Environmental and Consumer Impacts of Electric Utility Restructuring in Pennsylvania

Electric Utility Restructuring in Pennsylvania

Goal: Assess the potential environmental and consumer impacts of electric utility restructuring in Pennsylvania.

Pennsylvania’s electric utility restructuring legislation introduced competition into the state’s electricity market and gave consumers greater choice among electricity suppliers. During the transition to the new system, however, many details of the regulatory framework had not yet been defined, creating uncertainty about its potential environmental and consumer effects.

TerrAqua examined how restructuring could affect electricity generation, energy efficiency, renewable energy, and air emissions. We also considered potential effects on low- and moderate-income households, including whether changes in electricity pricing and consumer choice could disproportionately affect these customers.

Because competition could encourage utilities and electricity suppliers to reduce costs, restructuring had the potential to influence both the sources of electricity generation and investments in energy efficiency and environmental protection. TerrAqua assessed these issues and helped identify approaches that could preserve environmental protections and consumer benefits as Pennsylvania moved toward a competitive electricity market.

TerrAqua’s role: Assess environmental and consumer impacts and analyze policy implications.

Client: The Heinz Endowments, Pennsylvania Environmental Resource Consortium (PERC), and Pennsylvania Resources Council, Inc..