Pennsylvania’s Energy Gap: Consumers Pay More, PA Powers the Northeast

Fun fact: Did you know that Pennsylvania is the second-largest net supplier, after Texas, of total energy to other states? 

We need improved policies to bring the cost of consumer energy down and more renewables to come online.

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Pennsylvania residents face an interesting energy paradox: despite being the nation's second-largest energy exporter, consumers pay higher prices for power while lagging in clean energy adoption.

Recent data shows PA residential electricity rates at 17.57 cents/kWh—nearly a dollar more per 100 kWh than the national average of 16.63 cents. This price gap has widened since 2020, hitting PA households particularly hard in a state that consumes 8% more energy per household than the national average.

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All data taken from https://www.eia.gov/electricity/state/Pennsylvania/ 

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Consumer Costs: A Mixed Picture

Pennsylvania consumers face varying energy costs compared to national averages.

As of August 2024, residential electricity rates in Pennsylvania stand at 17.57 cents per kilowatt-hour, notably higher than the national average of 16.63 cents.

Natural gas prices tell a similar story. While Pennsylvania's residential natural gas rates are slightly above the national average ($23.99 versus $23.40 per thousand cubic feet), the state's position as the nation's second-largest natural gas producer suggests potential for future price stability.

However, Pennsylvania stands at a critical juncture the energy transition, ranking third nationally in carbon dioxide emissions while maintaining some of the highest residential energy costs in the Mid-Atlantic region.

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Generation Mix Shows Rapid Change

The state's electricity generation portfolio has undergone dramatic changes:

• Natural gas now dominates at 62.4% of generation (compared to 48.0% nationally)
• Nuclear power provides 28.9% (versus 16.5% nationally)
• Coal has declined to just 5.5% (versus 16.3% nationally)
• Renewables account for 3.0% of generation, significantly below the national average of 18.8%

However, growth in solar PV generation shows promise:

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Opportunities for Consumers to Benefit

Pennsylvania's deregulated energy market has created opportunities for consumer choice, but several key areas could drive further benefits:

1. Renewable Energy Expansion: With renewables comprising only 3.0% of generation versus the national average of 18.8%, there's significant room for growth. The state's 1,891 electric vehicle charging stations and growing solar capacity indicate momentum toward clean energy adoption.
2. Solar Development: Small-scale solar installations produced three-quarters of Pennsylvania's solar generation in 2022, highlighting the success of distributed generation. With 600 megawatts of new solar capacity planned for 2024-2025, the trajectory is promising but could accelerate with supportive policies, namely approving more Community Solar buildout and interconnection.
3. Energy Storage: Pennsylvania's leadership in natural gas storage (49 facilities, the most of any state) demonstrates infrastructure expertise that could be leveraged for renewable energy storage solutions.

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Policy Implications

The data suggests several policy priorities could benefit consumers:

• Expanding community solar access to leverage economies of scale
• Streamlining rooftop solar permitting to reduce soft costs
• Strengthening the Alternative Energy Portfolio Standard beyond its current 18% requirement (lawmakers have spoken about a push for 30% by 2030)

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Looking Ahead

This data shows Pennsylvania's position as a key state in the national energy transition. While current emissions and residential energy costs present challenges, our state's energy infrastructure and growing renewable capacity provide a good foundation for moving forward.

Remember that access to energy is highly correlated with economic growth and prosperity.

If you want to learn more about consumer energy and how to make your home resilient, feel free to reach out.

Oh and..Go birds.