"The prices of fossil fuels have fallen significantly over the last six months, but now is not the time to become complacent and fall back into wasteful habits," Governor Rendell said. "Demand for energy will rebound, but the rate of new discoveries of easily obtained, high-quality oil will not be able to match it. Prices will increase again, so we must make ourselves ready."
The Governor said that many businesses and residential consumers in Pennsylvania can expect double-digit electricity rate hikes and volatile market prices once rate caps expire statewide in 2011. That reality, in addition to the unpredictability of future gas prices, should motivate consumers to invest in cleaner, money-saving alternative and renewable energy technologies, as well as conservation and efficiency measures.
Governor Rendell added that Pennsylvania has invested heavily in these areas, making the state a national leader, and put in place many incentives in place to help consumers undertake these kinds of projects.
"Since taking office, I've set out to make Pennsylvania a leader in the development and deployment of alternative and renewable energy technologies, because we cannot continue to depend on foreign oil and we need to be better stewards of our environment," said the Governor. "We've also stressed the importance of conserving energy and using it more efficiently because the cheapest, cleanest energy is that which we do not use.
"For businesses to stay competitive and protect their bottom lines, they need to invest in energy conservation and efficiency," the Governor said. "They also need to look at ways to use other, advanced forms of energy, like wind, solar, and geothermal--alternatives that, after the initial payback period, produce electricity at virtually no or very little cost. These steps are imperative because most of Pennsylvania's electricity consumers are facing double-digit increases in the rates they pay in 2010 and 2011. Rate increases of that size could be devastating to their bottom lines, hampering job creation and economic growth."
Pennsylvania is making critical investments to encourage more businesses to conserve energy and develop and use alternative and renewable sources.
Included among the recently enacted Alternative Energy Investment Fund is more than $237 million for helping small businesses and families conserve electricity and manage higher energy prices, as well as $180 million for solar technologies and more than $200 million for renewable energy and early-stage economic development projects.
Governor Rendell announced earlier this month that the first two funding programs through the fund -- the Small Business Energy Efficiency Grant Program and Renewable Energy Program -- are now available.
Projects qualifying for a Small Business Energy Efficiency grant will save at least 20 percent of the applicant's annual energy costs and at least $1,000 a year in energy costs. The grants will provide up to 25 percent of project costs, with a maximum grant of $25,000.
The Renewable Energy Program will provide $25 million in grants and loans to businesses, economic development organizations and political subdivisions for wind energy facilities and geothermal technologies, including opportunities for wind energy and geothermal manufacturers.
The commonwealth will unveil other new energy conservation programs and alternative energy investment programs over the next several months that will benefit the state's power consumers at work and at home and protect the environment. Funding for many of the new programs will be provided by bonds to be issued by the Commonwealth Financing Authority. The timing of the bond issues will depend upon conditions in the U.S. municipal bond market.
The Governor noted that business and residential power consumers will also benefit from energy conservation plans that utilities will implement under Act 129, signed by Governor Rendell in October. By curbing electricity consumption, especially during the 100 most expensive hours of the year, the conservation plans will enable power consumers to save more than $250 million a year beginning in 2011 and $800 million annually by 2013.
The Governor noted a report released today by the Public Utility Commission estimates that electricity prices would be significantly higher if rate caps expired today in the five utility service territories that are still capped. Residential prices would increase an average of more than 25 percent and industrial prices would soar by 33 percent.
Though the increases are significantly less than if rate caps came off six months earlier, when rates would have increased an average of 73 percent for residential customers and 102 percent for industrials, the report indicates consumers will be subjected to extreme price volatility unless further measures are taken.
For more information on Pennsylvania's Energy Independence Strategy, visit www.depweb.state.pa.us and click on the "Fueling Energy Savings" icon.
Subscribe to RSS Feed