Alternative Energy Cost Ratepayers $3.3B in Hidden Subsidies, Research Finds 

Harrisburg, Pa., June 18, 2026 — At the start of this month, families and businesses across Pennsylvania saw yet another rate hike hit their electricity bills. 

What they didn’t see, however, is that Pennsylvania ratepayers have paid more than $3.3 billion in hidden energy subsidies since 2007 thanks to the Alternative Energy Portfolio Standards (AEPS) mandate.  

New research finds that these standards force families and businesses to pay 60 to 85 percent above wholesale market price on a significant portion of their energy. 

In his budget proposal, Gov. Josh Shapiro wants to triple the existing mandate as part of his Lightning Plan. Shapiro’s mandate, if enacted, would double residential electricity bills, based on conservative estimates.  

Elizabeth Stelle, vice president of policy for the Commonwealth Foundation, issued the following statement: 

“As consumers wonder why prices are skyrocketing, we have to reevaluate the existing mandates and programs causing prices to rise. 

“Since 2007, Pennsylvania ratepayers have paid more than $3.3 billion in hidden energy taxes thanks to the AEPS. 

“While families and businesses around the commonwealth struggle with rapidly rising electricity costs, AEPS is forcing them to pay 60 to 85 percent above wholesale price for so-called green energy. Expansion of the mandate proposed by Gov. Josh Shapiro would double residential electricity bills. 

“Worse yet, these mandates are not driving the state’s reduction in carbon emissions, with Pennsylvania’s Department of Environmental Protection attributing emissions reductions to natural-gas generation.  “Pennsylvania does not need energy mandates—it needs affordable, reliable energy that comes only through competition in the marketplace. If lawmakers are truly concerned about rising energy costs, they would abandon these fruitless mandates.”