President and CEO Andy Tubbs of the Energy Association of Pennsylvania (EAP), which represents the commonwealth’s electric and natural gas distribution utilities, today issued the following statement on a package of energy bills unveiled today by state House Democrats:
“EAP agrees with state House Democrats that energy affordability must be addressed. Our members are deeply committed to keeping energy service affordable, particularly for low-income households and small businesses. We recognize the real pressure that rising energy bills are placing on family budgets across the commonwealth.
“It’s important to clearly explain what drives customer bills. A substantial share of a customer’s monthly bill reflects the cost of electricity and natural gas from generation companies, which utilities do not control. These prices, which utilities do not profit from, are set in competitive markets and passed through to customers.
“State policies also have a meaningful impact on what customers pay. Policies that support retail competition, assist low-income households, encourage alternative energy and promote energy efficiency each serve important goals, but affordability depends on how those policies are designed and implemented.
“For example, EAP supports retail electric competition, but experience has shown that without adequate consumer protections, some customers, particularly seniors and low-income households, can end up paying more than they would have under the default service. Net metering plays an important and laudable role in supporting solar development, but the current structure can overcompensate generators and shift costs to customers who don’t participate.
“EAP strongly supports programs that protect low-income customers, but expanding these programs without addressing cost impacts can actually increase bills for working families who don’t qualify for assistance. Getting affordability right requires policies that reduce costs rather than shifting them.”
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About EAP
The Energy Association of Pennsylvania (EAP) is a trade association that represents and promotes the interests of regulated electric and natural gas distribution companies operating in Pennsylvania.
Contact: David La Torre, david@latorrecommunications.com