Rising variable electric rates focus of House hearing
The office of Rep. Julie Harhart has been fielding numerous phone calls from consumers of competitive electric generation suppliers whose variable rate plans have seen record spikes recently.
"Such large spikesin a customer's electric rates can be shocking; however, it is one of the possibilities when entering into a variable rate contract," says Harhart. "Competitive electric generation suppliers are not public utilities and although theyare required to be licensed by the Public UtilityCommission, their rates are not subject to PUCregulation. These suppliers operate in a competitive, free market environment."Harhart stressesthe importance of asking questions and reading the fine print before entering into any agreement.She says variable or adjustable rates in any type of contract mean savings in good times and an added expense in difficult circumstances. The colder than normal winter hascontributed to the increase in electric rates."In order to make certain electric generation suppliers are operating in accordance to fair trade practices, the House Consumer Affairs Committee is holding a public hearing on Thursday, March 20, in Harrisburg," says Harhart. "This hearing will be streamed live on my website at
www.JulieHarhart.com and archived for later viewing by those interested. From testimony gathered at the hearing, the committee will determine if additional consumer education is necessary."In addition, there is legislation set to be introduced to regulate the contracts offered to both residential and small business customers by competitive electric generation suppliers.Harhart says the legislation would require specific, easily readable and understandable information be contained in all supplier contracts. The bill would also place a cap on the amount by which a rate may change under a variable rate contract, prohibit cancellation and early termination fees for variable rate contracts, require the posting of current and historic rate on the PA Power Switch website and reduce the amount of time it takes to switch electric generation suppliers."In the meantime, if you believe you are paying a rate that is inconsistent with your supplier contract, please contact the supplier and attempt to resolve the issue. If the supplier is unable to resolve the complaint or is unresponsive, go to
ww.puc.state.pa.us and file a complaint with the Public Utility Commission, or call 1-800-692-7380."She says consumerswho believe thecompetitive supplier has violated Pennsylvania's Unfair Trade Practice and Consumer Protectionlaw or has engaged in price gouging, should go to
www.attorneygeneral.gov to file a complaint with the attorney general's office, or call1-800-441-2555.Constituents are also are welcome to contact Harhart's district offices for assistance in Northampton at 610-502-2701 or in Slatington at 610-760-9805.