Bill Text: PA HR366 | 2009-2010 | Regular Session | Introduced

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Bill Title: Directing the Legislative Budget and Finance Committee to undertake a study and analysis of electricity deregulation within the service territories of electric utilities where rate caps have previously expired in this Commonwealth.

Spectrum: Moderate Partisan Bill (Republican 35-11)

Status: (Introduced - Dead) 2009-06-23 - Referred to CONSUMER AFFAIRS [HR366 Detail]

Download: Pennsylvania-2009-HR366-Introduced.html

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PRINTER'S NO. 2249
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No. 366 Session of2009
INTRODUCED BY FAIRCHILD, BARRAR, BELFANTI, BEYER, BOBACK, BOYD, CLYMER, D. COSTA, CUTLER, DALLY, DENLINGER, DONATUCCI, EVERETT, FREEMAN, GEIST, GEORGE, HARKINS, HENNESSEY, HESS, HORNAMAN, M. KELLER, KRIEGER, MARSICO, METZGAR, MICOZZIE, MILNE, MOUL, MURT, O'NEILL, PHILLIPS, PICKETT, PRESTON, RAPP, READSHAW, ROHRER, SCAVELLO, SIPTROTH, STERN, STEVENSON, SWANGER, TALLMAN, J. TAYLOR, VEREB, VULAKOVICH, WATSON AND YOUNGBLOOD, JUNE 23, 2009
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, JUNE 23, 2009
A RESOLUTION
Directing the Legislative Budget and Finance Committee to
undertake a study and analysis of electricity deregulation
within the service territories of electric utilities where
rate caps have previously expired in this Commonwealth.
WHEREAS, Desiring to foster competition among utility
providers and expand consumer choice, the Commonwealth
deregulated the electricity industry with the passage of the act
of December 3, 1996 (P.L.802, No.138), entitled "An act amending
Titles 15 (Corporations and Unincorporated Associations) and 66
(Public Utilities) of the Pennsylvania Consolidated Statutes,
providing for generation choice for customers of electric
cooperatives and utilities; further providing for definitions;
reenacting procedural requirements for taxicab certificates and
medallions; providing for restructuring of the electric utility
industry; and further providing for taxation"; and
WHEREAS, This State law included caps on electric utility
rates to control electricity costs; and
WHEREAS, These rate caps have expired in some electric
utility service territories and are set to expire across this
Commonwealth within the next two years; and
WHEREAS, In areas where rate caps have expired, consumers
have transitioned to wholesale market-based rates resulting in
the consumer paying the prevailing market prices for generation;
and
WHEREAS, Within the service territories where rate caps are
set to expire, it has been estimated that electric rates will
rise for consumers between 12% and 50%, raising concern over the
effect this change may have on family and business budgets; and
WHEREAS, This concern has generated interest in designing
various rate increase mitigation options including, extending
the rate caps, adopting methods to phase in any increase in
rates resulting from the transition to market-based prices or
adopting consumer prepayment plans; and
WHEREAS, These methods may prove beneficial to consumers
within utility service territories where rate caps have not
expired; however, the effect these options may have on consumers
within utility service territories that have previously
transitioned to market-based prices is unknown; therefore be it
RESOLVED, That the Legislative Budget and Finance Committee
be directed to undertake a review and analysis of electricity
deregulation within the service territories of electric
utilities where rate caps have previously expired in this
Commonwealth, including:
(1) the general manner in which the transition to
market-based electric rates was accomplished within these
service territories;
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(2) a determination of how customer rates have been
affected within the electric service territories where rate
caps have expired;
(3) an analysis of how market competition has developed
among electric generation suppliers within service
territories where rate caps have expired; and
(4) a review of how consumers within these service
territories will be affected if one or more rate mitigation
options are established in State law and possible strategies
to assist these customers in a manner similar to other
consumers across this Commonwealth where rate caps have not
expired; and be it further
RESOLVED, That the Legislative Budget and Finance Committee
work in conjunction with the Pennsylvania Public Utility
Commission in the conduct of this review and the preparation of
a report on its findings; and be it further
RESOLVED, That the Legislative Budget and Finance Committee
prepare a report of its findings and recommendations to the
General Assembly within 12 months of the adoption of this
resolution.
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