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House Consumer Affairs Committee Holds Hearing On Municipal Electric Aggregation Bill
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The House Consumer Affairs Committee this week held a hearing to review a legislative proposal to allow local municipalities to supply electricity to residents and businesses at a reduced cost.
The bill, sponsored by Rep. Joseph Preston (D-Allegheny) Majority Chair of the Committee, would allow municipalities to adopt an ordinance to apply for an electric generation supplier license with the Public Utility Commission.
As suppliers, the municipalities would act as municipal aggregators, or buying groups, of electric generation supply service and provide purchasing power to residential and small business consumers in their municipal boundaries.
Rep. Preston said his bill has the potential to save residents and small business consumers millions of dollars in energy costs.
"This legislation is one of many options state lawmakers and industry experts need to review in anticipation of more rate caps coming off," Rep. Preston said. "My bill would provide consumers with another option as we move to a fully competitive market."
The bill would give residential or small business customers the right to opt out of the buying group to shop for other electricity suppliers on their own. Additionally, two or more municipalities would be permitted to act as joint aggregators to enhance and broaden the benefits of the program.
"I will be closely reviewing all of the input from the hearing before introducing the bill," Rep. Preston said.
These organizations offered testimony at the hearing: Public Utility Commission, Office of the Consumer Advocate, PPL Energy Plus, FirstEnergy Solutions, Electric Power Generation Association, Direct Energy LLC, ConEdison Solutions and Pennsylvania State Association of Boroughs. The following organizations submitted written testimony for the record: Pennsylvania Municipal Electrical Association, Duquesne Light Co., Dominion Retail and Constellation Energy Group.
More information is available at the House Consumer Affairs Committee webpage.
Rep. Robert Godshall (R-Montgomery) serves as Minority Chair.
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3/8/2010 |
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