HARRISBURG, Pa. – House Bill 2131, as written, will fundamentally alter Pennsylvania’s competitive retail energy market and will harm consumers. Retail energy suppliers’ product pricing reflects the realities of a diverse and competitive marketplace, which the monopoly default service cannot support. Competitive offerings, including renewable/green energy, Virtual Power Plants (VPPs) and other value-added products, are not directly comparable to standard monopoly utility supply. The bill imposes a blanket price comparison standard that ignores differences in product structure, risk management and customer preferences.
Rather than lowering costs, this Legislation will increase energy prices for consumers over the long term. By limiting how suppliers design and price their products, the bill would reduce competition by forcing customers back to the monopoly utility product, discourage innovation and shrink the range of options available to protect Pennsylvania consumers against rising energy costs. In turn, fewer choices in the market will lead to higher prices and significantly reduce customers’ ability to select products that meet their individual needs for the utility bills.
Additionally, the bill will increase consumer exposure to price volatility in the longer term. Competitive suppliers often provide fixed-price or long-term products that help shield customers from fluctuations in the wholesale markets. Undermining these offerings would leave more customers reliant on default service, which can be more susceptible to market price swings.
Recent utility filings underscore this concern. PECO Energy Company acknowledged in its latest rate proposal, “a typical PECO residential electric customer would see a monthly bill increase of $20.08 or 12.5% per month,” if approved. At the same time, broader trends show that electricity prices across major Pennsylvania utilities, such as PECO and PPL Corporation, have risen by roughly 45% since 2020, highlighting sustained upward pressure on energy costs.
Pennsylvania has benefited from a competitive energy market for 30 years, empowering consumers with choice and flexibility. The Retail Energy Supply Association urges policymakers to consider the unintended consequences of House Bill 2131 carefully and to preserve a market structure that supports innovation, competition and consumer choice.
ABOUT RESA: The Retail Energy Supply Association is a broad and diverse group of retail energy suppliers who share the common vision that competitive retail electricity and natural gas markets deliver a more efficient, customer-oriented outcome than a regulated utility structure. RESA is devoted to working with all stakeholders to promote vibrant and sustainable competitive retail energy markets for residential and industrial consumers. For more information, visit resausa.org. Follow RESA on LinkedIn and X (Twitter).
MEDIA CONTACT: Stacey Gaswirth, Press@resausa.org, 214.213.4675