Electricity Deregulation Blog

HARRISBURG – A veteran House lawmaker is renewing a push for a bill to give the state a greater role in stabilizing electric rates and building new power plants.

The House Environmental Resources and Energy Committee will hold a hearing Wednesday on legislation to create a Pennsylvania Power Authority to buy power directly from wholesale suppliers under long-term contracts with the aim of securing cheaper prices.

The authority would sell this power to utilities. Ratepayers would benefit because the cost of electricity would be less susceptible to short-term price fluctuations in the wholesale market, proponents said.

“By creating a consumer-driven public power agency, Pennsylvania would free itself from the yoke of a broken wholesale power market condemning us to double-digit rate increases,” said Rep. Camille George, D-74, Houtzdale, the committee chairman and bill sponsor.

The authority also would finance construction or expansion of electric generating plants through direct investment or by providing low-interest loans.

Utilities have not built new generating plants in Pennsylvania during the past decade even though that was touted as a benefit of the state’s electric deregulation law, said George. Under the bill, the authority would consist of five members representing consumers, business, industry and agriculture.

George considers his legislation an alternative to the 30-percent electric rate hike for PPL residential customers that took effect Jan. 1 after decade-long rate caps were lifted.

by robert swift (harrisburg bureau chief rswift@republicanherald.com)