Issue Position: Higher Electric Rates

Issue Position

As a result of deregulation of the electricity market in Pennsylvania, existing caps on the cost of electricity are set to expire within the next two years -- resulting in projected residential rate increases of 10-50% depending on which area of the Commonwealth the person resides. In the PPL service territory, rates have increased 30%. Yet, despite the investment of millions of dollars, fewer than 17% of residential customers in the PPL area have chosen a competitive supplier (even those who have switched electric suppliers have still faced 20% increases).

As governor, Tony would support the creation of a state authority that would purchase electricity at discounted rates and pass the savings on to all residential customers and businesses that choose to participate. This purchasing company, as a state entity, would not be required to build profits by charging higher rates to its customers. Rather, as the single largest purchaser of electric powers, this buying authority could leverage its buying power for lower rates and costs -- providing savings to customers. Not unlike the ability of big-box stores to use their large buying power to gain discounted prices on food and other goods, the Electric Power Buying Authority would have only one objective -- obtaining the lowest price for electricity for residents of the Commonwealth.

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