Electric rate cap mitigation and energy conservation were the subjects of a House Republican Policy Committee hearing hosted by state Rep. Tom Quigley (R-Montgomery) and held at Montgomery County Community College in Pottstown.

Testimony was offered by representatives from Philadelphia Electric Company, Public Utility Corporation and BioChem Technology Inc. from King of Prussia.

"My staff has for several years been very proactive in trying to prepare for and educate the public about the removal of rate caps, some of which have already taken place," said Robert Powelson, commissioner of the PUC. "Independently, consumers can take several steps before the expiration of the caps that may help them control the size of their electric bills. Energy conservation is a key."

Powelson expressed disappointment over the recently passed state budget, which failed to include a PUC request for $5 million to be spent on a statewide consumer education plan aimed at preparing the public for the expiration of rate caps. He hopes the General Assembly will take up the proposal during the upcoming fall session.

Powelson also referenced the need to further explore clean coal and nuclear technology, pointing out in particular Pennsylvania's failure to make progress in bringing more nuclear plants on line. He said the commission has evaluated states like Maryland and Texas that have gone through similar lifting of caps and is trying to avoid the mistakes made in these instances.

There has been a call for an extension of the rate caps. Lisa Crutchfield, senior vice president of Regulatory and External Affairs for PECO, testified as to the magnitude of the mistake such a move would be, citing the example of California's extension of caps in 2000-01.

"The [California] extension contributed to rolling brownouts and some blackouts, the bankruptcy of one of the state's utilities and the near bankruptcy of the other, higher electricity prices for consumers, and the public's loss of confidence in the state's governor," commented Crutchfield. "Moreover, a rate cap is unconstitutional, and utilities would be forced into lengthy and costly legal battles that could mean additional costs for customers."

She said the lifting of caps will result in competition among electric suppliers and mentioned the high number of utility companies that have flooded the market in Texas, resulting in lower prices for consumers.

Fifty percent of every Pennsylvania municipality's electrical energy is used to process wastewater, according to Allen Twiford, sales manager for BioChem Technology. He testified about his company's work in helping treatment plants maximize efficiency while cutting costs.

Copies of testimony should be posted on the House Republican Policy Committee website.

8/1/2008