In response to the thousands of complaints statewide about skyrocketing electric rates for those individuals who entered into variable rate contracts with their electric generation supplier, the House Consumer Affairs Committee will hold a public hearing in March to gather more information on the issue, said Rep. Matt Baker (R-Tioga), who is also a co-sponsor of comprehensive legislation to address consumer concerns.

“Within the past few weeks, my office has received numerous inquiries about recent increases in some area consumers’ electric bills,” said Rep. Baker. “This spike is a result of the variable rate charged by electric generation suppliers. Although this seems to be the result of the specific types of contracts these consumers entered into, we need to make sure consumers are not experiencing price gouging and that utility companies are operating above board.”

The House Consumer Affairs Committee will be looking into this matter by holding a public hearing on March 20. From testimony gathered at that hearing, lawmakers will be able to see if legislation would help correct this situation.

In addition, Rep. Baker is co-sponsoring a bill that would address recent concerns by requiring that specific information be contained in all supplier contracts and that this information is provided in an easily readable and understandable manner.

The bill also would place a cap on the amount by which a rate may change under a variable rate contract, prohibit cancellation and early termination fees for variable rate contracts, require the posting of current and historic rates on the PA Power Switch website and reduce the amount of time it takes to switch electric generation suppliers.

Rep. Baker said he cannot stress enough being fully aware and reading the “fine print” before entering into any agreement. Variable or adjustable rates in any type of contract mean savings in good times and an added expense in difficult circumstances. The winter weather being experienced now is different than in recent years, but an example of what can happen.

If a consumer believes he or she is paying a rate that is inconsistent with his or her supplier contract, please contact the supplier and attempt to resolve the issue. If the supplier is unable to resolve the complaint or is unresponsive, go to www.puc.state.pa.us to file a complaint with the Public Utility Commission or call 1-800-692-7380.

If a consumer believes the competitive supplier has violated Pennsylvania’s Unfair Trade Practices and Consumer Protection law or has engaged in price gouging, go to www.attorneygeneral.gov to file a complaint with the attorney general’s office or call 1-800-441-2555.

The hearing on March 20 will begin at 9:15 a.m. at the state Capitol in Harrisburg. Interested individuals can watch the hearing live at www.RepBaker.com. The hearing will also be recorded and posted on Baker’s website for later viewing.

NewsClips:

AG Probing Spike In Electric Bills

Attorney General Investigates Spike In Electric Bills

Electric Rates Steady For Some, Not Others

3/3/2014