Why Pa.'s energy boom isn't lowering power bills
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Domestic energy production is at an all-time high, but it's not leading to lower electricity bills.
Why it matters: Electricity rates are rising across the country — 25% in Pittsburgh and 45% in Chicago since last year and 23% in Richmond, Virginia, this year.
The big picture: Pennsylvania is doing its part for the local grid, producing record amounts of natural gas and exporting more electricity than any other state in the nation, per the U.S. Energy Information Administration.
- But even that isn't lowering costs for consumers, because Pennsylvania still isn't producing and transferring enough energy.
- Demand has skyrocketed due to increased residential consumption and energy-hungry data centers, energy leaders and Gov. Josh Shapiro's administration tells Axios.
- Increasing fossil fuel use has been shown to have impacts on climate change.
Context: PJM manages a power grid covering over 65 million people across 13 states in the Mid-Atlantic and Midwest.
- It generated 1.37 gigawatt-hours in 2025, with Pennsylvania producing 247 million megawatt-hours, followed by Ohio (147), Virginia (106) and others, according to Pennsylvania's Independent Fiscal Office.
- Consumers in the grid used 1.3 gigawatt-hours in 2025, and with demand expected to increase rapidly, rates are correspondingly increasing, according to PJM.
What they're saying: "Simply put, we need more energy infrastructure — pipelines, natural gas storage, and power plants — in Pennsylvania and the broader PJM region," said Cynthia Niemeyer-Tieskoetter, an American Petroleum Institute senior policy adviser.
- Natural gas isn't moving efficiently enough from Pennsylvania to power plants to create electricity, she said, and modernizing the permitting system to build gas infrastructure faster is needed.
The other side: PJM is working to address the supply-and-demand imbalance, PJM vice president Jason Connell wrote in a March blog post.
- He acknowledged that developer permitting for projects is an obstacle to bringing projects online in a timely manner, but said PJM is "working on numerous fronts internally to further accelerate the process."
- PJM has approved 103 gigawatts of generation agreements since 2020.
- Twenty-three gigawatts have entered service. Another 54 gigawatts are approved, but delayed in connecting to the grid, which PJM spokesperson Jeff Shields said is the state's responsibility.
Between the lines: The Shapiro administration supports an "all-of-the-above" approach but warns against overreliance on natural gas.
- Natural gas generated over 58% of the state's energy in 2025, up from 30% a decade ago, spokesperson Samantha Reposa said.
- "Solar is an ideal partner for storage because the fuel costs are zero, it's free from the sun and when paired with storage you can deploy it in the moments when it's most economical and needed," she said.
State of play: Natural gas supplies a plurality of PJM's power, but recently faced a supply shock from a cold winter and that could worsen if the Iran war drags on.
- Diversifying energy sources would improve resilience and affordability, Reposa said.
What's next: There's no immediate relief.
- A Homer City plant will add 700–800 megawatts by 2028.
FirstEnergy is planning a 1,200-megawatt plant near Morgantown, West Virginia, by 2031.