Lawmakers warn transmission proposals and APS changes could shift costs to Pennsylvanians

Several lawmakers told the PUC that proposed transmission corridors and changes to the Alternative Energy Portfolio Standards risk placing financial and land-use burdens on Pennsylvania residents. Representatives said projects proposed to move power out of state can require right-of-way takings, pass construction costs to local ratepayers, and threaten farmland and local environments.

Representative Krupa and others called out Project 237 and other proposed PJM transmission lines that would cross multiple Pennsylvania counties. "It's offensive that Pennsylvania landowners could be placed at risk of losing property rights through easements or eminent domains to build these transmission corridors when they don't benefit Pennsylvania residents," Representative Krupa said.

Steve DeFrank told the committee the commission has litigated such issues before, lost in federal appeals courts on aspects of Transource litigation and is preparing a potential complaint to FERC on transmission tariff interpretations. DeFrank said some proposed eastern segments may no longer be needed while western legs could still be resubmitted to PJM.

Members also pressed the PUC about APS credits and costs. DeFrank said Tier 2 (waste-coal) credit prices rose dramatically—from "$3.6 million in 2021 to $376 million in 2024"—and that stabilizing the market may require temporarily suspending Tier 2 credits under a force majeure until credit balances recover. He warned that mandating a large increase in Tier 1 (wind/solar) percentages could raise ratepayer costs in the short term while resource diversity and reliability questions persist.

Lawmakers requested additional cost analyses, Pennsylvania-specific impact assessments, and assurances that affected landowners will receive notice and an opportunity for due process as projects proceed through PJM and FERC.