Rendell: stable electricity rates essential for state's economy

HARRISBURG n He wasn’t talking about Milford by name, but Governor Edward G. Rendell remarks to a labor gathering Wednesday touched directly on the Pike Light and Power rate hike problem in Pike County. “Dramatic rate increases are threatening our continued economic growth. Pennsylvania’s families and companies rely on stable and affordable energy prices and services. If we don’t act now, Pennsylvanians will face double- or even triple-digit percentage increases like those experienced in northeastern Pennsylvania and neighboring states,” Rendell said. Once rate caps expire, as they have in the Milford area, consumers are subject to wholesale market prices and rapidly changing “spot market” rates — a particularly challenging prospect for manufacturers. Under Rendell’s Energy Independence Strategy, large energy consumers would be allowed to enter into longer-term contracts with stable, cheaper prices with their electricity provider, or develop “microgrids” to generate their own power. The strategy also requires electricity providers to provide “least-cost” service to consumers, and demonstrate efforts to keep prices down by buying a portfolio of electricity resources at wholesale prices through long- and short-term contracts, instead of spot market deals. Rendell addressed a coalition of leading labor unions gathered in the Capitol to announce their support for the Energy Independence Strategy, a development that the Governor said reflects the urgency facing Pennsylvania’s economy. “Already, we’ve heard many of our large industrial firms say this pending crisis is forcing them to reconsider their plans to invest and grow in Pennsylvania,” said Rendell. The Governor pointed to reports last month that leading manufacturers in southwestern Pennsylvania — Allegheny Technologies, US Steel and Latrobe Specialty Steel — that possible expansion plans could be pursued outside of the commonwealth. Each company cited concerns with Pennsylvania’s electricity markets. “This is devastating news, especially given the economic momentum and record job levels we’ve achieved over the last four-and-a-half years. Pennsylvania is facing an incredible energy challenge,” he said. “Already in parts of the state, electricity generation rate caps are expiring and resulting in skyrocketing prices and extreme volatility in rates. Family and business budgets are already stretched, and will be broken if we fail to take action now.” For more information on the Governor’s Energy Independence Strategy, visit www.depweb.state.pa.us, and click on the ‘Fueling Energy Savings’ logo. “The labor leaders that are standing here today recognize the fact that we’re facing a crisis, and are adding their voices to the growing chorus of citizens, companies and organizations that are supporting our Energy Independence Strategy,” the Governor said. “They realize this strategy offers sensible solutions that will help control energy prices by reducing consumption, investing in more efficient technologies, and encouraging the development of renewable energy solutions that will create job opportunities for our workers.” Today’s event was organized by some of the largest labor unions in the state, including the AFL-CIO, Boilermakers Lodge 13, International Union of Operating Engineers, Steamfitters Local 449, United Steelworkers, and the United Auto Workers. Governor Rendell noted that alternative energy manufacturing operations are already paying dividends for union members in Pennsylvania. Earlier this month, Gamesa — the world’s second largest wind turbine manufacturer, with its North American headquarters in Philadelphia and plants in Cambria and Bucks counties — reached a three-year labor agreement with members of the United Steelworkers. “The agreement forged between Gamesa and USW illustrates the opportunities we can create by tackling our energy challenges,” Governor Rendell said. “Whether it’s manufacturing wind turbines, engineering solar panels, or producing biofuels from the crops our farmers grow, we can create highly skilled jobs while working toward a cleaner environment and a future where we’re free from our reliance of dirty or foreign energy sources,” he said, adding that Pennsylvania has already attracted nearly a billion dollars in clean and renewable energy investments since January 2003 that have produced 2,500 new jobs. “There’s no reason to delay action on implementing this plan. For the sake of Pennsylvania’s economic and environmental future, I urge the General Assembly to adopt the Energy Independence Strategy now,” the Governor said.