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NORTH HUNTINGDON -- Energy industry and advocacy representatives called for increased energy production and fewer regulatory barriers during a state House Republican Policy Committee hearing focused on Pennsylvania's electricity costs and grid reliability.
The hearing, "Powering Pennsylvania: An Affordable, Reliable Energy Future," was chaired Monday by state Rep. David Rowe, R-Snyder/Union/Mifflin/Juniata, and hosted by state Rep. Brian Rasel, R-Westmoreland.
Testimony came from Matt Mackowiak, director of government affairs for Core Natural Resources; Patrick Henderson, vice president of government affairs and communications for the Marcellus Shale Coalition; John Otto, executive director of Citizens Energy Council; and Nick Kerin, deputy state director of Americans for Prosperity-Pennsylvania.
Much of the testimony centered on the argument that growing electricity demand combined with the retirement of existing power generation is contributing to higher electricity costs and concerns about future reliability.
Mackowiak told lawmakers that Pennsylvania's supply of baseload generation has declined while electricity demand is increasing. He advocated protecting existing baseload generation and expanding it where possible.
"In summary, higher energy demand and lower supply means increases in power prices," Mackowiak said.
Henderson pointed to Pennsylvania's growth as a natural gas producer following development of the Marcellus Shale and advocated additional natural gas pipelines and electric transmission infrastructure.
"We need leadership from the governor to build infrastructure, both natural gas pipelines and electric transmission," Henderson said. He also argued against imposing additional taxes on power generation or energy production.
Otto discussed revenue generated for municipalities through Pennsylvania's natural gas impact fee, saying Westmoreland County communities have received more than $24 million since 2011 for uses including roads, bridges, emergency services and water and sewer systems.
"Let’s face it, prices are up, people’s bills are up," Otto said. "Here’s why. Quite simply, demand is growing faster than supply."
Kerin told lawmakers that Pennsylvania faces competition from neighboring states for energy projects, manufacturing and private investment. He advocated firm permitting deadlines and greater predictability in the regulatory process.
"You cannot say Pennsylvania is open for business while making businesses wait indefinitely for the permission to build," Kerin said.
He also argued that Pennsylvania consumers should be protected from costs created by energy policies in other states that participate in PJM Interconnection, the regional transmission organization that coordinates the electric grid across Pennsylvania and all or parts of 12 other states and the District of Columbia.
Rowe said rising energy costs affect more than household utility bills because energy prices can influence the costs of transportation, manufacturing, food and other goods and services.
"We have energy resources to deliver affordability and reliability, but families are still paying higher bills, and warnings about the reliability of our grid continue to grow louder," Rowe said.
The hearing is one of several the House Republican Policy Committee has held recently on Pennsylvania energy policy and electricity costs.