Gov. Josh Shapiro often talks about “energy affordability.” It’s a phrase that shows up in his stump speeches and his attacks on PJM and utility companies whenever electricity bills come up.

But the governor’s political theater won’t lower utility bills.

In fact, basic supply-and-demand economics suggest otherwise. The surging demand from data centers, electric vehicles, and the onshoring of manufacturing have pushed our grid to the brink. Meanwhile, government policies have artificially suppressed supply. State mandates and yearslong entanglements in carbon-tax schemes have stunted in-state generation and dried up investment for years.

If affordability is genuinely Shapiro’s priority, he should champion a policy that would reduce electricity bills for every home and business: He should propose ending Pennsylvania’s gross receipts tax (GRT) on electricity.

Pennsylvania levies the GRT on the profits of utility companies and generation companies, which then is passed on directly to consumers. Eliminating this tax would put real money back in Pennsylvanians’ pockets immediately, without a single regulatory proceeding or a yearslong infrastructure buildout.

The GRT is exactly the kind of embedded cost that most consumers never notice. In some parts of the state, it doesn’t show up as a line item on your bill. It’s often baked into base rates. Most Pennsylvanians paying this have no idea.

And this payment is far from trivial. Last year, Pennsylvania collected $619 million in GRT. Next fiscal year, the commonwealth projects to take in about $659 million. That works out to be about $51 per person, or more than $200 in annual savings for a family of four.

To be sure, Shapiro cannot do this alone. The GRT is statutory, meaning abolishing it would require the General Assembly to pass a bill. A few years back, the Pennsylvania Senate voted to eliminate the GRT by a wide margin, but the bill stalled out in the state House.

Legislative inaction notwithstanding, Shapiro continues to send all the wrong signals.

For example, Shapiro scared away investment with his support of the Regional Greenhouse Gas Initiative (RGGI). In 2023, the Commonwealth Court ruled that Pennsylvania’s RGGI membership constituted an unconstitutional tax. But despite criticizing RGGI in the past, Shapiro appealed the decision, prolonging the protracted legal battle. In the end, Shapiro had to abandon RGGI, but the damage was already done: Pennsylvania’s six-year entanglement with the carbon-tax scheme cost the commonwealth nearly $5 billion in new energy investment. That’s enough new generation to power the city of Pittsburgh. Instead, Pennsylvania and neighboring states are facing a growing reliability emergency. The regional grid operator is warning of electricity shortages as early as 2027.

Instead of reducing the government’s cut from electricity consumers, the governor prefers the blame game. According to him, PJM and the greed of utility companies are to blame for rising costs. In fact, he’s dedicated an unhealthy amount of energy to filing lawsuits and threatening legal action against the grid operator and the companies that power it.

Shapiro also recently appointed his very own energy affordability czar, Mark Szybist, to “hold utility companies accountable” and stop them from “jacking up rates.” For more than two decades, Szybist served as a hired gun for the green-energy lobby, advancing the very policies that continue to drive up electricity costs–everything from RGGI to statewide “net-zero” goals.

To make matters worse, Shapiro has also proposed his “Lightning Plan.” This hodgepodge of Green New Deal-style mandates and taxes will double household electricity bills over the next 10 years, according to analysis by the Commonwealth Foundation.

If affordability is his destination, Shapiro isn’t even taking the scenic route; he’s driving full speed in the opposite direction. Rather than double down on Green New Deal-style policies, Shapiro would be better off taking a more pragmatic approach–one that chips away at the countless hidden costs in Pennsylvanians’ utility bills. The GRT is one of many.

Affordable energy will never arrive via energy czars, taxes, and mandates. State policies that position Pennsylvania as a welcoming state for new generation are essential to solving the current affordability crisis. But it takes time to build a power plant. In the short term, cutting government taxes on electricity can bring quick and meaningful relief to all Pennsylvanians.

Elizabeth Stelle is vice president of policy at the Commonwealth Foundation.