GOV. RIDGE RECEIVES ANNUAL REPORT ON ELECTRIC COMPETITION

N E W S R E L E A S E
COMMONWEALTH OF PENNSYLVANIA
OFFICE OF THE GOVERNOR
Commonwealth News Bureau
Room 308, Main Capitol
Harrisburg, PA 17120

FOR IMMEDIATE RELEASE
CONTACT:
Tom Charles, Editor Commonwealth News Bureau (717) 783-1116

Deb Snyder, Revenue Press Secretary (717) 787-6960

GOV. RIDGE RECEIVES ANNUAL REPORT ON ELECTRIC COMPETITION
THAT SHOWS CONTINUED JOB GROWTH, SAVINGS FOR PA
Electric choice will help create 40,000-plus jobs by 2005

HARRISBURG (Aug. 6) -- Secretary of Revenue Larry P. Williams today announced that the second annual report to Gov. Tom Ridge and the General Assembly, "Electricity Generation Customer Choice and Competition," shows electric choice will help create more than 40,000 jobs by 2005.

"Our latest report shows electric competition continues to have a positive impact on Pennsylvania," Secretary Williams said. "Last year's report projected electric competition will create more than 36,000 new jobs by 2004. This year's projections continue to show the economic benefits of the No. 1-in-the-nation electric-deregulation plan proposed and signed into law by Gov. Ridge.

"Savings from electric competition give consumers and employers more money to spend, creating multiplier effects on the state economy and reducing business costs, giving employers more money to invest."

The new report studies the impact of Act 138 of 1996 during the period 1997-2005. Models used for the report show that the forecast reductions in retail electricity prices lead to the following economic impacts in Pennsylvania by 2005:
? The real gross state product will be $2.3 billion higher;
? Overall employment will increase by 40,700 full-time and part-time
jobs;
? Nominal personal income will increase by $1.8 billion;
? The price index will decrease by 0.5 percent; and
? The population will increase by 56,000 people, as workers are attracted to job opportunities in Pennsylvania.

The report also notes larger Sales Tax and Personal Income Tax collections.

On July 16, Gov. Ridge joined Vice President Dick Cheney in Allegheny County for a national town meeting on President Bush's National Energy Policy. "It's no surprise why the President chose Pennsylvania to
conclude the rollout of his National Energy Policy in May," Gov.
Ridge said at the national town meeting. "And it's no surprise why Vice
President Cheney is in Pennsylvania today for this important town meeting with our entire nation.

"Pennsylvania is a national leader in both energy and the environment. We are the No. 1 state in the nation for electric competition. Our electric-
competition plan has saved employers and families $3.8 billion, while ensuring a strong supply. And, at the same time, we are forging a new environmental partnership, with forward-thinking initiatives like Land Recycling and 'Growing Greener.'"

More than 130,000 Pennsylvanians now use cleaner and greener forms of power, more than any other state. Pennsylvania also is the first state to deregulate both electricity and natural gas.

Gov. Ridge led the push for electric competition and, in December 1996, signed the Electricity Generation Customer Choice and Competition Act. The Electric Choice Program went into effect in 1998. Prior to the enactment of Act 138 in 1996, Pennsylvania's retail price of electricity exceeded the national average.

Under the Ridge Administration, Pennsylvania families and employers have saved $17 billion through tax cuts, workers' compensation reform, reduced red tape and electric deregulation. These savings have helped to create nearly 500,000 new jobs.

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2001