Pennsylvania Businesses Oppose Extending Electricity Rate Caps

A leading group of national and Pennsylvania-based businesses are urging Pennsylvania policy makers to continue with the evolution and implementation of Pennsylvania’s competitive electricity market. The businesses -- which collectively represent 1,226 facilities and 83,797 workers in Pennsylvania and purchase more than $93 million of electricity annually -- asked Governor Rendell and all state policy makers for their “support for energy independence by allowing the wholesale and retail electricity markets, with independent oversight, to continue to grow.”

In their letter, the businesses urged lawmakers to oppose legislation that would extend rate caps because of the negative impact these caps can have on reliability and costs. They cited California’s rolling blackouts and market instability as examples of the unintended consequences of rate caps and voiced support for an orderly transition to a competitive electric market.

The businesses also stressed that the reliability and savings that competitive markets deliver gets passed on to customers. “As business people in Pennsylvania, we compete in a free market. We understand that competition results in improved products and services at competitive prices. Rate freezes mask market signals that are essential for making wise usage decisions and for facilitating consumer demand response. Those savings allow us to continue to deliver low priced products to our customers,” the letter noted.

The signatories to the letter included: 7-Eleven, ACME/SUPERVALU, YUM! Brands, Wal-Mart, Macy’s, and Best Buy.

COMPETE, a national coalition promoting the continued evolution of competitive electricity markets, commended the businesses for their efforts.

“Pennsylvania is on the leading edge of properly structured competitive electricity markets. These businesses recognize the future of electricity supply and demand is in an orderly process towards greater choice and not in turning back the clock on electricity competition,” said Joel Malina, COMPETE’s Executive Director.

A copy of the letter to Governor Rendell can be found at www.competecoaltion.com