HARRISBURG, Pa., Aug. 8 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell said a decision by the Public Utility Commission today approving PPL Electric Utilities Corporation's rate stabilization plan reinforces the need for legislative action this fall to protect consumers from the double-digit increases that are expected once rate caps expire.
Under the company's plan, PPL's customers will be allowed to pay extra for electricity service as a means of off-setting part of the rate increase it expects to implement on Jan. 1, 2010. The increase is expected to be at least 34 percent for residential customers and likely higher for businesses.
"While this plan gives consumers another choice in how to manage their electricity bills in the short run, it does not take away from the fact that, before you know it, Pennsylvania's families and businesses will be paying substantially more for electricity," said Governor Rendell. "Energy prices are going up, but the longer we wait to act, the more difficult it's going to be to give consumers real relief.
"It is imperative that we pass legislation this fall to mitigate these rate increases and give ratepayers more options to lower their energy consumption by using electricity more efficiently. The measures the legislature passed and I signed last month are a good first step, but we must move to correct the shortcomings of deregulation and electricity policy in Pennsylvania. Otherwise, families are going to lose their homes and businesses will shut their doors because they can't pay their electricity bill."
The Governor renewed his call for the legislature to pass House bills 2200 and 2201, and renewed his commitment to work with the legislature throughout the summer to reach an agreement on these measures to protect consumers from the pending electricity rate spikes.
H.B. 2201, which is awaiting a vote in both chambers, will change PUC requirements so that utilities must provide service for customers at the lowest reasonable rate. The bill will require utility service providers to buy power through a mix of short- and long-term contracts and spot market purchases, and obligate the PUC to ensure that the procurement process is free of fraud, collusion or market manipulation.
H.B. 2200 was passed by the House on Feb. 12 and will help consumers save on their energy bills through conservation and using electricity more efficiently. Once fully implemented, H.B. 2200 will save consumers $1.3 billion by 2012 through conservation and bringing down the cost of electricity during peak load times -- when demand is highest and electricity is most expensive.
Governor Rendell signed three pieces of energy legislation last month that will invest up to $665.9 million, of which $237.5 million is specifically targeted towards helping consumers conserve electricity and manage higher energy prices and $428.4 million to spur the development of alternative energy resources and create at least 10,000 good-paying jobs in these industries.
For more information on House bills 2200 and 2201, as well as the state's new alternative energy funding opportunities, visit www.depweb.state.pa.us, and click on the "Fueling Energy Savings" icon.
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses.To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit www.governor.state.pa.us.
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