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FOR IMMEDIATE RELEASE |
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State Rep.
Camille "Bud" George |
  
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Rep. George salutes governor’s commitment to rate shock relief
HARRISBURG, Oct. 16 – State Rep. Camille "Bud" George, chair of the House Environmental Resources and Energy Committee, today applauded Gov. Edward G. Rendell’s determination to protect Pennsylvanians from catastrophic electric rate increases.
"The governor has made it clear that rate mitigation is urgent," said Rep. George, D-74 of Clearfield County. "Compounding the economic downturn with double-digit, electric-generation rate increases would doom Pennsylvania to economic backwaters for decades."
At a ceremonial signing Wednesday of Rep. George’s House Bill 2200, Gov. Rendell said he was "deeply disappointed" that a rate-mitigation proposal did not advance.
"Electricity consumers are facing rate increases of between 20 and 60 percent once caps come off, and that is unacceptable," the governor stated. "I will not stand by while the utilities pursue record-breaking profits on the backs of our families and businesses."
Rep. George said he has one bill ready and another being drafted to mitigate both the short- and long-term consequences of massive rate increases.
"If the Legislature has not learned the lessons from the 12-year nightmare of deregulation in Pennsylvania, my Special Session House Bill 54 would extend the rate caps for another two years and give lawmakers time to bone up on remedial economics," Rep. George said. "Coming early next session is legislation that would protect electric users over the long term and bolster the Commonwealth energy portfolio with a Pennsylvania Power Authority."
Rep. George said the duties of the power authority would include:
● Entering into long-term power agreements to facilitate construction of state-based power plants;
● Securing power supplies for Pennsylvania’s electric distribution companies for allocation to customers;
● Acquiring interest in existing and new power plants in Pennsylvania;
● Allocating rebates to distribution companies and consumers based on exorbitant "capacity charges" by electric generation companies for guaranteeing power during periods of peak demand;
● Managing power acquisition for distribution company customers unable or unwilling to secure alternate suppliers.
"The Pennsylvania Power Authority Act will mirror what was done last year in Illinois, where deregulation socked consumers with increases ranging from 26 to 55 percent," Rep. George said. "Pennsylvania will have the opportunity to do the same for its citizens by protecting them from a deregulated and broken electric-generation market."
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Rep. George said HB 2200 represents a critical achievement in the road to energy independence by requiring utilities to reduce overall and peak demand output, offering off-peak rates and implementing smart meters," Rep. George said. "However, time is running out for Pennsylvania to avoid an economic coma from rate shock, which will begin strangling the Commonwealth in less than 15 months."
Pennsylvania utilities, representing more than 80 percent of the state’s electric customers, their scheduled rate-cap expirations, and their projected rate increases are:
● Allegheny Energy, Dec. 31, 2010, 63 percent;
● PPL, Dec. 31, 2009, 37 percent;
● FirstEnergy/Penelec, Dec. 31, 2010, 50 percent;
● FirstEnergy/Met-Ed, Dec. 31, 2010, 54 percent;
● PECO, Dec. 31, 2010, 20 percent.
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CONTACT: Matthew Maciorkoski |