Prompt Congressional action is needed to pave the way for more competition in the electricity industry, Pennsylvania Power & Light Co.'s top executive said Tuesday (6/18).
William F. Hecht, PP&L's chairman, president and chief executive officer, made that point in announcing that PP&L is a charter member of Partnership for Customer Choice, a group of seven companies that is supporting swift passage of federal legislation on providing customers with the opportunity to choose their electricity supplier.
"This group has worked in a collaborative process to develop positions in support of the effort to provide all American consumers with the right to choose their electricity supplier," said Hecht.
"Electricity customers around the nation will be the ultimate beneficiaries of this effort," said Hecht. "More competition in the electricity business will mean lower prices. And since electricity use is so closely tied to the economic vitality of our nation, these lower prices can lead to more prosperity ... and more jobs."
PP&L is the only electric company in the Northeast that is part of the group. Other members include Allegheny Power Systems; Cinergy; PacificCorp; UtiliCorp United; Wisconsin Energy Corp.; and Wisconsin Power & Light.
The group is seeking prompt action on federal legislation that would result in customers having the opportunity to choose their electricity supplier by the end of this decade. Hecht said this opportunity can be made available to customers without affecting the reliability of the electricity system.
"We believe there is a need for both state and federal government involvement in this process and we are working on both fronts," said Hecht. "Federal legislation is necessary to provide a framework for a more competitive industry and a timetable for implementation. The states then would establish specific rules, recognizing the wide variations in customer mix and the configuration of various systems.
"Our association with this group is another part of our effort to support proposals to provide choice to our customers," Hecht said. "We have pledged to work with all interested parties -- customers, regulators, legislators, consumer groups and other electric companies -- to develop a system that will benefit all stakeholders."
Hecht said the basic positions of this group are very similar to the principles that PP&L has advocated in public statements over the past six months. Those principles: all customers must have the opportunity to choose their supplier; reliability of electric service must be preserved; social and environmental programs must continue; and an equitable solution to transition costs must be shaped.