David N. Taylor
June 24, 2024
Good morning, I am David N. Taylor, President & CEO of the Pennsylvania Manufacturers’ Association.
Our sector depends on abundant, reliable, affordable energy.
PMA supports a pro-production agenda for domestic energy in our competitive marketplace, which is working. Before competition, PA’s electricity rates were 20% above the national average. As of March 2024, PA’s commercial and industrial consumers paid a full percent below the national average.[1] According to DEP, from 2005-2020, Pennsylvania’s electric generation sector cut greenhouse gas emissions by 44.4%.[2]
House Bill 2277 would end the competitive market by mandating half of all PA electricity generation come from government-chosen sources, including 35% from “Tier I” sources such as wind, solar, and other technologies that do not exist.
In 2023, 96% of PA’s electric generation came from natural gas, nuclear, and coal. Under this bill, electric generation from those three sources would be eligible to meet only 50% of our electricity demand. With the federal nuclear production tax credit, plus a new Zero Emission Credit subsidy in this bill, the existing 32% nuclear generation share in PA’s electric power generation portfolio will likely be preserved. Natural gas generation will effectively be able to compete for only 18% of PA’s remaining electricity market share. This would reduce the competitive market by 69% and would prematurely shutter many of the existing coal and natural gas fleets that are now operating in compliance with all federal and state standards. These closures threaten our already fragile grid reliability here in PA and throughout the entire Mid-Atlantic and northeastern U.S.
The bill’s sponsors must answer many fundamental questions about this plan before the legislature can even begin considering it. Such as:
- Which energy sources will provide how much electricity by what date?
Boasting of the new energy sources included in his plan, Governor Shapiro said: “So not only will it be wind and solar anymore, but it’s also going to be methane digesters, new fusion technology, [and] small modular nuclear reactors.”
Read the full testimony HERE.
Footnotes:
[1] Energy Information Agency, 2024. https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a
[2] Department of Environmental protection, 2023. https://files.dep.state.pa.us/Energy/Office%20of%20Energy%20and%20Technology/OETDPortalFiles/ClimateChange/FINAL_2023_GHG_Inventory_Report_12.13.23.pdf