FOR IMMEDIATE RELEASE
PENNSYLVANIA (September 23, 2026): The Energy Efficiency Alliance (EEA) and Northeast Energy Efficiency Partnerships (NEEP) today released a new report analyzing twenty years of electricity bill trends in Pennsylvania and the savings, benefits, and costs of the Commonwealth’s Act 129 Energy Efficiency Programs. We conclude by outlining practical strategies the state can use to reduce electric bills for households and businesses.
The report shows steep increases in electricity bills since 2021 that outpace inflation, despite declining electricity usage. Residential bills rose 39 – 49 percent, with bill increases for commercial customers even steeper, at 51 – 59 percent. These increases translate into significantly higher costs for customers. Generation charges, or the costs for producing electricity at power plants, are the primary driver of these higher bills, increasing annual bills by an average of $177 per year for a residential customer and by an average of $707 per year for customers who heat their home with electricity since 2021 (in real 2025 dollars).
Transmission and distribution (T&D) charges have also increased steadily over the past 20 years. Compared to 20 years ago, residential customers now pay on average $187 more per year for T&D charges and residential heating customers paying $850 more per year (in real 2025 dollars). For commercial customers, transmission charges outpaced distribution charges growth, more than doubling for small commercial customers and nearly tripling for medium commercial.
The report shows that while overall bills are increasing, energy efficiency is still a least-cost resource that lowers costs for all customers and has minimal impacts on customer bills. Over eight years, Act 129 Energy Efficiency and Conservation (EE&C) program measures have delivered 96,288 GWh of lifetime savings — enough to power all Pennsylvania homes for 1.4 years. With a levelized cost of saved energy of $16–$57 per MWh, efficiency remains a least-cost resource, well below new gas generation, which costs $51–$129 per MWh. EE&C charges account for less than two percent of residential and commercial bills, meaning that a typical residential customer paid less than $1 per month in 2025.
“Pennsylvania has proven, low-cost tools to combat these rising prices,” said Erin Cosgrove, Director of Policy and Programs at NEEP. “Energy efficiency programs help Pennsylvanians lower bills and reduce overall demand, which drives down system costs for everyone. Modern rate design can achieve key objectives like encouraging efficient energy consumption, reducing peak demand, and prioritizing affordability.”
The report identifies several market pressures contributing to rising customer bills, including increased T&D investments, utility returns on equity, PJM’s multi‑year interconnection queue pause, and rapid growth in proposed data centers. These trends are intensifying affordability challenges, reflected in the more than 387,000 household gas and electric shutoffs statewide for nonpayment in 2025.
To prioritize affordability, the report outlines several potential strategies, including: modernizing rate design so prices better align with the cost of serving customers, increasing investment in energy efficiency and virtual power plants, strengthening the grid planning process, and limiting the impact of data centers on customer bills.
“Pennsylvania families and businesses are facing real affordability challenges,” said Jeaneen Zappa, Executive Director of EEA. “This report shows what’s driving up electricity bills and how energy efficiency is an essential tool for the Commonwealth to lower costs. Act 129 programs have generated enormous, affordable savings for homes and businesses across the state. Now is the time to prioritize and invest in energy efficiency programs.”
The full report, Path to Affordability: Trends and Solutions for Pennsylvania Electric Bills, is now available.