Pennsylvania State Rep. Perry Stambaugh (R-Perry/Juniata) is planning to introduce legislation that would allow electric distribution companies to invest in and potentially own baseload generation.
Further, the bill would require electric distribution companies that decide to invest in or construct baseload power plants to pass along to consumers any net revenue that comes from selling electricity on the open market. Pennsylvania is one of 13 states that are part of the PJM Interconnection power grid.
“We are facing a serious shortfall in generation resources that the competitive power supply market has not been able to solve,” Stambaugh said. “Within 10 years, PJM Interconnection forecasts the retirement of up to 40,000 megawatts (MW) of dispatchable baseload generation without firm replacement resources to take its place. At the same time, an increase of 62,000 MW of new load is expected to be added, led by operation of energy-intensive data centers and artificial intelligence as well as electrification of the transportation and commercial heating/cooling sectors.”
Stambaugh believes this state-focused approach would provide electric distribution companies with the flexibility to work alongside the existing competitive power supply market to secure the state’s energy future.
“It’s clear immediate action needs taken to keep a safe, reliable, and affordable supply of power flowing. This looming energy crisis will result not only in record-high electric bills, but it also opens up the very real possibility that light switches may not work,” Stambaugh said. “Electric distribution companies are on the front lines of making sure consumers have the energy they need to power homes and businesses. Letting them invest in generation once again, if they so choose, is just part of that commitment.”