TOM KNOX UNVEILS COMPREHENSIVE ENERGY POLICY

By KNOX FOR GOVERNOR

Pennsylvania – As power companies gear up to receive record windfalls at the expense of Pennsylvania homeowners and businesses – Tom Knox held a capitol press conference today with a simple message: Not So Fast!

Citing the expiration of the existing caps on electric rates in the PPL service territory at the end of the month, 2010 candidate for governor, Tom Knox became the first candidate to release a comprehensive energy policy intended to provide affordable energy and funding to stimulate green energy job creation.

“Let me be clear, I intend to take on utility companies as Governor,” promised Knox. “I sincerely believe that voters want a Governor that is willing to stand up for families and businesses who are struggling to pay electric bills.”

Knox also called for the creation of an Energy Development Fund to provide dollars to stimulate “green jobs” creation, implementation of pollution control devices in power plants, tax credits to offset the cost of energy efficiency measures and products and grants for high efficiency energy technology development.

Knox’s Energy Development Fund would:

be supported by a Marcellus Shale gas extraction fee intended to produce $100 million annually.
provide loans and grants for “green job” training, such as solar panel installers and energy usage auditors;
provide tax credits for businesses that seek to hire “green job” employees;
provide loans and tax credits for businesses to implement energy conservation and efficiency measures and for existing power plants and other manufacturers to acquire pollution control equipment; and,
provide grants to colleges and universities to develop next generation efficient energy production technologies.
In order to keep electric rates affordable, Knox proposes the creation of a Power Purchasing Authority, modeled from similar authorities in New York and Illinois that would purchase electricity for all residential customers and those businesses that choose. “Much like Wal-Mart is able to leverage its large buying power to produce savings for its customers, a Power Purchasing authority will be able to buy electricity at low costs and pass the savings onto ratepayers.”

“People are already having a hard time trying to make ends meet, a 30% increase in their monthly electric bills may push many over the edge. I find it unconscionable that Harrisburg has failed to do anything to address this problem,” decried Knox.

“Sadly, I am not surprised. This is the same legislature in 2004 that passed legislation to permit utility companies to cut off electric service to struggling families in the middle of winter.” “Since that law passed, there has been over a 60% increase in service terminations according to the Public Utility Commission. Can you image what will happen once rates increase by 30%?” questioned Knox.

Knox’s plan calls for immediate reforms to the Utility Code that would prohibit mid-winter utility terminations, empower the Utility Commission to mediate billing disputes, and make it easier for customers to regain utility service once it is turned off.

The Knox plan calls for the extension of a three year rate cap, permitting electric rates to increase by 1.5% and the annual rate of inflation. Utility companies that are unable to obtain electricity at that price would be permitted to petition the Utility Commission for relief if they can demonstrate their rates are “just and reasonable.”

As Governor, Knox pledged to nominate members to the Commission that will be more concerned with the impact of rate increases on families and businesses, and less concerned with placating marketers.

“Electric deregulation is a failed public policy. In 1996, the proponents of electric deregulation in Harrisburg promised lower rates and better service. Almost 14 years later, we have neither,” stated Knox. “It is undisputed that those states that have removed electric rate regulations pay, on average, 50-55% higher rates for electricity than those states that have continued to regulate rates.”

Finally, recognizing that state government must lead by example, Knox’s plan also proposes the creation of an Office of Energy Development and Efficiency within the Department of Environmental Protection. This new office would be responsible for coordinating state energy efficiency standards and policies among all state agencies — from the various state system schools to the correction facilities in the state.

As Governor, Tom Knox will fight to ensure all new state building construction complies with LEED energy standards, retrofit existing state buildings where practicable, leverage state dollars in capital improvement projects to encourage “green” building standards, and represent the administration in proceedings before the Public Utility Commission.

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