Pennsylvania Public Utility Commission (PUC) Chairman Steve DeFrank testified before the House Energy Committee, warning lawmakers of a rapidly escalating electric cost issue tied to a loophole in the state’s net metering rules.
Key points from his testimony:
- 36 qualifying facilities currently account for approximately $6.4 million annually in excess retail-rate compensation.
- That figure is projected to exceed $90 million per year by 2027 — a more than fourteen-fold increase in just a few years.
- With more than 2,100 interconnection requests pending statewide, projected exposure could exceed $700 million annually if those facilities proceed under current rules.
- These costs are first borne by commercial and industrial customers — including small businesses — and may ultimately ripple outward to residential customers as utilities recover expenses through rates.
- Chairman DeFrank emphasized that the issue is not about opposing rooftop solar or renewable energy, but about ensuring that policies designed to help customers do not unintentionally shift disproportionate costs onto other ratepayers.
“The trajectory we are seeing represents a significant affordability concern for Pennsylvania households and employers,” DeFrank testified.
The Chairman called for legislative updates to restore net metering to its original purpose — supporting true end-user customers — while preserving renewable energy growth and exploring options such as community solar that distribute costs and benefits equitably.
