers should consider:

• Audit and cap non-generation cost increases to ensure utilities are not overcharging for infrastructure and administrative expenses.
• Reform AEPS mandates to balance environmental goals with economic realities, possibly by introducing cost caps or alternative compliance mechanisms.
• Increase transparency in billing so consumers can clearly see where their money is going — and why.
• Encourage competitive markets that allow consumers to shop for better rates and hold suppliers accountable. PA Power Switch is a step in the right direction, but we as lawmakers can do more to encourage more competitive markets.

Electricity is a basic necessity, not a luxury. While investments in infrastructure and clean energy are important, they must not come at the expense of affordability and fairness. As non-generation costs and policy-driven charges continue to rise, it’s time for a serious conversation about who’s really footing the bill and whether the system is working for the people it’s supposed to serve.

(State Rep. Mike Armanini, R-Clearfield/Elk, represents the 75th Legislative District.)