Providing customers with choice and bringing more competition to the state's electricity business are two of the most important issues facing Pennsylvania, the chairman of Pennsylvania Power & Light Co. told a state senate committee Monday (9/16).

"Giving customers the opportunity to choose their electricity generator will result in substantial benefits for all those who have a stake in Pennsylvania's electricity system," said William F. Hecht in testimony before the state Senate Consumer Protection/Professional Licensure Committee.

"We believe that Pennsylvania should begin the transition to a competitive electricity marketplace as soon as possible with a goal of providing customers with choice by the end of this decade — or sooner," said Hecht.

Hecht said this transition should begin now because:

• "Pennsylvania consumers should have lower electric bills than would be the case under regulation.
• "Pennsylvania business and industry should have the opportunity to improve their global competitiveness by being better able to manage their energy costs.
• "Pennsylvania needs to move toward customer choice to be seen as a state that is attractive to new business — and new jobs."

Reacting to those who are saying that the commonwealth should take its time in pursuing customer choice, Hecht said, "I do not agree that delay will result in better answers for Pennsylvania."

Hecht told the committee that Pennsylvania has "the technical skills, the political acumen and the collaborative spirit to design a successful transition to a competitive electricity marketplace."

PP&L's chairman said the state is "off to a very good start" in defining the overall direction for the transition process. "Legislation proposed by Sen. Brightbill provides an excellent framework for the transition, and the PUC report on competition is an important step forward," he said.

Senate Bill 1475, introduced by Sen. Chip Brightbill (R- Lebanon), outlines a competitive transition process for the state's electric utility business.

Hecht told the senators that reliability of electricity supplies will not be a problem in a more competitive atmosphere. "Through a variety of measures, including changes in the Pennsylvania-New Jersey-Maryland power pool, we can ensure a continuation of the high-quality electricity service that our customers have come to expect."

He also endorsed rate guarantees for customers during the transition.

"PP&L supports a rate freeze — excluding fluctuations for fuel-related energy costs and certain other limited adjustments — during the transition period. We also support provisions that would guarantee that there would be no cost-shifting among customer classes," said Hecht.

While acknowledging that there still are many decisions to be made, he said, "We stand on the verge of a unique opportunity ... an opportunity to recreate a business in a way that will provide substantial benefits to all of our citizens."

Based in Allentown, PP&L provides electric service to 1.2 million customers in 29 counties of central and eastern Pennsylvania. The utility is a subsidiary of PP&L Resources, also based in Allentown. The company's other subsidiaries include Power Markets Development Co., an international independent power company; and Spectrum Energy Services, which markets energy-related services and products.