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Pennsylvania State Senate
04/28/2024 08:23 PM
Pennsylvania State Senate
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=S&SPick=20130&cosponId=14364
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Senate of Pennsylvania
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted: March 21, 2014 11:17 AM
From: Senator Bob Mensch
To: All Senate members
Subject: Electric Rate Stability and Consumer Protection Legislation
 
Certainly the winter of 2013-2014 will be remembered as a very unusual winter, cold, snowy and increased electric usage accompanied by high customer bills. This winter has served as a reminded to all of us that, although Pennsylvania has already come a long way since introducing electric competition, there is still a great deal that remains to be done!

Without question, we need to address the significant rate spikes consumers experienced when using a variable rate offering. In fact, there are a number of consumer issues relating to fixed term contracts and default service as well, and I believe we need to strengthen the customer education requirements.
We must have stronger consumer protections in Pennsylvania accompanied by increased consumer education so Pennsylvania residents can shop with the assurance of quality products at an affordable price. I intend to address these issues in new legislation that I am about to introduce including provisions that will:
  • Maintain the current default electric structure for consumers with no change in supplier;
  • Notification of contract expiration at 90, 60 and 30 days, and then continue on to ensure rate stability for all contracts beginning in the open month (i.e., 13th month of a 12 month contract) of a fixed rate product after the fixed term has expired;
  • Manage and set limits on the upside of rate spikes impacting consumers with variable rate contracts in order to make them more predictable for consumers (i.e. capped at 25% in a 30 day period). We also need to strengthen the notification process of price increases for consumers using variable rates;
  • Charge the Public Utility Commission and the industry (distribution companies, generating companies, resellers, etc) with providing much more consumer education. This area has clearly been lacking and it is my intention to have as many sources of information available to expand our consumers’ knowledge base; this will include print, social media, email, PSA;
  • Allow commercial and industrial customers large and small to operate in the same manner;
  • Improve the timeline for contract conversions to 3 days, so that consumers choosing to switch are able to immediate lack in to a new rate they choose;
  • Protect customers from being dropped from service due to usage rate;
  • Provide a clear migration path for customers, who experience a loss in service by their provider, to a new provider at a similar service contract length and price.
It is my hope that this new legislation will provide lower prices through increased competition, improve understanding of the electric market as well as the consumer choices, enhance oversight by the PUC, protect consumers from variable rate spikes and put into place stronger consumer protections throughout the competitive electric marketplace. For these reasons and more please join me in supporting this important legislation. If you have any questions call Matt Azeles in my office at 717-787-3110.