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Electric bills in Pennsylvania are expected to rise significantly, with an average increase of $170, according to the Joint Economic Committee. This increase is part of a broader trend affecting 47 states, where electricity bills have risen by an average of $100 this year. The rise in Pennsylvania represents just under a 10% increase in costs.
Several factors contribute to these rising costs. The Pennsylvania utility board approved price hikes in December 2024, which have resulted in some areas seeing jumps of 30% or more. City Power and Gas reports that infrastructure issues, such as an aging power grid built post-World War II, are a significant factor. The grid struggles to meet modern demands, especially with increased usage from data centers, electric vehicles, and extreme weather.
Additionally, the PJM Interconnection, which manages the electricity grid for Pennsylvania and 12 other states, has seen capacity costs rise by 833% for the 2025-2026 period. This increase is due to a lack of energy supply amidst growing demand. Pennsylvania Governor Josh Shapiro and other officials have filed a lawsuit with federal energy regulators, arguing that the auction process for capacity costs was flawed. ElectricityPlans.com notes that while capacity costs are a small percentage of the bill, they contribute to an overall increase of 10-20% for the average home.
The impact of these rising costs is felt most acutely by low-income families, who already spend a significant portion of their income on electricity. Efforts are underway to address these challenges, including advocacy for better consumer protection and grid modernization. Residents are encouraged to explore competitive rate options, energy efficiency solutions, and renewable energy plans to manage their electricity costs.