PA SENATOR WANTS PUC MEMBER REMOVED FOR PERJURY

            HARRISBURG (AUG 1) - State Senator Lisa M. Boscola said today she is initiating impeachment proceedings against a newly confirmed member of Pennsylvanias Public Utility Commission (PUC) for lying under oath before the Senate Consumer Protection Committee at his confirmation hearing.

Commissioner Robert Powelson lied under oath to the members of the Senate Consumer Protection Committee at his confirmation hearing in June, Boscola said. His recent statements at a public hearing conducted by the House Republican Policy Committee completely contradict his sworn statement before a standing Senate Committee constitutionally charged with oversight of the PUC. He is a fraud, he perjured himself, and he should be stripped of his position immediately.

Boscola called on Governor Rendell and Senate leadership to act before irreparable harm is done to millions of consumers in Pennsylvania.

Both Powelson and Wayne Gardner were confirmed by the Senate as the two newest members of the PUC on June 30th. Powelsons term expires on April 1, 2009.

It’s more than fitting that Commissioner Powelsons term ends on April Fools Day in 2009, Boscola said. He thought he could fool the Senate and Pennsylvania’s ratepayers, but he has blatantly betrayed the public trust and violated his oath of office. I am appalled at his duplicity and his deceit. He is clearly a puppet in the pocket of the states big power companies. I would hope that if he has even a shred of integrity left, he will resign before he is publicly disgraced and impeached.

Just days ago, Powelson testified before a contentious public hearing held by the House Republican Policy Committee on the pending removal of electric rate caps. According to a news article in the Pottstown Mercury, when lawmakers questioned him about the expiration of electric rate caps in 2010:

Robert Powelson, one of five commissioners with the state's Public Utility Commission, responded there's no free lunch for customers.

Powelson, who is tasked with regulating the state's numerous utilities, later said, We need to understand and trust the marketplace.

If costs are capped in other areas, such as transmission and distribution, some power companies will go bankrupt, he said.

I am more concerned about bankrupting my residents and business owners, said [State Representative Jay] Moyer, who represents a portion of Montgomery County.

Another lawmaker said senior citizens would suffer as well.

Not only were his public statements untrue and misleading, according to Boscola, but they contradict Powelsons own sworn testimony before the Senate Consumer Protection Committee at his confirmation hearing.

Boscola pointed to Powelsons written testimony and subsequent statements in response to committee members questioning about the PUCs role in mitigating the rate shock facing electric customers when their monthly bills increase by 50 percent once rate caps expire:

Since my nomination back in September, I have spent countless hours traveling this great Commonwealth meeting with business and community leaders to chat with them about issues surrounding energy, telecommunications, water infrastructure - just to name a few.

I have also met with Pennsylvania ratepayers both small business and homeowners alike who want reliability and consistency in their electric bill. It is critically important that the PUC have effective oversight over the utility industry
to guard the consumer from exploitation.

My objective as a PUC Commissioner is to be fair and balanced. I recognize that
consumer protection is a very important aspect of my role as a Commissioner.

Therefore, we have a responsibility to implement policy and balance the perspectives of residential and business ratepayers alike.

The smoking gun that directly ties Powelson to perjury charges and impeachment came to light when the Commissioner was interrogated further, Boscola said. As the newspaper account reported:

           Rep. Tim Hennessey of the 26th District asked Powelson what is being done to mitigate increases in power bills. The commissioner declined to elaborate, saying he wasn't diving into it.

That was all the proof Boscola needed.

When rate caps come off, 85 percent of Pennsylvania’s electric customers will see their bills soar by as much as 70 percent, she said. Small businesses and industrial customers will see their electric rates double overnight. Businesses will be forced out of business and thousands of jobs will be lost when industrial plants are forced to close down. The last thing Pennsylvania needs is a PUC Commissioner being a cheerleader for the economic train wreck approaching in 2010.

Boscola, who has served as the Minority Chair of the Senate Consumer Protection Committee for the past ten years, also criticized Powelsons lack of knowledge about the much-publicized failures of electric deregulation in surrounding states over the past few years.

When rate caps came off in Maryland, electric bills increased by 85 percent, she said. Rates increased in Connecticut by 79 percent. In Delaware and Illinois, rates skyrocketed by nearly 60 percent. These are the facts, not some propaganda put out by the big power companies. For Commissioner Powelson to display such ignorance only 30 days into his term on the PUC is an embarrassment and a disgrace. The people of Pennsylvania deserve an intelligent and impartial voice on the PUC that is not controlled and told what to say by big energy companies that are already making record profits while their rates are still capped.

Fixing the broken promise of electric deregulation is a complex and daunting task facing the state legislature. Not only do I doubt the intelligence of someone whos only been on the job for 30 days, but I totally distrust his motives and his blind allegiance to Pennsylvania’s power companies. He must be removed from the PUC before irreparable harm is done to millions of consumers in Pennsylvania.

Not only is Commissioner Powelson a liar and a fraud, he is reckless and wrong. The people of Pennsylvania deserve someone with backbone and integrity on the PUC to fight for what is fair and reasonable. Power companies deserve to make a fair and reasonable profit - and consumers deserve fair and reasonable rates. I urge ratepayers, small business owners and plant workers who want to keep their jobs to join me in calling for Commissioner Powelson to be removed from his position immediately, if not sooner.

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