Fiedler, Burgos introduce legislation to curb excessive profits for utility corporations, save consumers money
Pennsylvania House Democratic Caucus May 18, 2026 | 1:54 PM
HARRISBURG, May 18 – Pennsylvania House Energy Committee Majority Chair Elizabeth Fiedler and state House Consumer Protection, Technology & Utilities Committee Majority Chair Danilo Burgos introduced legislation today that would limit excessive profits for utility corporations.
“It’s outrageous that utility companies can make tremendous profits while raising rates on working people. Under Pa. law, rates are supposed to be fair for consumers, while allowing utility companies to recover costs and earn reasonable returns,” said Fiedler, D-Phila. “Yet right now, working people can’t even afford their energy bills – and these companies are making record-breaking profits. That needs to change.”
“Our goal here is simple: while utility companies should earn a fair return for keeping the lights on and the water running, that shouldn't come at the expense of Pennsylvanians who are already struggling to make ends meet,” said Burgos, D-Phila. “By fixing the way these rates are set and reviewed, we’re finally pulling back the curtain and making the whole process more honest. We’re making it clear that Pennsylvania is done just 'rubber-stamping' every price hike that comes across the desk.”
Burgos and Fiedler emphasized that they are committed to working together to make sure necessities, such as heat and power, stay affordable for every family in the commonwealth.
House Bill 2224 would create a default, formula-based return on equity for investor-owned utilities that reflects the true market-based cost of equity. The bill would ensure that ratepayers pay no more than what is necessary to attract capital investments.
If utilities believe that the default return on equity is too low, they would be allowed to pursue a competitive auction that instead produces a market-based cost of equity. This system is well established, used by PJM to procure electric generation capacity and by bond markets to determine the minimum return required by lenders.
According to a 2025 report by the American Economic Liberties Project, inflated returns on equity have become a primary driver of rate increases nationwide, costing consumers billions while providing no corresponding improvement in service. Soaring utility bills increase the likelihood of shutoffs for Pennsylvanians and threaten the companies’ core mission: providing safe and reliable service to all.
In fact, Pennsylvania utilities have among the highest returns on equity of all utilities in the country, earning 11.6% from 2020 to 2024 – a full four percentage points higher than the national average, according to the report. These profits come at a high price for Pennsylvanians, who face a growing affordability crisis and are forced to make painful household budget decisions like skipping necessities such as groceries or prescriptions to make ends meet.
In 2025 alone, PECO’s net profit increased by nearly 48% following rate increases. In the same year, its CEO made more than $15 million. Its reversal of a planned rate hike this month made evident that increased costs for ratepayers were never necessary to maintain safe and reliable service. Instead, it demonstrates that utilities are making extraordinary profits at the cost of working people and families.
“The system is rigged and has allowed corporate greed to go unchecked,” Fiedler said. “This legislation makes a necessary correction to the ratemaking process and prevents unjustified rate hikes when so many people are struggling.”
This bill is part of House Democrats’ energy affordability agenda, which aims to keep costs low, maximize grid efficiency, and put people before profit. See the details of the package here.