If it feels like your electric bill keeps going up, you're not imagining it.
Across Pennsylvania, families and small businesses are paying more for electricity than they were just a few years ago. Many people assume utilities are simply raising rates, but the truth is more complicated.
Several factors are driving higher electric bills, including inflation, an aging electric grid, and growing demand for electricity. But one factor stands out: Pennsylvania has become too dependent on a single fuel source.
Pennsylvania is relying too heavily on natural gas
Today, about 60% of Pennsylvania's electricity comes from natural gas.
That might sound like a good thing. After all, natural gas has helped replace coal and reduce some air pollution over the past two decades.
But putting so much of our electric system on one fuel source comes with a cost.
When natural gas prices rise because of global events, extreme weather, or growing demand, Pennsylvania families pay more for electricity.
We've seen this happen repeatedly over the last several years. Global conflicts, inflation, and increasing exports of liquefied natural gas have all contributed to higher gas prices—and because so much of Pennsylvania's electricity comes from gas, higher fuel costs quickly show up on our monthly electric bills.
Experts agree: Diversification matters
Independent energy experts have reached a similar conclusion.
Researchers from Columbia University, Energy and Environmental Economics (E3), and the investment firm Lazard have all found that states relying heavily on natural gas are more vulnerable to price spikes than states with a more diverse mix of energy sources.
That's because electricity prices are often set by the cost of the last power plant needed to meet demand. In Pennsylvania, that's frequently a natural gas plant.
When gas prices rise, electricity prices often rise too.
The grid also needs modernization
Fuel costs aren't the only challenge.
Pennsylvania's electric grid needs major investments to improve reliability, withstand increasingly severe weather, and connect new power sources more quickly.
At the same time, electricity demand is growing as more homes and businesses electrify, and new AI data centers require enormous amounts of power.
Without planning ahead, those pressures can translate into higher costs for consumers.
The good news: We have options
Higher electric bills aren't inevitable.
Energy experts consistently find that utility-scale solar and onshore wind are among the lowest-cost sources of new electricity generation. Unlike natural gas plants, renewable energy has no fuel costs, making prices more predictable over time.
Pennsylvania can also modernize the electric grid, speed up the connection of new energy projects, and require large new electricity users—like AI data centers—to pay for the infrastructure they need instead of shifting costs onto families.
Pennsylvania needs an affordability-first energy strategy
No smart investor puts all of their money into a single stock.
Pennsylvania shouldn't put so much of its electric system into a single fuel source either.
A more diverse energy mix, a modern electric grid, and fair rules for large new electricity users can help keep electricity affordable while ensuring the lights stay on.
That's a better bet for Pennsylvania families, businesses, and our economy.