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With New Federal Pollution Rule, Pennsylvania Residents Should See Lower Electricity Bills

June 25, 2015

With New Federal Pollution Rule, Pennsylvania Residents Should See Lower Electricity Bills

EPA’s Clean Power Plan and Energy Efficiency Improvements Will Mean Savings for Pennsylvania Consumers

WASHINGTON, D.C. – Pennsylvania electricity consumers will see much-needed savings as a result of the U.S. Environmental Protection Agency’s (EPA) Clean Power Plan, according to a new report from Public Citizen.

The report, “Clean Power, Clear Savings,” shows that Pennsylvania’s electricity consumption will fall up to 9.8 percent by 2030, according to the EPA’s notably conservative data. Pennsylvania’s electricity rates may rise slightly under the Clean Power Plan before dropping. The net effect is that electricity bills will increase slightly in 2020 before declining much more steeply in 2025 and 2030, saving the average Pennsylvania household up to $132 annually, Public Citizen found.

The EPA’s Clean Power Plan, scheduled to be finalized in August, is designed to curb pollution from power plants by 30 percent from 2005 levels by 2030. It sets targets for the reduction of carbon pollution in each state.

As part of the EPA’s plan, states can decide how to meet their targets. They can comply individually or in regional groups, and they can use a mix of strategies – ranging from improving the efficiency of existing coal-fired power plants to using energy efficiency to reduce electricity consumption. Pennsylvania’s compliance plan should include meaningful improvements in energy efficiency, which will lower consumers’ electricity bills.

“The Clean Power Plan is a great opportunity not just to fight climate change, but to lower Pennsylvania’s electricity bills,” said David Arkush, author of the report and managing director of Public Citizen’s Climate Program. “In fact, Pennsylvania can and should go beyond the EPA’s targets when it comes to energy efficiency, saving consumers even more money and doing even more to curb global warming and extreme weather.”

“This report demonstrates the savings Pennsylvania consumers will realize with the implementation of the EPA’s Clean Power Plan,” said Jennie Demjanick, energy policy analyst for Penn Future, an environmental and public health advocacy group. “Energy efficiency will be a significant component of the Commonwealth’s compliance with the plan. Fortunately, energy efficiency is a cost-effective compliance option and will lower electricity costs as well as carbon pollution.”

Read the report.