PA SB897

Allows electric distribution companies to petition the Pennsylvania Public Utility Commission to invest in new generation resources (natural gas, nuclear, battery storage, or alternative energy) when a resource inadequacy is demonstrated through reserve margin forecasts falling below target levels over a 10-year period.

Extends maximum long-term power purchase contracts from 20 to 30 years and removes the 25% cap, allowing contracts to cover up to 100% of a default service provider's projected load.

Creates a rebuttable presumption that resource inadequacy exists when reserve margins fall below targets, with the commission required to decide on petitions within 9 months or the petition is automatically approved.

Requires electric distribution companies to solicit competing proposals through requests for proposals before the commission approves either the utility's own generation project or a third-party proposal.

Establishes a nonbypassable surcharge mechanism for all customer classes to recover utility costs for new generation investments, with net revenues from wholesale market sales credited back to customers.