The House Consumer Affairs Committee this week held a hearing on House Bill 1201 (George-D-Clearfield) that would make a number of changes to the Public Utility Code to implement, including electric competition, as recommended in the Gov. Rendell’s Energy Independence Initiative.

Presenting testimony were: John Hanger, President & CEO of PennFuture, PUC Commissioner James Cawley, Department of Environmental Protection Secretary Kathleen McGinty, Rebecca Bagley, Department of Community and Economic Development, Sonny Popowsky, PA Consumer Advocate, Bill Lloyd, PA Small Business Advocate, Michael Love, Energy Association of PA, Richard Hudson, Retail Electric Supply Association, Jack Crowley, Exlon Power – onbehalf of the Electric Power Generation Association.

John Hanger, President & CEO of PennFuture, said he supported legislation, saying, “Continuing business as usual, and not passing House Bill 1201 will also increase the chances of substantial electricity price increases in 2010 and 2011.”

He said the bill targets electric consumption during the 100 hottest hours of the year, when electric demand is the greatest, noting PJM Internection estimates that for every 1 percent reduction in demand during these times reduces peak prices by as much as 10 percent.

PUC Commissioner James Cawley, provided detailed comments on the legislation on behalf of the entire Public Utility Commission noting the legislation looks forward to the day when competitive suppliers will come back into Pennsylvania’s electricity market.

Kathleen McGinty, Secretary of the Department of Environmental Protection, provided an overview of the Governor’s Energy Independence Initiative.

Rebecca Bagley, Department of Community and Economic Development, provided a summary of the elements of the Governor’s Energy Independence Initiative designed to promote the development of renewable energy resources.

Sonny Popowsky, PA Consumer Advocate, provided an overview of Pennsylvania’s competitive market for electricity similar to the presentations he has given other committees over the past two years.

Bill Lloyd, PA Small Business Advocate, said the provisions of the bill that shifts from the current “prevailing market prices” policy to a portfolio is like to produce electric rates that change too frequently and too dramatically. He noted small commercial and industrial customers were likely to see rates change four times a year.

Michael Love, Energy Association of PA, again expressed concerns that House Bill 1201 and other proposed legislation to not adequately provide for electric reliability and offer, at times, conflicting priorities.

Richard Hudson, Retail Electric Supply Association, urged the Committee to consider the advantages of a competitive electricity market that draws competing electric suppliers. The Association agrees with the goals of Gov. Rendell’s energy initiative, but disagrees that legislation is necessary to accomplish those goals.

Jack Crowley, Exlon Power – onbehalf of the Electric Power Generation Association, said Pennsylvania needs to continue to pursue the development of a competitive retail and wholesale electricity market to ensure Pennsylvania’s energy needs.

Rep. Preston (D-Allegheny) serves as Chair of the House Consumer Protection Committee and Rep. Godshall services as Minority Chair.

NewsClip: Energy Efficiency, Rate Caps on Collision Course

6/15/2007