PA House passes legislation to protect consumers from excessive utility corporation profits
Rep. Mike Schlossberg June 22, 2026 | 3:56 PM
HARRISBURG, June 22 – State Rep. Mike Schlossberg, D-Lehigh, today announced that the state House passed The Return on Equity Act, which would save taxpayers money by capping profits for utility corporations.
“There is no doubt that energy costs are absolutely crushing Pennsylvanians,” said Schlossberg. “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.”
House Bill 2224 would reset the return on equity to a fair rate for investor-owned utilities that reflects the true market-based cost of equity. It would ensure that consumers pay no more than what is necessary to attract capital investment. Additionally, it would eliminate the Gross Receipts Tax on utilities. The annual projected savings for taxpayers would be roughly $150 per household.
The legislation comes as Pennsylvania has some of the highest ROE rates in the country. In recent years, Pennsylvania ratepayers have seen an average 60% increase in their utility bills and a dramatic increase in electricity shutoffs.
House Bill 2224 is part of House Democrats’ energy affordability agenda, which aims to keep costs low, maximize grid efficiency, and put people before profit. More information on the package can be found here.
The bill now moves to the state Senate for consideration.
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