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PUC Chair Opposes Creation Of State Power Authority

In a hearing before the Senate Consumer Protection and Professional Licensure Committee this week, Public Utility Commission Chair James Cawley called a proposal to create a PA Power Authority-- House Bill 1909 (George-D-Clearfield)--  "a silly idea" that is completely unneeded.
            Cawley said getting the government in the business of building power plants would nullify the benefits of electric deregulation because it places all the risks of generation back on taxpayers.
            In response to questions by Sen. Boscola (D-Lehigh), Minority Chair of the Committee, Cawley said 28 percent of electric residential customers and 53 percent of business customers switched to an alternative electric supplier after the rate caps expired in PPL service territory in December.  He called the switches a success.
            PUC Commissioner Ty Christy said electric ratepayers "got lucky" when electric rates expired because the economic downturn mitigated potential rate shock on consumers.
           James Creedon, Secretary of General Services, said Commonwealth agencies have reduced their electric use by 20 percent in the last seven years saving $2.4 million annually in electric costs and 40 percent of the energy they now purchase is from alternative green sources.
            Sen. Tommy Tomlinson (R-Bucks) serves as Majority Chair of the Committee.


4/19/2010

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