Published October 1st, 2026
By Richard C. Culbertson, Senior Fellow of the Asset Leadership Network and Asset Management Expert
Main points:
Governor Shapiro believes the rate-making process is broken – it is. Pennsylvania utilities receive about $32 billion annually from customers.
PAPUC has a major non-compliance problem. It has not complied with the Pennsylvania Constitution, which requires audits of the Pennsylvania Public Utility Commission since 1968. Art. VIII, S 10. Audit (Passed in 1968): Commissions … shall be subject to audits made in accordance with generally accepted auditing standards.
Ratemaking is more theater than a reliable process to produce just and reasonable rates– the PUC does not perform financial audits of public utilities.
The PUC has not recognized and does not comply with Federal requirements that come with grants: 2 Code of Federal Regulations (CFR) 200 —UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS. (2014)
Customers will not have just and reasonable utility rates without significant corrections to and by the PAPUC.