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FOR IMMEDIATE RELEASE |
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State Rep.
Camille "Bud" George |
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Hearing set on measure that would create power agency
to spur competition and lower electric prices
HARRISBURG, Jan. 15 – State Rep. Camille "Bud" George, head of the state House of Representatives’ Environmental Resources and Energy Committee, is unveiling competition-based legislation that would confront Pennsylvania’s skyrocketing costs of electricity.
"House Bill 1909 would ensure competition to benefit Commonwealth’s citizens and businesses," said Rep. George, D-74 of Clearfield County. "By creating a consumer-driven, public power agency, Pennsylvania would free itself from the yoke of a broken wholesale power market condemning us to double-digit rate increases."
The House Environmental Resources and Energy Committee will hold a public hearing on the legislation from 1-3 p.m. Wednesday, Jan. 20, in Room 140, the Majority Caucus Room.
Tentatively scheduled to testify at the Capitol hearing are:
● Tyrone Christy, vice chair, Pa. Public Utility Commission;
● Sonny Popowsky, consumer advocate of Pennsylvania;
● Steve Etsler, AK Steel Corp.
●Ray Landis, AARP Pennsylvania advocacy manager.
Endorsed by business and industry as well as consumer groups and advocates, HB 1909 would create an independent Commonwealth Energy Procurement and Development Agency to procure power, spur new generation and serve the Commonwealth’s 12.5 million citizens and businesses.
"States have learned that the power markets’ idea of competition is little more than a private enrichment scheme for large power companies," Rep. George said. "The current system has failed to induce competition, generation or reasonable and predictable power costs."
"The alternatives to a public power agency are massive, overnight rate increases throughout most of Pennsylvania, including an almost 30 percent rate spike already inflicted on PPL customers despite the historically low fuel costs and the severe economic downturn," Rep. George said. "Failure to control high and volatile energy prices will harm citizens and businesses already struggling in this difficult economy and drive more manufacturing jobs out of Pennsylvania."
Rep. George said the five-member agency representing citizens, business, industry and agriculture, would:
● Buy power as cheaply as possible from the wholesale market on behalf of commercial and industrial businesses and consumers who do not shop for power;
● Enter into long-term power purchase agreements to secure lower prices and relieve congestion by promoting construction of Pennsylvania-based power plants;
● Build or buy power plants to create real competition in the wholesale market that still lacks power plants even though it has been extracting steep generation-building incentive fees for years.
● Collect and distribute rebates to consumers from formerly regulated power plants, which have been reaping exorbitant profits and have been charging high energy and capacity prices even though ratepayers already paid for the plants.
Rep. George said AARP and the Industrial Energy Consumers of Pennsylvania – representing energy-intensive businesses such as Proctor & Gamble, Alcoa and US Steel that employ more than 43,000 Pennsylvanians -- are backing creation of the power agency though HB 1909.
Twelve states have differing versions of public power agencies, including Illinois, which was able to provide lower prices and $1 billion in rate relief, and Maryland, which approved a $2 billion rebate after it opted to buy electricity and build generation.
"Utilities are not interested in increasing supplies and risking their higher, often record, profits," Rep. George said. "The hallmarks of PJM Interconnection, which markets wholesale power in all or parts of 13 states, including Pennsylvania – are a lack of transparency, barriers to competition, high administrative costs and a flagrant disconnect between the costs of electric generation and the prices it charges."
Rep. George said deregulation was supposed to lower prices and spur competition, prompting companies to build generating plants. However, none has occurred.
An industry looking to stay or locate in the Met-Ed service territory faces the prospects of an almost 30 percent increase. Industries in the Penelec service area face an increase of 25.4 percent, based on the most recent data.
"Unless Pennsylvania takes hold of its energy future with an independent power agency, the future is bleak," Rep. George said. "Without action, most Pennsylvanians face double-digit rate increases, the specter of even higher prices, loss of good manufacturing jobs, and more barking by utility shills that its singular definition of competition is working despite ample evidence otherwise."
Rep. George released a detailed report on electric deregulation and its ramifications for Pennsylvania. The report, "Failed Experiment," is available on Rep. George’s Web page, www.pahouse.net/george.
Pennsylvania utilities, representing more than 80 percent of the state’s electric customers, and their rate-cap expirations, are:
● PPL, Dec. 31, 2009;
● Allegheny Energy, Dec. 31, 2010;
● FirstEnergy/Penelec, Dec. 31, 2010;
● FirstEnergy/Met-Ed, Dec. 31, 2010;
● PECO, Dec. 31, 2010.
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CONTACT: Matthew Maciorkoski |