Senator Lisa Boscola – 18th Senatorial District
PJM is the largest U.S. transmission organization that coordinates the wholesale flow of electricity across 13 states, one of which is Pennsylvania. At the last wholesale power auction, the cost of electricity increased by 700%. Prices across the region rose from $29 to $270 per megawatt per day. The size of the boost caused a wave of shock on the market and should worry us all, because the most essential thing is that we will all pay more.
This boost is due to the basics of economics, i.e. the problem of supply and demand. To its credit, PJM has warned elected officials and regulators in covered states of a looming efficiency and reliability crisis for electricity needed to meet grid demand. The auction results show that PJM was not wrong.
Our demand for electricity will boost with the development of data centers, artificial intelligence and electric vehicles, to name a few; therefore, the lack of power will only get worse. The demand for data centers to support the AI market is the main reason why electricity demand exceeds capacity. The demand for electricity from a single data center is so great that the Three Mile Island Nuclear Power Plant is being reopened to supply a single data center.
Increasing electricity production is not only good for the grid, but also for Pennsylvania’s economy. Today, there are more than 273,000 workers in the energy sector across the state. This sector represents almost 5% of total employment in our country. Not all countries are equal when it comes to the potential to produce the reliable, affordable and cleaner electricity needed to power the grid. Pennsylvania is an energy powerhouse. We are a net energy exporter, which means we already produce more than we need. We are a leading producer of natural gas and are second only to Illinois in nuclear energy production. Even though we are shrinking, we still have coal-fired power plants.
Pennsylvania has a unique leadership position in producing the electricity needed to meet the growing demands of the PJM grid without putting a strain on all the banks. However, to do this effectively, we need to change our approach to setting energy policy. We need sound energy policy based on a vision for the development and growth of energy generation in Pennsylvania. Our energy policy is currently implemented in at least three different departments (Department of Environmental Protection and Natural Resources, Department of Environmental Protection, and Department of Community and Economic Development), two agencies (Utilities Commission and Gaming Commission), and the Governor’s office. The stakes are too high for our network to continue this piecemeal approach. We cannot continue as usual and expect better results.
Combining energy issues into one section will make our policy more coherent. Creating a department devoted solely to energy, headed by an appointed secretary, would send a clear message about the importance of energy policy in Pennsylvania. Energy decisions must be at the heart of our policymaking. By appointing someone who is noticeable and accountable to the legislature and the governor, we will raise the profile of energy policy.
Solar, wind, natural gas, coal and nuclear energy provide unique benefits that facilitate us meet future energy demands. Energy projects such as mines, pipelines, drilling operations, recent power plants and renewable energy projects should be viewed alongside newer technologies as part of a comprehensive vision that is good for the environment and your wallet.
Sound energy policy is indispensable to ensuring a prosperous future for all. Pennsylvania has the energy resources to play a major role on this critical issue. We need to move from politicizing energy policy to prioritizing it. It begins with the appointment of an Energy Secretary, nominated by a Democratic governor and confirmed by a Republican Senate, to oversee a recent department created by a divided Legislature. It’s time for Pennsylvania to step forward and elevate the energy conversation nationally and across the country.
