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                                                      PRINTER'S NO. 2424

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE RESOLUTION

No. 271 Session of 2001


        INTRODUCED BY CASORIO, BELARDI, BELFANTI, DALEY, GEORGE,
           LEVDANSKY, PALLONE, READSHAW, SHANER, SOLOBAY, STABACK,
           SURRA, TANGRETTI, THOMAS, TIGUE, TRAVAGLIO, WALKO, WOJNAROSKI
           AND YOUNGBLOOD, JULY 23, 2001

        REFERRED TO COMMITTEE ON RULES, JULY 23, 2001

                                  A RESOLUTION

     1  Establishing a select committee to develop an energy strategy.

     2     WHEREAS, A report issued by the Keystone Research Center
     3  indicates that deregulation of electricity, gas and telephone
     4  industries in this Commonwealth has resulted in lower quality
     5  service, fewer jobs and less reinvestment in the utility
     6  systems; and
     7     WHEREAS, In the 1990s the General Assembly began deregulating
     8  basic utility services, including the electricity, telephone and
     9  natural gas industries and proponents of deregulation promised
    10  benefits to consumers and the economy and offered assurances
    11  that reliability and quality of service would not suffer; and
    12     WHEREAS, From 1994 to 1999 the number of consumers who
    13  complained to the Pennsylvania Public Utility Commission about
    14  utility service in the electric, gas and utility industries more
    15  than doubled; and
    16     WHEREAS, By 1999 the Pennsylvania Public Utility Commission


     1  received more than 10,000 complaints about utility service; and
     2     WHEREAS, Electric utility outages lasted on average 30
     3  minutes longer in 1999 than in 1994; and
     4     WHEREAS, Gas utilities in 1999, the year Pennsylvania enacted
     5  gas deregulation legislation, saw an increase in the number of
     6  consumer complaints and the number of distribution system
     7  incidents, including explosions or other significant gas leaks
     8  leading to an accident of some type; and
     9     WHEREAS, In the past six years, Pennsylvania utilities
    10  reinvested just 5% of their profits in Pennsylvania utility
    11  systems, the remainder amounting to more than $15 billion having
    12  been spent in other states or other countries; and
    13     WHEREAS, From 1994 to 1999 Pennsylvania utilities decreased
    14  their Pennsylvania work force by about 6,500 people, or nearly
    15  15%; and
    16     WHEREAS, In the electricity, telephone and natural gas
    17  industries examined, pay increased for chief executive officers
    18  by 76% in inflation-adjusted dollars from 1994 to 1999 while the
    19  real wages of typical Pennsylvania workers increased by about
    20  5%; therefore be it
    21     RESOLVED, That the House of Representatives establish a
    22  select committee to study the impact of deregulation in this
    23  Commonwealth; and be it further
    24     RESOLVED, That the select committee consist of eight members
    25  of the House of Representatives, four from the majority party
    26  and four from the minority party; and be it further
    27     RESOLVED, That the Speaker of the House of Representatives
    28  appoint four members of the select committee; and be it further
    29     RESOLVED, That the Minority Leader of the House of
    30  Representatives appoint four members of the select committee;
    20010H0271R2424                  - 2 -

     1  and be it further
     2     RESOLVED, That the Speaker of the House of Representatives
     3  designate one member of the select committee to serve as
     4  chairperson; and be it further
     5     RESOLVED, That the Minority Leader of the House of
     6  Representatives designate one member of the select committee to
     7  serve as minority chairperson; and be it further
     8     RESOLVED, That the members of the select committee be
     9  appointed within 15 days of the date of adoption of this
    10  resolution; and be it further
    11     RESOLVED, That the select committee hold hearings, take
    12  testimony and make its investigations at such places as it deems
    13  necessary within or without this Commonwealth and that each
    14  member of the select committee have the power to administer
    15  oaths and affirmations to witnesses appearing before the select
    16  committee; and be it further
    17     RESOLVED, That the Chief Clerk of the House of
    18  Representatives be authorized to pay for all necessary,
    19  appropriate and proper expenses incurred by the select
    20  committee; and be it further
    21     RESOLVED, That the select committee make a report of its
    22  findings and recommendations to the House of Representatives no
    23  later than October 31, 2002.





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