Pennsylvania Statewide Electricity Tax Cut and Utility Profit Regulation

proposed

Pennsylvania lawmakers have voted to eliminate a 5.9% state tax on the sale of electricity, aiming to lower electric bills for all customers statewide. The tax cut would take effect immediately and requires utilities to pass the savings to customers or face fines. The legislation also includes a proposal to cap utility profits based on a formula tied to U.S. Treasury bond yields or through a competitive auction process. The bill has passed the state House unanimously and the state Senate has approved the tax cut as part of a broader package, but the regulatory changes to utility profits have not yet been taken up by the Senate. The tax cut is expected to create a $1.7 billion hole in the state budget, with no clear plan to offset the loss.