PA energy advocate finds solution to electric rate problem

Rebidding could lower rates, for now

By TOM KANE

MILFORD, PA — An alternate electric company has offered some hope that the immediate problems caused by exorbitant electric rate hikes in Pike County could be temporally solved.

The Direct Energy (DE) electric company asked the Public Utility Commission (PUC) to consider allowing Pike County residents to find an alternative supplier of electricity rather than the one selected by Pike County Power and Light (PCP&L).

“In a competitive scheme, any licensed supplier of electricity who has a permit to do business in Pennsylvania and New York can go out and offer a new deal to customers,” said Michael Donovan, spokesman for PCL&P. “Direct Energy is asking the PUC to allow a new auction for a supplier of the electricity. Whoever supplies the energy, we will be the distribution company that brings the electricity to customers.”

After the petition by DE, the PUC will accept further comments from the public and will then make a decision whether to re-bid or not. The PUC decision should occur in a few weeks.

“A new bid process, proposed by Direct Energy, would come at a time when the rates are far lower than last fall, when the auction was held by electric generating companies,” said Sonny Popowsky, the Pennsylvania consumer advocate assisting the Pike County commissioners.

In a new bid, the current rate charged by a new electricity supplier who would take the Milford area over would be cut considerably, Popowsky said.

Commissioner Rich Caridi announced the optimistic solution at the commissioners’ meeting held on March 8.

“If Direct Energy succeeds, this will only be a temporary solution,” Caridi said. “What we need is a permanent solution so this doesn’t happen again.”

Popowsky said Milford-area power needs to come from a different part of the energy grid.

“What has to happen is that the Milford area has to be linked with the Pennsylvania-Jersey-Maryland (PJM) electricity grid, which has far lower rates because it’s a consortium of many power companies,” Popowsky said. “There is no infrastructure existing between PJM and the Milford area. Since PJM electric lines are only a few miles away, a link would easily be established in a relatively short time.”

“We’re very lucky to have the services of Sonny Popowsky, who is playing a central role in solving this problem,” Caridi said.

Two weeks ago, PUC held a protracted public hearing to listen to the complaints about the unreasonable rates paid by residents served by PCL&P. For several hours, residents and business people told the commissioners how the rates imposed by the PCL&P would force businesses closures and undue hardships.