Pennsylvania State House & Capitol Building In Harrisburg, Pa
June 2025 UpdatesLightning Plan
Lightning Plan Legislation Advances Through Committee Process
The Shapiro Administration’s comprehensive Lightning Plan continues to move through the legislature, with key bills including PRESS (Pennsylvania Reliable Energy Sustainability Standard), the PACER cap-and-invest program, and Act 129 energy efficiency program reforms gaining momentum. The Act 129 amendments include adding “resilience” to program scope, expanding spending eligibility for pre-weatherization and distribution system loss reduction, and updating the 2% cost cap on utility expenditures. These changes aim to modernize Pennsylvania’s energy approach while maintaining affordability for consumers.
February 2025 Updates
Governor Unveils “Lightning Plan”
Governor Shapiro announced a comprehensive energy plan that includes:
- RESET (Pennsylvania Reliable Energy Siting and Electric Transition) Board:
- New streamlined permitting process for priority energy projects
- Fast-track project approvals through coordinated agency review
- Focus on accelerating reliable energy infrastructure development
- Balance rapid development with community interests
- Economic Development Components:
- Enhanced EDGE Tax Credit Program up to $100M for power generation facilities
- Incentives for reliable energy development projects
- Support for hydrogen initiatives and infrastructure
- Tax credits for sustainable aviation fuel projects
- Manufacturing expansion incentives
- PACER Program Development:
- New cap-and-invest program framework
- Integration with existing environmental standards
- Focus on industrial sector emissions
- Revenue reinvestment in clean energy projects
- Energy Standards and Programs:
- PRESS energy standards modernization initiative
- Enhanced energy efficiency rebate programs
- Specific focus on rural community energy initiatives
- Workforce development and training components
- Consumer protection measures
- Implementation Framework:
- Public-private partnerships for infrastructure development
- Environmental protections and emissions reduction targets
- Consumer cost protection measures
- Job creation requirements
- Regular progress monitoring and reporting
- Connection to Existing State Energy Policies:
- Builds on PJM Price Cap Agreement to ensure energy affordability
- Complements existing RISE PA industrial decarbonization program
- Expands upon Act 129 energy efficiency requirements
- Integrates with Pennsylvania’s Clean Heat Standard initiatives
- Aligns with state’s participation in the Regional Greenhouse Gas Initiative (RGGI)
- Relation to Regional Energy Policy:
- Coordinates with PJM grid modernization efforts
- Addresses regional transmission upgrade needs
- Supports multi-state hydrogen hub development
- Enhances Pennsylvania’s role as a major energy exporter
- Aligns with neighboring states’ clean energy goals
- Consumer Impact Integration:
- Works alongside utility rate reform efforts
- Supports energy assistance programs
- Complements weatherization initiatives
- Enhances energy efficiency programs
- Focuses on maintaining affordable energy costs
PJM Price Cap Agreement Implemented
Following Governor Shapiro’s December complaint to FERC, a significant agreement has been reached:
- Price Cap Structure:
- Capacity auction prices capped between $175-$325/MW-day
- The agreement extends through 2028
- Multi-state support, including Delaware, Illinois, Maryland, and New Jersey
- $21 billion in projected consumer savings over two years
- Implementation Details:
- Phased introduction of price caps
- Regular monitoring and adjustment mechanisms
- Consumer protection measures
- Grid reliability requirements
- Regional Coordination:
- Cross-state implementation strategies
- Unified monitoring approach
- Shared enforcement mechanisms
- Joint consumer protection initiatives
Electric Bill Reform Under Review
The Consumer Protection Committee held a public hearing examining:
- Act 129 Implementation:
- Program effectiveness evaluation
- Cost recovery mechanisms
- Consumer benefit assessment
- Future program recommendations
- Utility Oversight:
- Rate case transparency requirements
- Consumer protection standards
- Public participation processes
- Reporting obligations
- Energy Affordability:
- Low-income program expansion
- Payment assistance initiatives
- Energy efficiency incentives
- Consumer education programs