It’s shocking

Electricity rate increase hearings draw few

By KRISTA GROMALSKI

MILFORD — A pair of public hearings on May 30 saw sparse attendance, despite the possibility of a 24-percent hike to some resident’s electric bills. In February, Pike County Light and Power (PCLP) requested the increase of the Pennsylvania Public Utility Commission (PUC).

Frank Marino of Orange and Rockland Utilities, Inc., PCLP’s parent company, said the request to raise rates is a result of the substantial increase in fuel prices.

Seven individuals, including Pike County Commissioner Gerry Hansen, testified during the afternoon session at the county administration building. Hansen said the county’s annual PCLP electric bill would jump from approximately $83,000 to $100,000 as a result of the increase.

Speaking on behalf of the Delaware Valley School District (DVSD), business administrator Bill Hessling said the estimated $66,000 increase in the district’s annual electric bill would represent the salary and benefits for about 1.5 new teachers.

Similar to the afternoon hearing, only four individuals provided testimony at the 7:00 p.m. session.

W.L. Griffin, chair of the DVSD Finance Committee, asked PCLP’s counsel to provide the company’s financial statements for review. Pointing out that Pennsylvania does not currently have a power problem, Griffin said without reviewing the statements it is difficult to tell if an increase is necessary.

During both hearings, local business owners showed the most concern over the proposed increase.

Ed Hudson, of Hudson & Hudson, said the 24-percent hike would make it “extremely difficult” to maintain his business. As co-president of the Milford Business Council, Hudson also said he has been in contact with other business owners, and the consensus is the increase is “unnecessary and unwarranted at this time.”

Richard Snyder, owner of Samall Association and Properties, said the current rates are a disincentive for people to do business in the area. Expressing his disturbance, Snyder said, “PCLP should be looking at a decrease.”

Matt Osterberg, representing Luhrs, and Jan Hurwitz, speaking for Pike Online, both said an increase of this magnitude would likely mean layoffs.

On behalf of residents of Westfall Township, Supervisor Kenneth Thiele questioned whether the increase might be motivated by a problem at Orange and Rockland. Thiele asked if Pike County is being asked to subsidize what’s being spent across the river.

PCLP representatives and attorneys did not cross-examine any of the witnesses, or make any statements.

After the hearings, Marino said PCLP has not increased its charges since 1991.

In 1997 the company was capped at a retail rate of .5 cents per kilowatt hour, but is paying .7 cents for the electricity it purchases for resale to residential and business customers.

PCLP reported a pre-tax loss of $1.7 million for the year 2000, due to the dramatically escalating purchased power prices.

Marino said the company’s intent is to review the outcome of the rate proceeding one year after implemented.

Administrative Judge Charles Rainey said no timetable is set for making a recommendation to the PUC.