House committee to focus on skyrocketing electric rates
My offices have been fielding numerous phone calls from customers of competitive electric generation suppliers who have variable rate plans and have recently seen record spikes in their electric bills.
Such large spikes in a customer's electric rates can be shocking; however, it is one of the possibilities when entering into a variable rate contract.
Competitive electric generation suppliers are not public utilities and, although they are required to be licensed by the Public Utility Commission, their rates are not subject to PUC regulation.
These suppliers operate in a competitive, free market environment.
I cannot stress enough how important it is to ask questions and read the "fine print" before entering into any agreement.
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 we are experiencing has certainly contributed 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 today, in Harrisburg.
This hearing will be streamed live on my website at 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.
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 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 puc.state.pa.us and file a complaint with the Public Utility Commission, or call 1-800-692-7380.
If you believe the competitive supplier has violated Pennsylvania's Unfair Trade Practices and Consumer Protection law or has engaged in price gouging, go to attorneygeneral.gov to file a complaint with the attorney general's office, or call 1-800-441-2555.
Of course, you also are welcome to contact my district offices for assistance in Northampton at 610-502-2701 or in Slatington at 610-760-9805.