On July 22 the House Environmental Resources and Energy Committee will hold a hearing in Monroeville on mitigating the impacts of electric rate caps that are due to expire in 2010.

Rep. Camille George (D-Clearfield) serves as Majority Chair of the Committee and Rep. Scott Hutchinson (R-Venango) serves as Minority Chair.

Tentatively scheduled to testify are: Tyrone Christy, commissioner, Pennsylvania Public Utility Commission; Ray Landis, advocacy manager, AARP-Pennsylvania; Terrance Fitzpatrick, general counsel, Electric Power Generation Association; David Hughes, executive director, Citizen Power; and Jay Apt, executive director, Carnegie Mellon Electricity Center.

"Unless Pennsylvania acts forcefully, the 700,000 customers of Allegheny Energy will be paying 63 percent more for power come January 1, 2011," said Rep. George. "The 63-percent increase is a conservative projection, and Pennsylvania needs to take action now to avoid this job- and family-destroying nightmare."

"Pennsylvania's electric deregulation scheme of 1996 has proven to be a hoax on consumers," said Rep. George, one of only 28 House members to vote against deregulation. "States that did not deregulate are enjoying cheaper power prices, and many states that were snookered into deregulation are now back-pedaling furiously."

Rep. George said Pennsylvania at the very least should consider extending the rate caps on electric generation. The rate caps were approved as part of a deal that has seen electric customers pay $12 billion in stranded costs for utilities' uncompetitive plants in deregulated markets.

"Utility profits are surging, and no one should be hoodwinked to believe that any utility will be at risk from policies that protect the Commonwealth's businesses and citizens," Rep. George said. "In less than 30 months, homeowners could pay $1.55 billion more -- and $2.5 billion more for commercial customers -- than what they are paying today for electricity."

Pennsylvania utilities, representing more than 80 percent of the state's electric customers, their scheduled rate-cap expirations, and their projected rate increases are: Allegheny Energy, December 31, 2010, 63 percent; PPL, December 31, 2009, 37 percent; FirstEnergy/Penelec, December 31, 2010, 50 percent; FirstEnergy/Met-Ed, December 31, 2010, 54 percent; and PECO, December 31, 2010, 8 percent.

"Areas of Pennsylvania where the rate cap expired have seen electricity charges jump by as much as 130 percent virtually overnight," Rep. George said. "The end of rate caps in deregulated states resulted in traumatic increases, including 72 percent in Maryland, 59 percent in Delaware and 82 percent in Texas."

Rep. George, whose Special Session House Bill 54 would extend electric-generation rate caps for at least two more years, said he is requesting subpoena power for additional hearings to be scheduled across the state.

"It is outrageous to allow double-digit rate increases when many utilities are showing record profits, competition remains a myth and consumers are being bludgeoned by high food and energy prices," Rep. George said. "The hearing will focus on the situation confronting us and what needs to be done before the rate increases hit."

The hearing will be held from 1:00 p.m. to 3:00 p.m. July 22 at the Comfort Inn Conference Center, 699 Rodi Road, Monroeville.

7/18/2008