“The longer this legislation is stalled, the more difficult it’s going to be for Pennsylvania residents to manage the double-digit increases in electricity rates that are lurking just around the corner,” said Governor Rendell. “Families are already struggling with higher gas prices that are making it more expensive to fill up their cars and pushing up the price of food and other products.

“Last month, knowing that the last of the existing electric rate caps are set to expire in 2010, I asked Pennsylvania’s consumer advocate to estimate how much more our households could expect to pay. The numbers are staggering. West Penn Power consumers can expect rate increases of 60 percent, while the typical PPL customer can expect to pay an extra $42 a month for service — that’s more than $500 per year on top of what they’re paying now.”

The Governor said Pennsylvania has a unique opportunity to act before the full brunt of the expiring rate caps are felt by consumers. Other states acted in different ways only after the electricity market had fully deregulated and rates spiked causing considerable consumer outcry.

“This situation is not isolated to Pennsylvania,” said Governor Rendell. “Maryland’s rates jumped more than 70 percent and businesses closed their doors. After rates spiked 50 percent in parts of Illinois, lawmakers quickly enacted legislation to protect consumers and require that utilities pay $1 billion in rebates. And, when deregulation didn’t yield lower rates for consumers in Virginia, Virginia simply re-regulated its electricity market.

“We don’t have to go that route here,” said Governor Rendell. “I am asking for legislative action to protect consumers by ensuring that electric utilities purchase power at the lowest cost possible.”

H.B. 2201 requires utilities to buy power for their customers in a competitive manner so that consumers benefit from service at the lowest reasonable rate. The bill will require utility service providers to procure power through a mix of short- and long-term contracts and spot market purchases, and obligate the Public Utility Commission to ensure that the procurement process is free of fraud, collusion or market manipulation.

“We know this train is bearing down on us, and if we act now, we can get off the track,” the Governor said. “The Senate should also act to pass the three bills that were overwhelmingly approved by the House months ago that will help consumers save on their utilities bills and that will stimulate the growth in companies that help generate lower cost alternative sources of electricity and fuels.”

Fifteen months ago, Governor Rendell unveiled his Energy Independence Strategy. Three bills embodying the initiative to protect residents and invest in the economy are awaiting action in the Senate:

• Special Session House Bill 1, which passed by the House on March 11, will provide funding to develop solar, wind and other advanced energy industries, make it easier for consumers to purchase and install solar panels, continue the state’s leadership in energy-efficient green buildings, and give consumers help in purchasing high-efficiency heating/cooling equipment and appliances. The bill allows Pennsylvania to attract $3.5 billion in private investment by leveraging $850 million in new resources in projects that will help create 13,000 new, green-collar jobs in the commonwealth.

• H.B. 2200 was passed by the House on Feb. 12, and will help consumers save on their energy bills by conserving electricity and using it more efficiently. Once fully implemented, House Bill 2200 will save consumers $1.3 billion by 2012 on their energy bills through conservation and bringing down the cost of electricity during peak load times — when demand is highest and electricity is most expensive.

• H.B. 1202, or Governor Rendell’s PennSecurity Fuels Initiative legislation, has been awaiting action by the Senate since June. It requires nearly 1 billion gallons of biofuels to be produced and consumed in the commonwealth. By 2017, 1 billion gallons will equal what Pennsylvania is expected to import from the Persian Gulf.

“Short-term solutions sound good but we need to make a dramatic change in how and where we get our energy and improve our conservation efforts,” said Governor Rendell. “These are the only strategies that will have a real impact on the cost that consumers and companies have to pay for energy.”

For more information on the Energy Independence Strategy, visit www.depweb.state.pa.us, and click on the “Fueling Energy Savings” icon.