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Opinion - Pennsylvania’s Energy Bill
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By Sen. Rob Wonderling (R-Montgomery)

I recently spoke to a constituent from Montgomery County who expressed concern about the increasing cost of her electric bill. I share her concern. In the coming years, rate caps placed on electric utilities across the Commonwealth will be statutorily removed and price increases in the range of 25 to 35 percent are expected. To make matters worse, the removal of rate caps is only one aspect of a price forecast that may include increases in generation rates and costs due to needed environmental air quality improvement requirements.

As a public servant, I believe we must ensure that all Pennsylvanians have access to reliable and affordable energy. I believe we must also be looking at ways to promote energy that is clean and minimizes the harm to our environment.

Today some 55 percent of Pennsylvania’s electricity comes from coal. Another 35 percent comes from nuclear power, roughly 5 percent from natural gas, and the remainder comes from so called “alternative energy”, such as hydro, wind, and solar. Alternative energy is defined as renewable energy sources, such as wind, flowing water, solar energy and biomass, which create less environmental damage and pollution than fossil fuels, and offer an alternative to nonrenewable resources.

This fall, the Pennsylvania legislature will be discussing the increasing cost of energy and the need to use more alternative energy sources.

The Rendell Administration has put forth a proposal to issue $850 million in new debt to promote selected alternative energy businesses, primarily focusing on solar energy. To pay for the new debt, the Governor proposes to impose a tax, termed a “systems benefit charge”, on consumers’ energy bills, ranging from roughly $6 a year for residential consumers to an average of $85 per year for small businesses, with a cap of $10,000 for large industries.

Since being elected to office in 2001, I have not voted for a tax increase and do not intend to support this tax in the face of upcoming rate increases. I also have grave concerns about issuing more debt on the backs of our kids, and unfairly driving the market into one direction (solar) at the expense of other potential future energy sources. Pennsylvania should diversify its energy portfolio, not choose one sector over another.

I believe government should establish, through investment and legislation, ways to stimulate new alternative energy research and development in the private sector as well as create incentives that promote promising technologies to commercialization.

Historically, Pennsylvania has been an energy net exporter, principally of power produced by coal. Thanks to the latest technology, today’s new coal plants are 90 percent cleaner than those built in 1970, when the Clean Air Act was enacted.

Notably left out of the Governor’s proposal was any mention of clean coal technology. I believe any discussion of Pennsylvania’s energy future must include coal and ways to promote emerging clean coal technology.

Pennsylvania’s businesses and families can also play a role in reducing energy prices by increasing our energy efficiency. Adopting some simple efficiency measures in our homes and business can help conserve energy and save money.

The Pennsylvania Department of Environmental Protection has some simple steps citizens can take to make a real difference in their energy bills each month. I encourage you to visit them at www.depweb.state.pa.us .

Sen. Rob Wonderling represents the 24th Senate District which includes parts of Bucks, Lehigh, Montgomery and Northampton counties and can be contacted through his website at: www.SenatorWonderling.com.


9/7/2007

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