Pennsylvania’s Wrong Fix for ‘Broken’ Power Utilities

When the governor of a big state lambasts your industry in public, you may legitimately worry. But when that governor starts talking rate-of-return calculations — quoting basis points — well, take cover.

Pennsylvania Governor Josh Shapiro’s recent open letter to utilities informed them that their “model is broken.” His solutions center on the arcane process by which they earn profits. Questioning utilities’ profit margins is good politics amid a backlash against rising power bills, linked to the equally contentious expansion of data centers. In terms of addressing the main issue — how to affordably fund investments in grid infrastructure — Shapiro misses the mark.