Press Release

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) heard from consumer advocates and industry experts on the issues and possible policy actions that could mitigate potential future significant price increases in electricity prices.

“Today is a first step.  It will not be the only step.  This Commission will continue to address this energy crisis aggressively, responsibly and in a timely manner,” said Commission Chairman Wendell Holland in a statement.  “It is up to all of us to prepare now to protect our customers from the brunt of possible price spikes. By evaluating the possible policy actions that would mitigate prices for consumers, this Commission is acknowledging what is going on around us and preparing now.”

Commission Vice Chairman James Cawley said: “Competitive markets don’t happen on their own. They take work on the part of the utilities, electric generation suppliers, consumer advocates, and this Commission. Today we begin that process, moving forward by bringing all parties to the table to better address consumer education requirements, develop strategies to remove barriers to retail choice and implement default service pricing that reflects prevailing market prices.”

Commissioner Bill Shane said in a statement: “Today we begin a process of balancing how we expose customers to the realities of current market prices with the availability of competitive electric generation suppliers. I believe the purpose of regulation is to enable capitalism to live up to its own pretensions and rhetoric I believe markets are useful allocative tools, not objects of worship. Markets can fail and be manipulated. That’s something we must keep in mind as we move through this process.”

Commissioner Kim Pizzingrilli said: “Our hearing today begins our dialogue on this important and complex topic that will require a great deal of consideration and debate.  I look forward to working on this matter so as to ensure that the public interest is protected as we transition into a fully competitive market.  With that said, today's testimony, the filed comments and the reply comments, which are due on July 20th, will serve to assist the Commission in addressing these challenges.”

Commissioner Terrance Fitzpatrick, who sponsored the motion that initiated this process, said: “Combating potentially significant electricity price increases at the expiration of rate caps approved under electricity restructuring proceedings presents difficult policy choices – choices that will not be any easier if we wait until the reality of higher prices is upon us. By engaging all of the stakeholders in this process, the Commission will have a wide knowledge base to draw from in advance of any possible action. Pennsylvania is in the position of having some additional time to address this important issue for most consumers. By preparing now, this Commission can best fulfill its duty to protect the public interest.”

More than 30 parties filed comments with the Commission prior to the hearing regarding ideas to assist in addressing potential significant price increases. The Commission may use the information gathered during this process as a basis for action.

Four panels presented testimony during the hearing from the perspective of consumers, utilities, electric generation suppliers and alternative energy interests. Those presenting testimony included:

Office of Consumer Advocate

Office of Small Business Advocate

Allegheny County

PJM Interconnection, L.L.C.

Industrial Energy Consumers of PA

PennFuture

United States Steel Corporation

Edison Electric Institute

Energy Association of Pennsylvania

Allegheny Power

Duquesne Light Company

PECO Energy Company

PPL Electric Utilities Corporation

Constellation NewEnergy, Inc.

Direct Energy Services, LLC

Electric Power Generation Assoc.

Hess Corporation

National Energy Marketers Assoc.

Retail Energy Supply Assoc.

Reliant Energy Inc.

Strategic Energy, LLC

PA Dept. of Environmental Protection

TBG Consulting

Citizen Power

Customized Energy Solutions, Ltd. 

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