PA Lawmakers Move To Curb Consumer Utility Costs

PENNSYLVANIA — State lawmakers are attempting to reduce consumer utility bills by limiting the amount of profits providers can earn for their services.

The House on Monday passed a Return On Equity bill. Lawmakers who passed it unanimously contend it could mean significant savings for people.

The 35-page bill was explained succinctly by Rep. Elizabeth Fielder, a Philadelphia Democrat who chairs the House Energy Committee. She co-sponsored the bill along with Rep. Danilo Burgos of Philadelphia, who chairs the House Consumer Protection, Technology & Utilities Committee.

“When you look at your energy bill every month, all the dollars on that bill are not for safe and reliable service or even for the energy itself – some of those dollars are going straight to wealthy shareholders,” Fielder said in a statement.

"As families struggle and face shut off notices, we are calling on these major utility companies to do their part to scale back some of their profits. This bill could save everyday people a lot of money, potentially hundreds of dollars a year.”

Over the last five years, Pennsylvania households have seen an average of 60 percent increases in utility bills, according to HeatMap.

Electricity shutoffs increased by 21.3 percent between 2024 and 2025, with more than 414,000 Pennsylvanians experiencing a utility shut off last year - the highest number ever recorded, according to the Pennsylvania Public Utilities Commission.

Pennsylvania utility companies have some of the highest rates of return on equity in the country, according to the American Economic Liberties Project.

Even though utilities are guaranteed a virtual monopoly by service region, Fielder said the rates of return on equity are some of the highest in the nation. If the House bill becomes law, there would be a default, market-based rate of return on equity that would limit the amount of excessive profit utilities can collect for their shareholders.

The bill would ensure that ratepayers pay no more than what is necessary to attract capital investments.

Lawmakers assert that the bill would guarantee a "safe harbor" return on equity rate that is fair for a low-risk, monopoly investment, plus an additional 2 percent.

Legislators contend that would put an end to excessive windfalls while allowing utilities to profit and invest in new infrastructure projects. This is because funds for infrastructure upgrades, materials, and worker salaries are compensated as expenses in rate cases, not from shareholder profit.

“Our goal here is simple," Burgos said.

"While utility companies should earn a fair return for keeping the lights on and the water running, that shouldn't come at the expense of Pennsylvanians who are already struggling to make ends meet."

“By fixing the way these rates are set and reviewed, we’re finally pulling back the curtain and making the whole process more honest. We’re making it clear that Pennsylvania is done just 'rubber-stamping' every price hike that comes across the desk.”

The bill now goes to the state Senate for consideration. If approved there, it would go to Gov. Josh Shapiro for his signature.