Rendell Backs FirstEnergy-Allegheny Settlement; Consumer Coalition Formed to Support Retail Auction

A coalition called Energy Consumers First has been formed which, "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."

Former state Treasurer and Auditor General Barbara Hafer has been named Honorary Chairwoman of the effort. Hafer said that the genesis of the new coalition was the pending merger of FirstEnergy Corp. and Allegheny Power, and concerns that FirstEnergy would become a "dominant supplier" as a result of the merger.

The group has endorsed a retail auction to assign non-shopping customers at what would be the combined FirstEnergy territories -- a proposal first offered by Direct Energy.

The group has issued a Consumers Bill of Rights, available here.

While not overly specific, the Bill of Rights does call for, among other things such as choice and transparency, a, "variety of billing options and rate structures that reflect our individual usage patterns."

The coalition also favors more market-reflective pricing for default service.

Separately, Governor Ed Rendell issued a statement expressing support for the settlement filed among FirstEnergy-Allegheny, PUC Trial Staff, and several other parties in the merger case.

"This settlement tips the scale on this deal in favor of consumers and the public," said Rendell

Rendell had previously stated opposition to the merger, absent several conditions.