Energy Policy
March 25, 2010

Hi, I’m Gene Barr, vice president of the Pennsylvania Chamber. Welcome to this month’s Pennsylvania Chamber Minute.

The current energy policy debate in Harrisburg comes down to one critical question: what is the best strategy for the Commonwealth moving forward?

The nationwide demand for energy is expected to increase 50 percent over the next two decades. The challenge for policymakers is to ensure adequate supplies to meet our needs at prices consumers can afford, while not jeopardizing the economy and private-sector jobs.

Pennsylvania Chamber members believe that both alternative and traditional sources as well as nuclear, must be part of the mix. Concerns arise, however, when government mandates the types and percentages of energy. This is exactly what the General Assembly is considering.

House Bill 80 would extend alternative energy mandates established in 2004, even before the impact of that law is fully known.

This approach to energy policy is anti-consumer, anti-choice and anti-innovation, which is why the Pennsylvania Chamber and its members are strongly weighing in against this bill.

House Bill 80 is estimated to add 9 to 12 billion dollars to the cost of electricity purchases in future years. This burden will be felt by businesses and residents alike at a time when they can least afford it.

By mandating specific forms of energy for one-third of the electricity market, this bill would harm Pennsylvania’s historic energy strengths, such as coal, as well as the promising natural gas industry.

The bill would also hinder development within the alternative energy field. Government cannot accurately predict future viable forms. This is the role of innovation. House Bill 80 shuts out potential new discoveries because they wouldn’t be included on the government’s arbitrary list.

Finally, House Bill 80 restricts consumer choice. It’s important to note that under electric deregulation, consumers already have the option of purchasing alternative energy, and many businesses have embraced green initiatives. This legislation takes that choice out of their hands.

Some groups proclaim House Bill 80’s economic and job creation potential by citing a flawed study that is based on hundreds of assumptions.

From our perspective, lawmakers should simply look to Europe, where the government-mandate approach to energy policy has proven more expensive than beneficial.

These same groups also misconstrue the Pennsylvania Chamber’s position on H.B. 80 as an attack on alternative energy in general. They couldn’t be more wrong.

The Chamber and its members, which include companies involved in the alternative energy field, simply believe that the best energy strategy is one in which lawmakers encourage innovation and let consumer choice determine viable options.
Thank you for your support and for spending a minute of your time with the Pennsylvania Chamber…The statewide voice of business.