Deregulation Or Restructuring Of The Pennsylvania Electricity Sector

The Process of Deregulation or Restructuring of the Pennsylvania Electricity Sector Pennsylvania has a very long and extensive history in the electricity sector much like many other states, and it has its chapter in de-regulation and reconstruction of its electricity sector as well. Prior to December of 1996, Pennsylvania’s electricity market was being regulated and controlled by the local government; since then the market was deregulated in hopes to create a competitive market to decrease electricity prices for consumers (Electricity Watch). For why deregulation was needed at the time instead of earlier or later came down to one thing, the prices. In the Commonwealth Foundation’s article, “Electricity Restructuring and Rate Caps”, it is discussed

The Electric Choice talks about that due to deregulation, and the fact you can not only just pick the cheapest rate for you, you can also pick the power that you want to support. What that means is that the consumer can choose which energy source, be it nuclear, coal, natural gas, solar, wind, et cetera, (The Electric Choice, 4 Reasons Why…) and “if your selected electricity generation supplier is unable to provide the electricity you need, your local utility company will supply you with electricity at the default price with no interruption of service” (Electric

With many plans and strategies to tackle the challenges of what they can do after expiration seems daunting. With possible extensions, we could see higher prices and less innovation down the road, while states like Texas have only had increase competition and lowered prices due to their cap rates gone (Commonwealth Foundation, 4). The Commonwealth Foundation have given recommendations for allowing the rate caps to expire and how to deal with any potential problems that might occur to their expiration, they include:
“Reduce or abolish the state Gross Receipts Tax on electricity. When electricity prices increase, the taxes paid by consumers on their energy bills will also rise. Reducing the Gross Receipts Tax rate will lessen the burden on consumers.
Repeal excessive environmental regulations, which inhibit fuel-based coal and other low-cost options while driving up the price of electricity. State regulations that are more severe than federal EPA regulations place an unnecessary burden on electricity generators, increase the cost of doing business in Pennsylvania, and increase the costs passed on to consumers. If anything, legislators should reward environmental consciousness instead of punishing the lack of