Asserting that everyone who depends on electric utilities will benefit, Pennsylvania Power & Light Co.'s chairman Thursday (5/23) urged lawmakers to take prompt action to allow the state's consumers to choose their electricity supplier.
"At PP&L, we are supportive of actions that provide citizens with access to competitively priced electricity in the most expeditious manner," said William F. Hecht, PP&L's chairman, president and chief executive officer. He was testifying before the state House Consumer Affairs Committee, which is holding hearings on a bill introduced by Rep. Frank Tulli, R-Dauphin.
"The Tulli legislation, and a bill introduced by Sen. (David J.) Brightbill, both provide a policy framework for the transition to competition in the electric industry in Pennsylvania," said Hecht. "We support the overall goal of both bills.
"PP&L firmly believes that increased competition -- more choice for all of Pennsylvania's electricity users -- will be beneficial for everyone. All customers will benefit through lower rates," he said during the hearing in Breinigsville, Lehigh County.
He also pointed out that the state's businesses and industries will realize cost savings and that the employees of those enterprises "will be better able to compete in a global marketplace.
"Pennsylvania communities will benefit as lower electricity prices lead to more -- and better -- jobs in existing companies, as well as an improved ability to attract new factories, offices and other
facilities," Hecht said.
He said that legislative efforts are "crucial in creating the rules of the road as the electric utility industry is transformed.
"We also believe that regulatory agencies like the Public Utility Commission will -- and should -- be very much involved in implementing this new framework," he said. "It is crucial that we start this process as soon as possible.
"By moving forward now, we have the opportunity to firmly establish Pennsylvania as an excellent place to do business," Hecht said.
PP&L's chairman suggested some clarification and additions to the Tulli legislation, based on four principles that PP&L believes must be part of any successful transition to a more competitive marketplace for electricity.
Those four principles: all customers must have the right to choose their supplier; funding of programs for those who have difficulty paying electricity bills must continue; the present level of reliable electric service must be maintained; and an appropriate method of dealing with utility competition transition costs must be established.
"The legislation proposed by Rep. Tulli addresses all four of these principles. The suggestions that we are offering would further strengthen an already solid approach to this important challenge," said Hecht.
Hecht said the hearings being held by the Consumer Affairs Committee are an important part of a collaborative process that is necessary on an issue of such great importance to the commonwealth. "To get the right answers in this transition challenge, we need to involve customers, regulators, legislators ... everyone who has a stake in the way utilities operate," said Hecht.
Pennsylvania Power & Light Co., which serves 1.2 million customers in central and eastern Pennsylvania, is the electric utility subsidiary of PP&L Resources, Inc. Other PP&L Resources subsidiaries are Power Markets Development Co., an international independent power company; and Spectrum Energy Services, which markets energy-related services and products.