From staff reports

HARRISBURG -- State Democrats want to propose legislation to curb electric rate increases that will soon take effect for many Pennsylvanians.

Earlier this week, state Senate Democrats announced they will introduce several bills to defer rate increases and force the electric-generating companies to act on reducing consumer costs.

Republican Sen. John Gordner did not respond to phone calls Thursday for comment.

About 5,500 Citizens' Electric customers in the Lewisburg area experienced a 40 percent rate hike in the past few months and thousands more PPL customers will likely see rates jump by 34 percent next year.

Thousands of customers across the state are already feeling the pinch and electric service shutoffs are up 37 percent this year.

According to a report compiled by the Pennsylvania Utilities Commission, 13,327 PPL customers terminated service between January and May of this year compared to 5,944 PPL customer terminations during those same months in 2007.

That's a staggering 124 percent increase, and the proposed rate increase hasn't gone into effect.

Citizens' Electric had only eight customer terminations during the first five months of 2007 and none this year.

Sen. Lisa Boscola, D-Northampton/Monroe, has sharply criticized PPL officials for boasting about massive profits.

"They are satisfied with charging their customers up to five times more than what it costs them to generate the power," she said. "While many family and business electric bills will go up by more than 50 percent, PPL is brashly predicting a corporate earnings margin jump from $1.8 million this year to an obscene $3.3 billion in 2010."

A PPL financial report predicts that while it is expected to cost $16 per megawatt hour, or less, to produce electricity, the company will charge customers an average of $91.42 per megawatt hour.

Boscola wants to introduce a bill that would extend the rate caps while lawmakers try to find ways to protect consumers and stabilize the market.

"Unless we take decisive steps soon, I fear for how many people will be unable to pay and have their electric service shut off once deregulation reaches its statewide peak in 2010," said Sen. Sean Logan, D-of Allegheny.

Senate Democrats are proposing a gradual phase-in of higher electric rates over a five-year period and permitting utilities to raise rates annually by no more than 5 percent or the rate of inflation, whichever is less.