State Lawmakers Want To Lower Electric Bills. The Budget Impact Might Be Too Big To Swallow.

Responding to public anger over soaring energy costs, Pennsylvania lawmakers in both parties have voted in support of a massive tax cut that would lower electric bills for customers across the state — although they have said little publicly about how to pay for the $1.7 billion hole the measure would create in the budget.

Legislators in both parties are touting it as the largest tax cut in Pennsylvania history, although it’s not clear whether it will actually become law.

The proposed change would eliminate a 5.9% state tax on the sale of electricity. It would take effect immediately and apply to all customers, including businesses and nonprofits. Utilities would be required to pass the savings on to customers or face fines.

The state House, where Democrats have a narrow majority, passed the measure unanimously last week as part of a bill that would dramatically change the way utility profits are regulated. House Republicans criticized the changes to utility regulation, but voted in favor of the legislation after it was amended to include the tax cut.