Press Release

PUC Releases Text of Letters to Employees About Suspension of Longevity Increases, Lump Sum Payments Expected in January

Published on 12/23/2008

Filed under: Electric Gas Water and Wastewater Telecommunications Transportation and Safety

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today released the text of the letter sent to 182 management and non-represented employees recently notifying them that the Commissioners suspended longevity increases and lump sum payments expected in January.  The other 300-plus PUC employees will receive their longevity increases/lump sum payments per union contracts.  The text of Chairman James H. Cawley’s letter follows:

 “As you know, the Commonwealth of Pennsylvania is facing serious economic challenges as a result of a very large deficit in state revenues.  In response, Governor Rendell has taken a number of cost saving measures, including the imposition of a hiring freeze and a curtailment on out-of-state travel.  Most recently, the Governor announced that 13,000 Commonwealth managers and non-represented employees would not receive their 2.25 percent longevity increases and lump sum payments slated for January.  Governor Rendell has asked independent agencies to follow his example. 

 “This letter is to inform you that my colleagues and I have reluctantly decided to suspend these increases as well.  In making this decision, we also agreed that we will not accept our annual cost of living adjustment in January.  If the situation improves during 2009, we will revisit this issue with the idea of exploring whether all or some of your planned increase may be implemented.  I would have preferred to talk with you personally about this; please accept this letter as a reasonable way of conveying our decision to you.

 “We recognize that our decision to forego the planned increases for now does not help with the Commonwealth’s budget because we are funded by assessments on public utilities.  Nonetheless, it is important that our agency make this sacrifice.  Public utilities are permitted to recover their assessments from consumers; both public utilities and their consumers are also adversely affected by the current economic situation.  By spending less money during this fiscal year than we were approved to spend, we will be able to offset next year’s assessments by this amount.  So, in a very real way, we will be 'doing our part' to somewhat ease the economic challenges being faced by the Commonwealth. 

 “Please know that we did not make this decision lightly.  We appreciate the fine work you do for the people of Pennsylvania, and we look forward to healthier economic times when we can better convey our appreciation to you.”

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.

Contact:

• Press Secretary
  717-787-5722
  
• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov