HARRISBURG – Gov. Edward G. Rendell warned that, in the absence of a comprehensive strategy to move Pennsylvania and the nation towards energy independence, the continued increase in oil speculation that resulted in another record price for crude oil will have devastating consequences for families, businesses and the economy.
The governor said that with oil trading at $106 per barrel today, the General Assembly should move to pass his Energy Independence Strategy quickly when it returns to session next week.
“The price of energy continues to go up, and that is causing concern for more and more families and businesses,” said the governor. “As a nation, we’re facing an economic slowdown and a declining dollar. Unless we do something to control these prices, it’s only going to make matters worse.
“News that oil is closing in on a record $106 per barrel—the third straight record-setting day, in fact—means motorists will soon be paying more at the pump. And when fuel prices go up, so do the prices of everything else we buy because it costs more to manufacture and transport goods. That’s tough news to swallow for many families whose budgets are already stretched thin.
“We need to stop sending billions of our hard-earned dollars overseas every week, to the cartel of oil-rich nations, and start investing that money here at home in alternative fuels,” said the governor. “Our consumers and businesses also need tools to conserve energy and use it more efficiently. We can grow our economy, create jobs, and save Pennsylvania consumers $1 billion every year on their energy bills if the legislature passes the Energy Independence Strategy I put forth more than a year ago.”
The governor’s PennSecurity Fuels Initiative, part of his Energy Independence Strategy, is now before a special session of the legislature. The plan calls Pennsylvania to produce and consume nearly 1 billion gallons of homegrown, renewable transportation fuels annually, including ethanol, biodiesel and coal-derived fuels—a target amount that will equal the amount of fuel Pennsylvania is expected to import from the Persian Gulf region by 2017. The House of Representatives overwhelming approved Rendell’s proposal in June (138-60). It has yet to be acted on in the Senate.
Crude oil for April delivery reached $105.97 per barrel today on the New York Mercantile Exchange.
The Energy Independence Strategy would require utilities to provide customers with service at the lowest possible cost and invest in cost-effective conservation measures before building more expensive generation plants that pollute the environment or stringing high-voltage transmission lines through Pennsylvanians’ backyards. Utilities would be required to provide smart meters that tell consumers exactly how much electricity is being consumed at any given time and at what cost. Smart meters tell consumers how much energy is being used at any particular time, and how much that energy costs — enabling customers to use less electricity during peak times when it is most expensive, which can save up to 15 percent on annual electricity costs.
Overall, the governor’s strategy would cut Pennsylvanian’s electricity bills by $10 billion over 10 years.