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 FOR IMMEDIATE RELEASE Keystone Progress Begins Campaign to Delay Electric Rate IncreasesCitizens call for five year phase out of PA's electric rate caps (HARRISBURG, PA)-Keystone Progress began an online petition campaign today, calling on Pennsylvania's State Senators to support a five year phase-out of the cap on electric rate increases. Ten years ago the Republican-led House and Senate deregulated the electric industry in Pennsylvania. They promised us lower rates-up to 50% lower-as dozens of electricity providers would compete for our business. Instead, Harrisburg gave the electric companies $11 billion dollars of our money and a promise to allow them to raise their rates without regulation in ten years. That promise will be fulfilled in 2010 when the cap on electric rates comes off. "Pennsylvania consumers are about to get one big sucker-punch," said Michael Morrill, Executive Director of Keystone Progress. "And it could be a knockout blow for many small businesses and working families." By the electric companies' own projections, electric rates will rise from 20% to at 63%. However, consumer advocates think the reality will be closer to a 100% increase in our electric bills-and possibly more as fuel costs continue to soar. State Senator Lisa Boscola and other Senate Democrats are introducing legislation that would hold off the rate increases by phasing out the cap over a period of five years. It would also require that electric generators seek practical ways to lower their costs. Pennsylvania already has some of the highest electricity costs in the nation. Raising the rates even higher will break the backs of working families already struggling to make ends meet. It will also force small businesses to close and cause other businesses to locate in states with lower utility costs. "With prices projected to rise 70% or more at our plant once rate caps end, our energy costs will move from the middle of the pack to among the highest in the country," said James Englow, Plant Manager of Alcoa Lancaster Works, in testimony yesterday before the PA House Environmental Resources and Committee. Mr. Englow said that similar energy cost increase in Maryland resulted in the closure of Alcoa's aluminum smelter in Maryland, resulting in the loss of 700 family-sustaining jobs. "My fear is that increasing [seniors'] electric bills by 50% or more could be the critical difference between them being able to maintain their independence and live in their own home or trying to sell it and move into an apartment or long-term care facility," said Ed Ryan of AARP Pennsylvania. -MORE- According to figures provided by the state, utility shutoffs have already risen by 37% over 2007. If rates continue to go up, the number of low and middle income families unable to pay their bills will rise. Just like the gas giants, PA's electric companies are predicting record profits. The profits are based on charging rate payers up to five times more than what it costs them to generate the power, according to Senator Boscola. Boscola said that one electric company "is brashly predicting a corporate earnings margin jump from $1.8 billion this year to an obscene $3.3 billion in 2010." Unbelievably, most senators have not signed on to this family-friendly legislation. Keystone Progress partners are calling for their state senators to support extending the rate cap and phasing it in over a five year period. The call to action is at www.keystoneprogress.org. -END- Keystone Progress is a multi-issue, progressive advocacy organization that combines cutting edge online organizing and communications with rapid and hard-hitting on-the-ground strategies. www.keystoneprogress.org
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