BETHLEHEM, Pa. — A bill aimed at protecting Pennsylvania electric customers from unexpectedly high rates after energy contracts expire took center stage Tuesday at a Senate Democratic Policy Committee hearing.
Senate Bill 312 would require customers whose fixed-rate electricity contracts expire to automatically return to their utility's default service unless they choose another supplier.
Under current law, customers can be rolled into variable-rate plans offered by competitive suppliers, sometimes leading to significantly higher bills.
Despite support from consumer advocates, utility regulators and industry groups, the bill has remained in the Senate Consumer Protection and Professional Licensure Committee since its introduction in February 2025.
“We have a responsibility as elected officials to deliver for our constituents, and there’s a real challenge when it comes to affordability,” said Sen. Nick Miller, D-Lehigh, who hosted the hearing with Sens. John Kane, D-Delaware, and James Malone, D-Lancaster.
'Increasing prices are here to stay'
Kane, the bill's prime sponsor, said rising electricity costs are among the most common concerns he hears from residents.
“Every month more and more people are opening their electric bills and wondering how they’re going to afford them,” Kane said, arguing consumers often face confusing contracts and unexpected price increases.
"Every month more and more people are opening their electric bills and wondering how they’re going to afford them."Sen. John Kane
Pennsylvania Public Utility Commission Vice Chair Kimberly Barrow said competitive shopping can save consumers money when they carefully monitor offers and contract terms, but she believes SB 312 would address a recurring problem.
“I do believe SB312 will stop customers from inadvertently being pushed onto a much higher month-to-month shopping price, so that will save some customers money in my opinion,” Barrow said.
Barrow also warned Pennsylvania is facing a growing imbalance between electricity demand and supply, a trend she said is contributing to higher energy costs.
“We are on the verge of a supply-demand shift and these increasing prices are here to stay for a little while,” she said.
When asked what lawmakers could do to lower bills in the short term, Barrow pointed to separate legislation passed by the House on Monday that would review utility returns and potentially reduce costs passed on to customers.
“There is no doubt that energy costs are absolutely crushing Pennsylvanians,” said Rep. Mike Schlossberg, D-Lehigh, in a release Monday regarding House Bill 2224.
“Seniors, renters, homeowners, small business owners, working families, and others struggle to pay their monthly bills. One of the biggest drivers of unnecessary rate hikes is the current ratemaking system, which delivers excessive profits to wealthy shareholders of utility monopolies.
"For consumers, there are no alternatives because utilities operate as monopolies. At a minimum, we need transparency to restore fairness by putting people before profits, ensuring rates are charged fairly, and limiting charges to what is necessary to provide safe and reliable service — not a penny more.”
'Immediately take the burden off consumers'
Consumer advocates Tuesday offered some of the strongest support for SB312.
Darryl Lawrence, representing the Pennsylvania Office of Consumer Advocate, called the bill a common-sense consumer protection and questioned why it has stalled.
“I’m a huge supporter of SB312. Why it has languished so long is a mystery to me,” Lawrence said. “It can immediately take the burden of extremely high electric bills off of consumers, especially when they never signed up for extremely high contracts to begin with.”
Lawrence cited the case of a retired couple living primarily on Social Security whose monthly electric bills typically ranged from $80 to $90. After a low introductory rate expired, their generation rate jumped from 7.5 cents per kilowatt-hour to 46.7 cents per kilowatt-hour.
“There's no way any supplier can verify those are actually market numbers,” Lawrence said.
He noted participation in Pennsylvania's competitive electricity market has remained around 20% for years, suggesting many consumers do not return after a negative experience.
“What should that tell you?” Lawrence said. “A customer that's burned once is likely to never go back.”
"A customer that's burned once is likely to never go back."Darryl Lawrence, representing the Pennsylvania Office of Consumer Advocate
Andrew Tubbs, president and CEO of the Energy Association of Pennsylvania, also endorsed the proposal.
“Our customers paid in excess of $350 million more than they should have had they just stayed with the price to compare offered by their default service provider,” Tubbs said.
He called SB 312 “meaningful legislation that could put guardrails up for consumers.”
While those who testified acknowledged the bill would not address the broader forces driving electricity prices higher, several said it could provide immediate protection for customers who unknowingly end up on costly variable-rate contracts.
For now, the measure remains awaiting action in committee.
