Robbins Urges Action in Wake of Penn Power Rate Increase

Harrisburg – State Senator Bob Robbins (R-50) today called for the Pennsylvania Public Utility Commission (PUC) to provide the legislature with input on what changes need to be made to Pennsylvania's electric competition law in the wake of a rate hike by Penn Power Electric.

"It is clear to me that we must revisit the issue of electric restructuring and determine what changes need to be made," Robbins said. "I urge the PUC to offer input on any legislative changes that would help consumers by bringing some stability to electric rates."

In a September letter to the PUC, Robbins urged the PUC to take immediate action to help Penn Power consumers if a large increase became a reality. The Senator added that he is concerned that a rate jump will hurt local employers that have to compete with companies in counties where capped 1997 rates remain in place.

"The reality is that the household budgets of my families and seniors will find it difficult to absorb an immediate 32 percent increase in their electricity bills," Robbins said.

Robbins said the time has come to take another look at the law passed 10 years ago restructuring Pennsylvania's electricity regulations, when Pennsylvania's electric rates were 15 percent higher than the national average.

Recently, the Senator met with Wendell F. Holland, Chairman of the PUC, to discuss the Penn Power rate filing and options that may be available to customers in the Penn Power service such as how the PUC could be involved in educating consumers on energy conservation; providing information to groups or organizations in seeking better electric rates during this period of electric competition; and increased competition in the electric market place.

Robbins also asked the PUC to take immediate actions by:

Reviewing the auction process that Penn Power purchased its electricity to sell to customers, taking another look at the auction results and the prices presented by Penn Power.
Exploring innovative programs, such as payment options or additional power auctions, to assist Penn Power customers during the period of rate increases.

Robbins previously wrote to the PUC urging it to hold a public hearing in the region after National Fuel filed a request for a rate increase. The hearings were held this summer and the PUC is currently reviewing an agreement between National Fuel and the PUC law judge that would remove the controversial decoupling provisions of the proposed rate filing.

Senator Robbins has also been actively involved in other energy related issues such as introducing Senate Bill 1270, the Home Energy Assistance in Time of Need – or HEAT ON – Act. This legislation would maximize the use of federal Low Income Home Energy Assistance Program (LIHEAP) dollars and ensure that heating aid reaches as many Pennsylvania families as possible.

CONTACT:

Mike Hengst
(717) 787-1322