HARRISBURG, PA – Pennsylvania’s restructured electricity market is working well and helping to preserve jobs in Pennsylvania’s economy, large electricity consumers will tell the Pennsylvania Public Utilities Commission (PA PUC) at a public hearing tomorrow.  The hearing will feature testimony in support of the state’s competitive electricity market including businesses that employ thousands in Pennsylvania, such as the retailer Wal-Mart and manufacturer Leggett & Platt.

“Make no mistake about it. Competitive electricity markets are working,” said Steve Elsea, director of energy services at Leggett & Platt Inc., who will appear before the Commission. “Consumers no longer need to be tethered to a specific electric generation mix but can shop for energy from wind farms to landfill gas-operated generation. We can supplant peak demand utilizing solar technology or smooth those peaks through the use of advanced battery storage systems. And just as importantly, the new electricity marketplace encourages increased consumer energy efficiency and conservation far beyond the ‘one-size-fits-all’ model of yesteryear.”

Administrative Law Judge Louis Cocheres will preside over the hearing where energy consumers are scheduled to testify on the benefits of competitive electricity markets.  Prepared testimony from witnesses cite such benefits of restructured markets as the ability to manage price and other risks, demand management and energy efficiency services that reduce and shift consumption during peak usage periods, and increased access to and investment in renewable energy.

“Competitive markets are a successful key ingredient for Wal-Mart to manage its energy risks and costs in this ever changing environment to ensure we offer our customers the products they need at the best possible price,” said Angie Beehler, senior director of energy regulation for Wal-Mart Stores, Inc., who will also testify. “Competitive energy markets enhance Wal-Mart’s ability to control costs and pass those savings on to our customers.   Competitive markets give Wal-Mart more discretion in managing energy, which in turn enables us to deliver greater value to our customers.”

“America is facing enormous energy challenges,” said William Massey, a former federal energy regulator and counsel to COMPETE.  “As we look to the future, policy decisions should be made with a long-term focus on what will foster efficiency, reliability and sustainability over time. Competitive markets continue to prove that they are better equipped to reach these goals.”

In an October letter, a group of national and Pennsylvania-based businesses opposed legislation that would extend electricity rate caps in Pennsylvania because of the negative impact it would have on reliability and costs. Signatories to the letter to Governor Rendell included representatives from: 7-Eleven, Inc.; ACME MARKETS, a SUPERVALU Company; Best Buy Co. Inc; Big Lots Stores Inc.; Einstein and Noah Corporation; J. C. Penney Company, Inc.; Leggett & Platt Inc.; Macy’s Inc.; PetSmart Inc.; Safeway Inc./Genuardi’s; Wal-Mart Stores Inc.; and Yum! Brands Inc.

Link to the letter to Governor Rendell.
 
The testimonies are available at this website

In another related development, the COMPETE Coalition recently released  a study by energy experts atThe NorthBridge Group urging policymakers to learn from history in order to successfully navigate today’s energy challenges. That report, which warns policymakers against “Electricity Déjà Vu”, is available at this link.

Link to recent examples of rate increases in traditionally regulated states.