Electric Generators' Association Executive Outlines Ways to Help Pennsylvania Customers...

Electric Generators' Association Executive Outlines Ways to Help Pennsylvania
Customers Deal with Higher Electricity Prices

HARRISBURG, Pa., July 22 /PRNewswire/ -- Terrance Fitzpatrick, General
Counsel of the Electric Power Generation Association, today highlighted
options for helping Pennsylvania customers deal with higher electricity prices
being driven by higher fuel and commodity costs. Fitzpatrick made his
comments in testimony he delivered at a House Environmental Resources and
Energy Committee held in Pittsburgh, Pa.
Fitzpatrick said, "Electricity prices are rising throughout the country --
in both states that allow competition and in states that retained traditional
regulation -- because of increases in the cost of fuels used to generate
electricity, and in the cost of building new power plants." He argued that
Pennsylvania legislators can best respond to this challenge by educating
customers on how they can conserve and save, giving customers options to
phase-in higher prices, encouraging conservation and reductions in peak demand
for electricity, and reviewing the adequacy of low income assistance programs.
Fitzpatrick cited a range of studies and media reports that have concluded
that higher electric prices in both states that have and haven't restructured
their markets have been driven by higher fuel and commodity costs. "It is a
hard reality," Fitzpatrick said, "that Pennsylvania cannot control the global
conditions -- surging demand for energy and commodities in countries such as
China and India -- that are driving up the underlying costs of producing
electricity."
Fitzpatrick directly challenged claims that competition is to blame for
higher electricity prices. "It is simply wrong to blame higher electricity
prices on electricity competition, on PJM's wholesale pricing rules, or on
generators of electricity," Fitzpatrick said. "Policies that are based on
these mistaken beliefs ... will lead Pennsylvania in the wrong direction, and
will cause higher prices and less reliable service down the road."
Instead, Fitzpatrick said, "Pennsylvania can help customers adjust to
higher prices by providing phase-in options, helping customers to conserve and
reduce their peak demand, and providing assistance to low income customers."
EPGA is a regional trade association of major electric generating
companies that supply wholesale power in Pennsylvania and surrounding states.
Its member companies own and operate more than 141,000 megawatts of generating
capacity, approximately half of which is located in the mid-Atlantic region.
Contact: Terry Fitzpatrick
(717) 909-3742

SOURCE Electric Power Generation Association

Terry Fitzpatrick of EPGA, +1-717-909-3742