PennFuture Regrets Preliminary Decision by PUC to Strip Clean Energy Funding in FirstEnergy Case.

HARRISBURG, Pa. -- John Hanger, President and CEO of Citizens for Pennsylvania's Future (PennFuture) today criticized the preliminary 3 - 1 decision by the Pennsylvania Public Utility Commission (PUC) to strip clean energy funding from the FirstEnergy rates. This funding, 1/100ths of a cent per kilowatt hour, had been in place since the original restructuring plan was adopted in 1998. FirstEnergy did not oppose both continuing this charge, and a modest increase in the funding proposed by PennFuture.

"At the time when energy prices are increasing and customers and most policy makers are embracing energy conservation and renewable energy, the Pennsylvania PUC is racing backwards," said Hanger. "States near and far - from New York to California, and 15 others - are providing clean energy funding system wide, with a charge on every electric utility. But instead of helping Pennsylvania compete in this clean and green economy, the PUC instead decided to severely handicap the green energy market in the FirstEnergy territory.

"The PUC also preliminarily denied our proposal for programs to help FirstEnergy customers use energy more efficiently," continued Hanger. "By not acting in this case, the PUC missed an opportunity. This is a potential disaster in the making. When the rate caps are removed in 2010, without energy efficiency technology and programs in place, customers will be at the mercy of the vagaries of the market place, with no protection.

"Pennsylvania and Governor Edward Rendell have been recognized for leadership in green energy worldwide, but only PUC Vice Chair James Cawley voted for the much-needed public policies to maintain that leadership," continued Hanger. "We hope in the final vote on January 11 that the PUC provides a road map, not a road block, to Pennsylvania's future."

Today's case before the PUC involved FirstEnergy's request for rate increases and allocation of savings from FirstEnergy's acquisition of the former General Public Utilities (Met-Ed and Penelec). In the only positive note in today's preliminary decision, the PUC refused the company's request to break the rate caps in advance of 2010.

PennFuture is a statewide public interest membership organization that advances policies to protect and improve the state's environment and economy. With offices in Harrisburg, Philadelphia, Pittsburgh and West Chester, PennFuture's activities include litigating cases before regulatory bodies and in local, state and federal courts, advocating and advancing legislative action on a state and federal level, public education and assisting citizens in public advocacy. Through PennFuture's series of legal cases and the organization's advocacy within state government, Pennsylvania has provided $188 million in investments and incentives for renewable energy.