HARRISBURG, Pa. – The Retail Energy Supply Association would like to comment on the House Democratic Leadership’s press conference on energy affordability for Pennsylvania consumers.
As policymakers consider House Bill 2131, it is critical to ensure that well-intended solutions do not produce unintended consequences. While the goal of lowering energy costs is shared, this legislation risks doing the opposite.
Requiring retail energy suppliers to price all products below utility default service rates is neither feasible nor consistent with the structure of a competitive market. Many products, including renewable and value-added offerings, are not comparable to standard utility supply. As Chairman DeFrank said in his Senate appropriations hearing, taking choices away from customers and banning options is not the answer. There are other policies to provide relief to customers who need assistance. RESA is committed to continued education of consumers and moving this energy market forward, rather than forcing customers back to a service they did not choose.
House Bill 2131 would reduce competition, discourage innovation and narrow the range of choices available to consumers who choose to shop for their energy needs. That reduction in market activity will lead to higher prices and fewer options for customers. It would also increase their exposure to price volatility by undermining fixed-price and long-term products that provide stability during periods of market fluctuation.
Concerns about rising costs tied to the utility model have been acknowledged at the highest levels in Pennsylvania. Governor Shapiro recently stated, “utility companies are seeing record profits while consumers are paying more,” underscoring the need for solutions that prioritize affordability and competition rather than expanding reliance on monopoly service.
Other states offer important lessons. In Maryland, the passage of Senate Bill 1 essentially eliminated the residential retail energy market, contributing to today’s ongoing affordability challenges. Today, Maryland has zero competitive market offers for consumers to protect them from rising monopoly utility costs. Baltimore Gas and Electric (BGE) has warned that “customers are seeing higher bills largely driven by increased supply costs and regional market pressures,” according to reporting by The Baltimore Sun. Pepco has noted that bill increases are being driven by “higher energy supply prices and transmission costs that are outside of the company’s control.” These trends reinforce that monopoly utility default service is not insulated from rising costs—and, in many cases, passes those increases directly on to consumers. Pennsylvania has the advantage of avoiding a similar outcome.
RESA remains committed to working with lawmakers on policies that genuinely advance affordability while preserving competition, innovation and consumer choice. We look forward to finding solutions that favor customers, not monopoly utilities that can only offer rising costs in this affordability crisis in Pennsylvania and across the country.
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