Press Release

PUC Commissioner Shane Testifies Before State House Committee

Published on 11/1/2005

Filed under: Electric Gas

    HARRISBURG – Public Utility Commissioner Bill Shane today testified as part of the House Environmental Resources and Energy Committee’s informational meetings on a long-term energy strategy for Pennsylvania and emphasized the role the Commission plays in consumer protection.

    “It is the Commission’s responsibility to ensure that energy is delivered safely and reliably to homes and business of the Commonwealth,” Commissioner Shane testified. “We must ensure that electric and natural gas utilities acquire supply in a reliable and least cost manner.  Lastly, I’d like to emphasize the consumer protection role this Commission plays in its role as an important liaison for consumers in dealing with the Pennsylvania utilities.”

    In looking to the future, Commissioner Shane emphasized the importance of the coal industry and Integrated Gasification Combined Cycle Technology (IGCC), which uses clean coal technology to achieve the environmental benefits of natural gas electric generation with the lower costs associated with coal.

    “In my opinion, super clean coal gasification technology is Pennsylvania’s energy trump card for the 21^st Century,” the Commissioner said. “With Integrated Gasification Combined Cycle Technology, we can generate electricity cleanly and produce synthetic gas economically at $6 per MCF, which is half the present price of natural gas.”

    Commissioner Shane said the state is fast approaching the end of rate caps for the electricity utility industry that have shielded consumers from the cost increases associated with the generation of electricity. The state’s consumers are already facing the rising costs of natural gas.

    The Commission needs to examine a number of issues including:

• Expanding funding mechanisms for Consumer Assistance Programs (CAP), as well as the Low-Income Usage Reduction Program (LIURP), consistent with the important objectives of improving energy efficiency and decreasing overall energy prices and foreign dependence on energy. 
• Expanding the use of and availability of cost effective time-of-use metering equipment and information, and developing pricing structures that reflect the true market cost of energy in order to more effectively promote efficient use of electrical energy.
• Encouraging the development of demand side response programs.
• Promoting consumer education on energy efficiency and demand side management programs, low-income programs, and retail choice programs.

    Commissioner Shane, who also served at the PUC from 1977 to 1990 as an Administrative Law Judge, Commissioner and Chairman, was instrumental in creating the LIURP program which provides low-income consumers with the tools they need to weatherize their homes, improving their energy efficiency. He also prompted the “second chance payment arrangement”, which says that the PUC can establish one payment arrangement with a consumer regardless of any previous payment arrangement made between the customer and the utility company. It was approved by the PUC October 27, 2005.

    During his testimony Commissioner Shane also called for support of the Governor’s proposed $15 million state contribution to the federal Low-Income Home Energy Assistance Program (LIHEAP) – something he also called for in 1984.

    “In response to price increases, the PUC has taken its important role as a protector of consumer rights seriously, and ensured that consumers have a right under appropriate circumstances, to a Commission approved payment plan – also known as the second chance payment arrangement,” Commissioner Shane said. “Secondly, we continue to play an important role in enforcing critical service termination laws and billing rules – and have punished utilities that we feel have not played by the proper rules.”

    In addition, the Commission has developed, with input from the state's Office of Consumer Advocate, the natural gas industry, the Public Utility Commission's Consumer Advisory Council, community-based organizations and other state agencies, a “Prepare Now” for winter campaign, where consumers can find important information about energy conservation, budget billing programs, low-income assistance programs, and current energy prices.

    The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

    For more information about the PUC and additional press releases, visit our website at www.puc.state.pa.us.

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