Pennsylvania Faces Power Crisis Amid Inadequate Energy Solutions

The Iceberg Ahead: Pennsylvania’s Looming Power Crisis

Nearly a year has passed since Governor Josh Shapiro announced a “new era” of leadership in energy, introducing a program he claimed would create 15,000 jobs, save energy customers $664 million, and generate $11.4 billion in investments for “clean, reliable energy resources.” He has traveled across the state, promising to lower utility costs while promoting questionable agreements and feel-good initiatives that merely serve as temporary fixes for a much deeper issue.

Time and again, the governor has neglected to address or even acknowledge the root cause of the price increases faced by all Pennsylvanians—the ongoing threat posed by his Regional Greenhouse Gas Initiative (RGGI) electricity tax and the premature closure of thermal baseload generation facilities without a solid plan for adequate replacements. The situation is fundamentally about supply and demand. When supply fails to meet the expected demand, prices inevitably rise.

Over the next decade, even under the most conservative estimates, our electric grid is projected to face a shortfall of 80,000 megawatts of electricity. Conservatively speaking, Pennsylvania facilities generate 25% of the electricity flowing into the grid. Basic math indicates that we need to construct at least 20 generation plants, each with a capacity of 1,000 megawatts, to maintain our role as a reliable electricity supplier. Currently, there are no plants under construction and none planned. In fact, since the introduction of RGGI, there have been no new investments in baseload electric generation within Pennsylvania.

The governor is correct in stating that doing nothing is not an option. However, repeatedly making the wrong decisions only exacerbates the problem. Until he renounces RGGI and abandons his efforts to impose a carbon tax, it is difficult to take seriously any claims that he wants to alleviate the burden of rising utility costs and address the impending power deficit.

Pennsylvania requires genuine solutions that focus on attracting energy development, investing in modern grid infrastructure, and streamlining the permitting and regulatory processes to ensure there is enough power available to meet demand. The Senate Environmental Resources and Energy Committee has prioritized responsible energy development and protecting the reliability of the PJM electric grid through sensible policy measures and collaboration with neighboring energy-producing states.

Last session, alongside legislators from Ohio, we held a series of hearings to discuss challenges related to PJM. We have advanced several measures aimed at addressing grid reliability, including legislation to establish an Independent Energy Office in Pennsylvania, legislation to safeguard the power grid from intentional damage, and legislation to ensure that decisions regarding energy restrictions fall within the legislature’s purview. Unfortunately, these measures garnered support exclusively from Republican members of the committee.

Recently, I announced plans to introduce a bill aimed at addressing the electric generation shortfall by establishing the Grid Stabilization and Security Act. Additionally, I am working on plans to reintroduce a bill from the last session that would create a Pennsylvania Baseload Energy Development Fund.

Merely stating that we must diversify our energy sources and create clean, reliable, and affordable energy does nothing to address the fundamental question: where will my electricity come from at 3 a.m. on a cold, calm winter night? We are heading straight toward an iceberg without a plan to slow down or halt our momentum. It is imperative that we encourage and implement the construction of thermal baseload electric generation capacity immediately. I hope the governor will join us in this crucial effort.

State Sen. Gene Yaw, R-Loyalsock Township, represents Bradford, Lycoming, Sullivan, Tioga, and Union counties.