Pennsylvania State House & Capitol Building In Harrisburg, Pa
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