Rep. Jim Struzzi: Let’s unleash Pennsylvania’s energy potential

Homer City power plant cooling towers Homer City power plant cooling towers

Just like working families across Pennsylvania, our state government must make difficult choices to have a balanced budget. While Pennsylvanians face increasing energy prices and wonder how far they can stretch their paychecks, it is time for Pennsylvania’s leaders to make better choices that will lower prices, grow our economy, and bring us back from the fiscal cliff. 

For the budget proposal that he will present on Tuesday, Gov. Josh Shapiro has a choice: he can remove barriers to Pennsylvania’s energy sector to create economic growth and lower prices for consumers, or he can double down on the detrimental energy taxes and regulations he proposed in previous budgets.

Regrettably, the governor’s failure over the last two years to reject the Regional Greenhouse Gas Initiative (RGGI) and his proposal for new energy taxes has brought disaster to the people I represent in Indiana County. The closure of the Homer City power plant in my district resulted in over 100 direct job losses and a shattered community. 

The repercussions of the energy crisis are not isolated to Indiana County. They affect every Pennsylvania resident through higher energy prices and a shrinking economy. 

Electricity in Pennsylvania is provided by PJM Interconnection, a regional transmission organization that operates our region’s electric grid. In June 2024, Spotlight PA reported that PJM is projecting that “over a fifth of its existing power generators, largely coal and natural gas plants, will retire by 2030.”

Even more concerning, in August of this year, a report in the Delaware Valley Journal stated, “PJM officials said there’s enough energy through the spring of 2026, but warned that might not be the case in the future as more coal and natural gas power plants are forced off.” 

It’s no mystery why our energy costs have steadily risen over the past several years—when you eliminate power plants, there is less electricity on the grid, leading to higher prices for the remaining available power. 

Gov. Shapiro recently declared a hasty “victory” when he announced that PJM is seeking to lower the price cap on energy purchases. However, this announcement will not result in cheaper electricity prices.  PJM agreed to impose a $325 “ceiling” and a $175 “floor” on capacity prices.  Notably, the floor would be significantly higher than capacity prices have been over the past fifteen years.

Even more concerning, this announcement does nothing to address the root cause of PJM’s rate increase: the loss of coal and natural gas electricity generation. 

Since the governor proposed his “Pennsylvania Climate Emissions Reduction Act” (PACER), an alternate RGGI tax, he has discouraged new investment in our natural energy resources. Thus, the governor is making energy in Pennsylvania more expensive, not less.   

The solution to our energy crisis is not eliminating coal and natural gas from our energy portfolio. Instead, we must implement policies that unleash Pennsylvania’s energy potential, which will bring about significant growth and prosperity.

I urge the governor to work with Republicans. We are ready with policies that will grow Pennsylvania’s energy production instead of scaring producers away. Furthermore, Pennsylvania is headed toward a fiscal cliff; our state spending continues to outpace our revenues.  

Just as Pennsylvanians are upset about higher energy prices, they are also right to reject higher taxes. The best remedy to reverse this course is to grow our economy, and the best opportunity we have for growth is in our abundant energy resources.

On Tuesday, I hope Gov. Shapiro will join us in calling for policies that will unleash Pennsylvania’s energy potential. We have the plan; what we need is a partner.    

Rep. Jim Struzzi represents the 62nd district in the Pennsylvania House of Representatives and is House Republican Appropriations Committee Chair. 

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