Sen. Scott Martin: Shapiro energy policy goes from bad to worse

Our Commonwealth is blessed with an abundance of natural resources, so getting Pennsylvania’s energy policy right is one of the keys to unleashing our economy and protecting our consumers.

That is why I continue to be a fierce critic of the way Governor Shapiro is mismanaging this key issue.

The governor’s pursuit of a new, unilateral tax on electricity has been the biggest impediment to progress on this front. When Governor Wolf first began to pursue the Regional Greenhouse Gas Initiative (RGGI) – and its more than $1 billion in new electricity taxes – Republican lawmakers took him to court to prevent the new tax from impacting consumers. 

The fight extended into Governor Shapiro’s term, but thankfully, we won.

The Commonwealth Court ruled that RGGI was an unconstitutional tax on Pennsylvanians. That should have been the end of a sad chapter in executive overreach.

Instead, Governor Shapiro kept the fight alive by appealing this ruling. To all our frustration, he freely admitted that his appeal wasn’t about the policy at all. It was about executive power. 

The Shapiro Administration said it “must appeal in order to protect that important authority for this Administration and all future governors.”

I’ve said it before, and I’ll say it again: the appeal and the rationale show that Governor Shapiro cares about more about his own power than the cost of yours.

Unfortunately, instead of acknowledging the concerns of lawmakers and engaging on energy issues, he’s chosen to take us further away from solutions that will promote a stronger and more reliable grid, more affordable options for consumers, and new investments in our communities.

His latest scheme is to try to make a boogeyman out of PJM, the grid operator for Pennsylvania and other states throughout the northeast region.

To be clear, PJM does not have a profit motive. They essentially serve as traffic cops in the process, directing the flow of electricity to make sure the lights stay on at the lowest possible cost to consumers.

For years, PJM has been warning the public about potential shortfalls in energy production that could lead to rolling blackouts. We’ve seen the catastrophic consequences when an electricity grid isn’t capable of meeting demand. When the electricity goes off, people die. 

Electricity is not getting any cheaper. As demand increases, prices will only climb higher. 

Rather than heed these warnings and take positive steps toward a resolution, the Shapiro Administration instead filed a complaint against PJM for not approving renewable energy sources faster.

In reality, PJM has added numerous renewable energy providers to our production capacity. The projects that haven’t been approved are largely operators who wanted to be added to the queue but were not anywhere near ready to actually start producing energy.

To resolve the complaint, the Shapiro Administration agreed to a settlement with PJM to cap the price paid at auction to meet Pennsylvania’s unmet energy demands. The agreed-to cap was set at a price PJM was unlikely to exceed in the first place, meaning it accomplished nothing.

That didn’t stop the Shapiro Administration from taking credit. He claimed the settlement would save ratepayers billions. We’ll see exactly what happens to consumer prices on June 1. I don’t expect that price update to reduce costs for anyone. 

Shapiro has even floated the idea of leaving the PJM network. It’s hard to see how that would benefit Pennsylvania consumers. 

The reality is PJM isn’t the problem; Shapiro and his RGGI electricity tax are what energy producers cite as the real obstacles to new energy production in Pennsylvania. 

Higher energy prices have contributed to inflation by increasing the cost of a wide variety of goods and services across numerous industries. Lowering energy costs could have a positive ripple effect on our entire economy. 

It’s not too late to reverse course. Governor Shapiro could end our energy woes with a stroke of his pen to repeal his appeal of RGGI. This would clear the way for a real conversation and real engagement on energy issues to find consensus. 

When Governor Shapiro is ready for a real conversation on energy and withdraw his appeal to unilaterally tax our citizens more, Republican lawmakers are ready to talk.  However, that conversation needs to focus on building a strong, reliable, affordable grid and a thriving energy economy – not ways to push higher taxes on consumers.

Senator Martin represents the 13th District (parts of Lancaster and Berks counties) in the Pennsylvania Senate. He serves as part of the Senate Republican Leadership team as Chair of the Senate Appropriations Committee.