Senator Challenges PUC

The Senate Appropriations committee held its budget hearing this week for the Public Utility Commission but Senator Lisa Boscola used the hearing to challenge the PUC over whether electric deregulation is working in Pennsylvania.

PUC members said deregulation is working and because rate caps have expired for most utilities in the state, more electric suppliers are now entering the market in Pennsylvania. However, Boscola pointed out that even with additional suppliers, rates for most residential and industrial utility customers have gone up dramatically.

Boscola complained that because of deregulation the PUC will have little oversight over future rate increases. She also urged the PUC to keep track, as best it can, of the commercial businesses and industries in Pennsylvania who either close their operations or move to another state because of higher utility costs. Boscola says that’s how the success of electric deregulation should be measured in Pennsylvania.

Boscola says, however, there’s something the legislature can do to mitigate the higher electric rates. She says lawmakers should create a power purchasing authority that could buy electricity at its cheapest rate, sell it to the electric suppliers, and pass the savings along to ratepayers.