PUC requests $104.78 million as lawmakers press agency on record shutoffs and grid reliability

Steve DeFrank, chairman of the Pennsylvania Public Utility Commission, told the House Appropriations Committee the agency is seeking $104.78 million for fiscal year 2026–27, including $5.38 million in federal funds for pipeline, rail and motor-carrier safety and a state-assessed share of $98.102 million. “This request represents a 2.18% increase in our budget, primarily driven by contractual salary and benefit obligations, as well as managing our current program load,” DeFrank said.

The chairman outlined the commission’s oversight of more than 8,400 regulated entities across electricity, natural gas, water, wastewater and telecommunications and stressed the PUC’s safety responsibilities, including pipeline oversight and transportation services. He emphasized the commission is not funded from the state’s general fund but through assessments on regulated entities.

Lawmakers focused much of their questioning on affordability. Representative Curry noted that utilities terminated service to a record 415,000 households in 2025 and asked how the commission plans to reverse the trend. DeFrank pointed to increased participation in customer assistance programs, LIHEAP data sharing with the Department of Human Services and newly standardized application data points that allow utilities to share eligibility information across electric, gas and water providers to better match customers with assistance.

Members also pressed the commission about its ability to influence wholesale market-driven price increases. DeFrank said many price pressures stem from PJM’s wholesale market and rising fuel costs, not direct PUC control: “We are a restructured state; we go to the PJM marketplace to secure power.” He described PUC advocacy at FERC and PJM and said the commission is participating in stakeholder processes intended to reform market constructs that are not meeting current reliability and capacity needs.

DeFrank acknowledged the strain on agency resources: the PUC is repurposing positions from commissioner offices to technical staff to meet demand for load-forecast analyses and other tasks tied to recently passed legislation, but he said the agency may need to staff up further.

The committee received the testimony as part of its ongoing multiweek budget review; lawmakers and the commission signaled work ahead on consumer outreach, continued engagement with PJM, and further follow-up on the PUC’s staffing and technical needs.