PPL STILL PUSHING FOR CONTROVERSIAL RATE INCREASE

HARRISBURG, April 28 - First, you get caught with your hand in the cookie jar.

            Then, the state regulatory agency that enforces the rules tells you to put the lid back on the jar - and keep it on.  Because state law says you can’t have a cookie until 2010.

            Now what do you do?

            Well, if you’re PPL, you ignore the regulatory agency and forget about the rules.

            You tell your lobbyists to figure out a way to change the law and get the lid off that cookie jar now!  Because all you care about is grabbing as many cookies as you want, as fast as you can.

            On the same day that Pennsylvania’s Public Utility Commission (PUC) refused to approve PPL’s controversial plan to raise electric rates in mid-2008, two years before their rate caps actually expire, a company-drafted bill was introduced in the State Senate to “get around” the PUC’s decision.  The Senate reconvenes in session today, although the House of Representatives does not come back into session until May 5.

            State Senator Lisa Boscola doubts that the timing was a coincidence.  On April 9, the PUC refused to approve PPL’s “so-called” rate stabilization plan.  That same day, Senate Bill 1352 (see below) was introduced to change the law to permit the company to do what the PUC said they couldn’t do: remove their rate caps before 2010.

            “That’s what happens when you mix corporate greed and the arrogance to think you don’t have to play by the rules,” Boscola said.  “PPL will stop at nothing to raise their customers’ rates by 50 percent as fast as they can.  250 people attended a PUC hearing to tell PPL they didn’t want to pay higher rates in 2008.  The PUC denied their request, postponed it indefinitely, and refused to say if they would even revisit it in the future.  Instead of getting the message, the company is now trying to slip some bill past the legislature to get what they want.  I don’t think so!”

            While Pennsylvania’s other “capped” electric companies are coming to the table, willing to work on “real” rate mitigation for their customers, PPL has been “militant” in refusing to do so, Boscola said.

           “Every other energy company in the state wants to be part of the solution, not part of the problem,” she said.  “PPL doesn’t see a 50-percent rate increase as a problem - certainly not for their shareholders - so they don’t think a real solution is even necessary.  That’s sad, because it shows that they really don’t care about their customers.”

            In September of 2007, Boscola was the first lawmaker to publicly call on her colleagues to take action to protect ratepayers, small businesses and industrial plants before electric rate caps begin to expire in 2010.

            “Everyone was just focused on solar, wind and renewables as the solution to all our energy problems,” she said.  “Green quickly became the new red-white-and-blue.  Solar power, wind farms and renewable sources of energy are all important in the long-term.  But, the real, short-term energy crisis of skyrocketing electric prices when rate caps come off in 2010 was nowhere on anyone’s radar screen.  I knew what was happening in surrounding states, where lawmakers were desperately trying to undo the economic train wreck after caps had already expired - but it was too late and the pain was too great.  I didn’t want that scenario to happen here, too.” 

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SB 1352 By Senators BROWNE, BRUBAKER, RAFFERTY, GORDNER, CORMAN, EARLL, PICCOLA, MADIGAN, VANCE, BAKER, D. WHITE, PIPPY, ARMSTRONG and MUSTO.           

Printer's No. 1933.                       

An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, defining "overall rate" and "rate phase-in plan"; and providing for rate phase-in plans.