Adjust Text Size

For Immediate Release
June 7, 1999

SENATE PASSES LEGISLATION TO DEREGULATE PA’S NATURAL GAS INDUSTRY

HARRISBURG -- The Pennsylvania Senate today passed legislation that would further deregulate the state’s natural gas industry, according to Senator White (R-21), who voted in favor of the measure.

Senate Bill 601 would give Pennsylvanians the ability to choose their natural gas suppliers, just as they are now able to choose their electric suppliers.

The legislation also would eliminate the Commonwealth’s 5 percent state tax on natural gas, White said.

The senator explained that industries and large commercial and institutional users have had the ability to choose their own natural gas suppliers for many years.

"While much of the benefit to homeowners will be derived from the tax repeal, there will also be opportunities for some consumers to shop for cleaner gas," White said.

Governor Ridge proposed eliminating the Gross Receipts Tax (GRT) on natural gas during his annual budget address earlier this year. The GRT is currently added automatically to the monthly bills of natural gas customers whose suppliers are public utilities. Senate Bill 601 would eliminate the GRT effective January 1, 2000, saving many families the equivalent of about one month’s natural gas bill per year.

The Senate Consumer Protection and Professional Licensure Committee, of which Senator White is a member, held a hearing on natural gas deregulation in March. John Quain, Chairman of the Public Utility Commission, testified in favor of the legislation.

The measure now goes to the House of Representatives for consideration.

CONTACT: Leigh Ramsey (717) 787-9684