Pennsylvania Chamber members are urging lawmakers to reject legislation (H.B. 80) that could lead to higher costs for electricity producers and consumers, and could negatively impact the reliability and adequacy of Pennsylvania's electric generation supply.

House Bill 80 would extend renewable energy mandates under the 2004 Alternative Energy Portfolio Standards Act, increasing the mandated amounts of Tier 1 renewable energy. It would also increase the solar energy mandate, and create an additional mandate of up to 3 percent by 2015 for coal fired power plants using carbon capture and sequestration technology.

With electric rate caps coming off later this year and the uncertainties in the market as a result, now is not the time to increase the mandates for more expensive forms of energy. House Bill 80 is misguided considering renewable energy mandates established by AEPS have not yet been fully implemented, and that law's impact on cost is not yet known.

Additionally, it makes little sense for some lawmakers to discuss electric rate cap mitigation on one hand while at the same time passing a bill that could add to the cost of energy.

Estimates are that the additional mandates will add billions to the cost of electricity purchases in future years at a time when job creators and citizens can least afford it. Business groups and organized labor have concerns about the legislation's potentially adverse impact on electricity costs and jobs.

Pennsylvania needs all forms of energy to meet growing demand, including traditional and renewable sources, but alternative energy should exist within the framework of a free enterprise system that balances energy needs with viable sources to meet those needs.

Increasing mandated percentages of particular technologies creates inflexibility in the energy market and removes business innovation from the equation. Policymakers cannot accurately predict what technologies will exist or be economically viable in the years 2021 to 2026. The development of Marcellus Shale natural gas reserves, for instance, was not anticipated a decade ago.

Rather than having government pick and choose the sources of alternative energy to mandate, innovative businesses and families should be able to make energy choices from both traditional and renewable sources that are best for them.

Abundant and affordable energy is as critical for job creators as it is for individuals and families. Pennsylvania must take reasonable steps to ensure adequate supplies at affordable prices in the future; the last thing Pennsylvania should be doing is making policy decisions that could make energy more expensive.