Monopoly Utilities Want to Rewrite the Rules — and Make You Pay for It
There’s a lively debate underway in Pennsylvania about the future of the energy system, and this week, former top state utility regulator James Cawley added his voice with an editorial in PennLive: “Why letting utilities build power plants is a $16 billion mistake”.
Cawley argues that Pennsylvania should not let monopoly utilities build and own power plants again, warning it would “undo nearly three decades of competitive energy policy.” He’s right to be concerned about the costs of government-protected monopolies, but the real danger here isn’t competition. It’s consolidation of power.
Let’s start with the basics. The bills now moving through the legislature could let monopoly utilities like PECO and PPL Electric return to the generation business. They already control the poles, wires, and substations that deliver power to our homes and businesses. Giving them back control over power generation would hand them the keys to the entire system and stick ratepayers with the bill.
When monopoly utilities build power plants, they do it with your money. They use ratepayer funds to finance construction and collect guaranteed profits, regardless of whether those projects succeed or fail.
Today, they’re exploiting rising demand and legitimate concerns about reliability to convince lawmakers that the only solution is to rebuild their empires. They call it “modernization.” We call it what it is: a monopoly money grab.
The irony is that these same companies are struggling to do the job they already have. The Public Utility Commission’s own data shows a 30-year high in reportable outages and 2.8 million Pennsylvanians left without power in 2024. Before asking for new construction authority, they should fix their aging infrastructure and deliver reliable service.
The answer is building a balanced system that rewards innovation, streamlines permitting, and holds every player — public or private — accountable for performance and cost. If Harrisburg hands monopoly utilities the power to build again, Pennsylvanians will pay more and get less.
