“All of the Above” is a familiar phrase in energy debates. It means we must be open to using all energy sources to respond to increasing energy demand, collaboratively engage with stakeholders, and seek all ideas to drive innovation and maintain affordability.
For Pennsylvania, “All of the Above” must be more than a slogan. It has to be a commitment to every resource, stakeholder and idea that can secure the commonwealth’s long-term energy security.
The challenge is immediate.
Across Pennsylvania, demand from advanced manufacturing, data centers and new investments into emerging technologies is outpacing the rate at which new dispatchable generation (power plants that can be turned on and off as needed) is coming online. The threat of baseload generation retirements persists (power plants that run day or night, rain or shine) due to age and government policies.
Pennsylvania households and businesses are already paying substantially more for virtually the same amount of capacity (how much energy we could use) available two years ago. While the system is stressed, proposed power plants have been approved but not built, which shows that paying higher prices for power does not guarantee new generation being built.
Outside competition from other states is also a growing concern. Unlike Pennsylvania, surrounding states have streamlined local permitting and siting to build infrastructure faster. Every employer that chooses another state represents lost jobs, tax revenue and opportunity for Pennsylvania. Failure to act will leave us vulnerable to persistent, structural energy cost increases, lost jobs and tax revenue, and severe reliability challenges. That means Pennsylvania could experience potential brownouts and blackouts, which would disrupt our everyday lives.
Pennsylvania’s electric utilities have the privilege and legal obligation to serve every customer. They don’t own generation, but when the lights go out or prices spike, like they did this past June, customers contact them, not PJM or power plant owners.
Electric utilities support a comprehensive approach beginning with the Pennsylvania Public Utility Commission’s (PaPUC) assessment of the commonwealth’s current and projected generation resources and growth. Pennsylvania and its electric utilities must have enhanced procurement options, including long-term contract flexibility. We should also explore utility investment in new generation as a reliability backstop with accountability that power plant owners and markets lack.
Two pieces of state legislation, House Bill 1272 and Senate Bill 897, would permit the option for strategic utility investment in generation, with strong PaPUC oversight and ratepayer protections, when the competitive market does not deliver needed generation. This will lower risk in the marketplace while maintaining competition.
Throughout its long history, Pennsylvania has been an energy leader. It’s time to take the same pioneering approach to the 21st century. The future of our commonwealth’s energy needs is too important. Strategic investments today won’t end competition — they will provide an additional tool to ensure reliability that will protect customers when competitive markets fail to deliver.
By committing to an “All of the Above” approach, we can help families avoid higher energy bills and prevent businesses from relocating to other states. Leadership means considering all viable options when keeping the lights on and ensuring affordability for customers are at stake.
Let’s bring all resources to the table.
Andy Tubbs
President and CEO - The Energy Association of Pennsylvania