Since Pennsylvania’s energy deregulation in 1996, electric utility customers have been able to choose where and how their electricity is produced. Although “shopping” for energy supply is intended to provide savings opportunities from competitive offers, recent data from PA Utility Law Project (PULP) shows that over the last 10 years, customers choosing retail suppliers have paid more than $2.2 billion above the default service price. In other words, Pennsylvanians usually pay more when they shop in the competitive retail market than if they had remained with their default utility provider.
 
One of the main reasons retail supply customers pay more is that they can be automatically re-enrolled into new, more expensive, variable-rate plans if they do not opt out before their contract term ends. As a result, customers who are unaware of their contract terms can be left paying thousands of dollars more than they originally agreed to.
 
This is why we will be introducing a House companion to Senate Bill 312, which would return customers to their default service provider at the end of their contract term if they do not take action to renew their contract or choose another supplier. Under the bill, customers would be protected from being automatically re-enrolled into higher-priced variable-rate plans. As always, customers will be able to continue shopping in the competitive retail market if they choose.
 
This legislation is about safeguarding Pennsylvania families from unfair practices, lowering energy costs, and promoting fairness in the energy marketplace. I hope that you will join me in supporting this important consumer protection.