Press Release

PUC Seeks Public Comment on Three Issues as Part of Overall Strategy for Addressing Electric Generation Rates (continued)

Published on 2/8/2007

Filed under: Electric

PUC Seeks Public Comment on Three Issues as Part of Overall Strategy for Addressing Electric Generation Rates (continued)

Policies to mitigate potential electricity price increases

              On May 19, 2006, the Commission began a process that may lead to the development of policies to mitigate higher electricity prices. Most Pennsylvania electricity consumers are paying capped generation rates and will continue to do so until the end of 2009 or 2010. Recent events in Pennsylvania, Maryland and Delaware have shown that consumers of electricity can be exposed to sudden dramatic price increases when long-term generation caps expire. The long-term caps were agreed upon during state restructuring proceedings.

      More than 30 parties filed comments with the Commission regarding ideas to assist in addressing potential significant price increases. The proposed policy changes and plans for future action include:

• Initiating statewide and utility specific consumer education campaigns to educate consumers about the real price of electricity, responsible energy usage and alternative electric generation suppliers;
• Developing recommendations for alternatives to mitigate abrupt price increases that include final development of the default service regulations;
• Examining energy efficiency, conservation and demand side response. On Sept. 28, 2006, the Commission initiated an investigation into cost-effective and reasonable efforts that electric utilities can take to help consumers conserve energy and use it more efficiently. Further recommendations in these areas are expected this spring;
• Improving low-income programs. The Commission proposes to become more of an advocate for state funding of the Low Income Home Energy Assistance Program (LIHEAP). The Commission also will continue with a rulemaking to modify its Customer Assistance Program rulemaking and policy statement; and
• Continuing active participation before the Federal Energy Regulatory Commission on wholesale market issues.

The Advanced Notice of Final Rulemaking and the proposed policy statement will be docketed separately at the Commission. In both cases, interested parties have until March 2, 2007 to file comments. Reply comments to both are due by March 23, 2007. The comments will be posted to the PUC Web site at www.state.pa.us.

An original and 15 copies of comments or reply comments should be marked with the appropriate docket numbers for either the Advanced Notice of Rulemaking or the proposed policy statement and submitted to:

Pennsylvania Public Utility Commission

Attention Secretary

P.O. Box 3265

Harrisburg, PA  17105

Comments on the proposed policies to mitigate potential electricity price increases are due 20 days after the entry of the Order.

All comments also should be marked with the appropriate docket numbers and submitted electronically to Shane Rooney at srooney@state.pa.us. Attachments may not exceed 3 megabytes.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner. For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket No. L-00040169; L-000 ; M-00061957

Contact:

• Press Secretary
  717-787-5722