Electricity customers in Pennsylvania deserve fair rates and full choice in selecting an electric power provider, according to the newly-established Energy Consumers First coalition, which today outlined a detailed Energy Consumers Bill of Rights that it seeks to have adopted by state regulators.

The new coalition seeks to give Pennsylvania’s energy consumers a stronger voice in utility issues, including how the upcoming expiration of rate caps is handled in Western Pennsylvania for customers of Allegheny Power, Met-Ed and Penelec.

The new Energy Consumers First coalition has already been endorsed by former state Treasurer and Auditor General Barbara Hafer, who has been named Honorary Chairwoman of the effort. The coalition is a citizen-driven initiative whose goals are to ensure that energy consumers’ rights are defended and that they are provided with accurate, timely and unbiased information about choosing an electric supplier once rate caps are terminated on January 1, 2011. The coalition believes that consumers should experience the full benefits of electricity competition as was envisioned when the Act was passed.

“The Energy Consumers First coalition is primarily a consumer protection effort that focuses upon public education and awareness,” said Barbara Hafer during a formal launch press conference held in downtown Pittsburgh today. “Our goals are to ensure that energy consumers are paying a fair price for the power we use, and that we have full electric choice once the rate caps do expire.”

Hafer said the genesis of the new coalition was the pending merger of energy giant First Energy with Allegheny Power, and First Energy’s efforts to have it designated as the “dominant supplier” for electric customers in the Allegheny Power and other Western Pennsylvania service areas. The merger request is currently being considered by the state Public Utility Commission, which is expected to conclusively rule on the matter early next year.

One of the alternatives to the First Energy “dominant supplier” plan is to have all of the electric customers in the affected area be entered into a pool of customers that would be bid upon in a consumer-friendly public auction, with auction proceeds then returned to the individual residents and businesses in amounts ranging from $150 to $500, a significant benefit in today’s economy. This proposal will foster true competition among electricity suppliers for the affected customer accounts. The rebate idea is also being considered by the PUC as part of the merger request in spite of First Energy’s adamant opposition to it.

Hafer noted that another key aspect of the coalition’s mission is ensuring that the rates consumers pay are true and accurate, and reflects what the actual costs are to the utility. Many electric utilities are locking in their customers’ energy supply at higher than market rates for extended periods of time, even though the costs of buying that power have decreased over time. Without competitive options, customers could be locked-in to higher rates, rather than being allowed to receive the rebate and potentially lower rates.

“This is an unacceptable situation and our regulators and legislators in Harrisburg should be taking steps to prevent this unfair and inequitable practice,” noted Hafer. “Pennsylvania residents continue to struggle in this economic downturn, and certainly every extra dollar that they can get or avoid having to pay will be well-used and appreciated.”

The Energy Consumers First coalition is urging consumers from across the state to sign its online petition urging the adoption of the Energy Consumers Bill of Rights, as well as contact the PA Office of the Consumer Advocate to express support for it. Letters, emails, and calls to local utilities and legislators are also being solicited. More information on the Energy Consumers First coalition can be obtained from the organization’s website at www.energyconsumersfirst.com, or by calling 1-866-885-3438.

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Pennsylvania Governor Ed Rendell blistered the proposed merger between FirstEnergy and Allegheny Energy, saying it would benefit Ohio and screw Pennsylvania due to the 980 jobs that would be lost as a result.

He said in a release today: “”This merger would be a great deal for Wall Street and Ohio, but terrible for Pennsylvania’s workers and consumers,” said Governor Rendell. “Wall Street’s investors would benefit to the tune of $2 billion, but Pennsylvania could lose nearly 1,000 jobs and our consumers would have fewer choices because there’d be less competition to keep electricity prices low.”

FirstEnergy Corp. and Allegheny Energy today issued the following statement in response to Pennsylvania Governor Ed Rendell’s opposition to the companies’ proposed merger:

“We respectfully disagree with Governor Rendell’s position on our proposed merger.

The merger will create a stronger company, better positioned to deliver significant immediate and long-term benefits to the Commonwealth of Pennsylvania, including operating efficiencies that would result in better service reliability and prices for customers.

It is noteworthy that several groups concerned with jobs and economic growth in Pennsylvania have publicly supported the merger, including the International Brotherhood of Electrical Workers (IBEW), the Utility Workers Union of America (UWUA) and economic development and chambers of commerce groups, such as the Butler, Pa. County Economic Development Corp., Greater Johnstown-Cambria County Chamber of Commerce and the PA Economic Development Association.

The stronger company created by this merger provides the best opportunity for employment and economic growth in Pennsylvania. FirstEnergy has made certain commitments related to the utility workforce in Pennsylvania. The company also has delayed hiring in order to accommodate Allegheny Energy employees, and will look for ways to provide additional career opportunities.

In its merger application, FirstEnergy has committed to locate a regional headquarters in Greensburg, Pa., at the current headquarters building of Allegheny Energy. And, the company plans to work with local community colleges to establish a fourth Power Systems Institute (PSI) program in Pennsylvania. PSI is FirstEnergy’s award-winning partnership to educate and train future utility workers.

Previous FirstEnergy mergers – including the 2001 transaction with another Pennsylvania company, GPU, Inc. – resulted in enhanced customer service reliability, improved safety and increased community support.

While we are disappointed that Governor Rendell does not recognize the many benefits of the FirstEnergy and Allegheny Energy merger, we will continue to work through the process to secure the needed regulatory approvals. The process remains on track. We are confident that the Pennsylvania Public Utility Commission (PaPUC) will look at the record of the case and base a decision on the merits. The merger already has been overwhelmingly supported by both companies’ shareholders, and has been approved by the Virginia State Corporation Commission. We hope to receive support from the remaining commissions, including the PaPUC, so that the merger can be completed in the first half of 2011.”

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