Opinion: The importance of good energy policy

If you want to understand the real impact of Pennsylvania’s energy policies, don’t start in Harrisburg. Start on a job site. Look at the crews replacing aging pipelines in our communities. Talk to the electricians upgrading substations to handle new demand. Watch the apprentices learning skilled trades that will support their families for decades. These are the faces of Pennsylvania’s energy economy, and their livelihoods depend on getting energy policy right.

Pennsylvania’s regulated electric and natural gas utilities are the backbone of this effort. They serve nearly nine million homes and businesses, employ more than 15,000 workers earning family-sustaining wages and invest over $3 billion annually in infrastructure across the commonwealth.

Pennsylvania is facing a growing challenge: energy demand is rising rapidly due to new manufacturing, electrification and data center development, while supply is struggling to keep pace. Warning signs are already emerging, with recent capacity auctions highlighting just how tight supply has become. If we fail to act, the consequences will be significant. Reduced reliability, higher energy costs and lost economic opportunities will follow. For the contractors and workers we represent, that means fewer projects and fewer jobs.

Bad policy can make that outcome more likely. Proposals like state House Bill 2224, which would artificially cap a utility’s Return on Equity (ROE), will only threaten job opportunities. Attempts like this discourage infrastructure investment, delay permitting, or shift costs unpredictably onto utilities and ratepayers create uncertainty — and uncertainty is the enemy of long-term investment. On the other hand, smart, stable energy policy does exactly the opposite. It creates the conditions for sustained investment, supports workforce development and ensures that Pennsylvania remains competitive in attracting new industries.

Jon O’Brien
Executive Director
Keystone Contractors Association