Families facing substantially higher energy costs this winter are looking for help on how they can control their bills while staying warm, said Acting Department of Environmental Protection Secretary John Hanger this week as he outlined six measures to help consumers during a hearing of the state's Public Utility Commission.

Acting Secretary Hanger stressed the urgency of immediate action now because Pennsylvania's families and businesses will also soon face double-digit increases in their electricity bills, and that, he said, could be too much.

"We have all watched with increasing concern as energy prices across the board have risen rapidly during the past five years," said Acting Secretary Hanger. "This rising tide of costs threatens the well-being of our families and businesses. Add to this the electricity price shock coming with the end of rate caps over much of the state and the cost of energy will be a threat to the well-being of even more families and businesses."

Acting Secretary Hanger said there were six steps public officials, utility companies and consumers could take to reduce the impact of higher energy prices on budgets, the first of which should be conservation.

"In tight markets where supply is barely adequate to fulfill demand, small reductions in demand can lead to large reductions in price," said Acting Secretary Hanger. "For example, reduced demand is the principal reason why oil prices have now fallen from $147 on July 11 to less than $110 per barrel today."

Earlier in the week, Gov. Rendell told the House Environmental Resources and Energy Committee he is supporting two bills to held deal with the end of electric rate caps.

Under House Bill 2200 (George-D-Clearfield), the PUC would implement programs that encourage conservation and efficiency by every major rate class. Those programs could lead to more than $1 billion in annual savings by 2013.

House Bill 2201 (McCall-D-Carbon) would require electric utilities to procure the power they deliver to consumers using a portfolio approach to ensure service at the lowest reasonable cost.

"As Gov. Rendell said yesterday, on the issue of expiring rate caps, many have been frustrated by the level of inaction to date, so they're proposing an extension of those caps. The Governor would prefer not to go that route, but in the absence of action to protect consumers, a rate cap extension will become the most sensible option," said Acting Secretary Hanger.

"While the Commission has consistently refused to move toward a managed portfolio approach, we continue to believe that it is the best and most-flexible approach to minimizing the cost of retail electricity," said Acting Secretary Hanger, adding that while the PUC has rejected such an approach on the basis that it was too risky, it used in the natural gas industry. "The fact is that intelligently managed procurement can save money for consumers."

Acting Secretary Hanger also stressed the need to allow customers the ability to choose to phase-in pending electricity rate increases rather than facing the shock of higher utility bills all at once.

The state should also continue its efforts to deploy more renewable energy facilities, he added. These clean generation sources can be built quickly so they can generate electricity sooner.

Finally, Acting Secretary Hanger encouraged everyone to do more to help educate consumers and expand low income programs.

He praised the PUC for its “Prepare Now” effort to provide consumers with information on how they can deal with higher energy prices and noted that Governor Rendell will soon launch the fourth year of Stay Warm PA.

The initiative will offer tips to consumers on how to reduce their energy consumption, weatherize their homes, and it will provide access to financial assistance programs for low-income families and individuals.

"It is clear that time is running out," said Acting Secretary Hanger. "The longer we delay significant action, the longer it will take to get ahead of the coming electricity price spikes. There is time to act this fall so that we can get to work in the next few months. Failing this, we face an economic tragedy.”

NewsClips: State Natural Gas Heating Cost to Rise 18 Percent, PUC Says

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Governor May Seek To Extend Electric Rate Caps

Rendell Pushing For Action On Electric Rate Caps

Rendell Urges Law To Phase In Electric Rate Hikes

Electric Costs Apt To Soar In 2011

Rendell: Stagger Lifting Rate Caps

Links: Rendell Predicts Economic Fallout If Electric Rate Caps Issue Not Dealt With

PUC Holds Special Hearing On Winter Heating, Energy Prices

PUC Initiates Action Plan To Increase Natural Gas Competition

9/12/2008