Bill > SB897

This bill amends Pennsylvania's electric utility laws to address potential energy resource inadequacy and provide electric distribution companies with more flexibility in ensuring reliable power supply. The legislation introduces new definitions including "long-term resource adequacy agreement" and "new generation resource," which now explicitly include natural gas, nuclear, and battery storage options. The bill allows electric distribution companies to petition the Public Utility Commission to invest in new generation resources when a "resource inadequacy" is identified, which occurs when projected electric supply falls below a reasonable reserve margin. Electric distribution companies can now invest up to 100% in new generation resources or enter long-term resource adequacy agreements with third-party developers. The bill modifies procurement rules by expanding the potential contract duration from 20 to 30 years and removing some previous restrictions on contract proportions. Importantly, any costs associated with these new generation resource investments can be recovered through a non-bypassable cost-recovery tariff mechanism, ensuring utilities can recoup their investments while also providing credits to customers from net revenues generated by these new resources. The legislation aims to enhance Pennsylvania's energy security, provide more stable power generation, and give utilities additional tools to manage potential future electricity supply challenges.

Labor and Employment

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=S&type=B&bn=897