The benefits of allowing the marketplace to set the rates for Pennsylvania's electric industry was the topic of this week's state House Republican Policy Committee hearing.

The hearing was cochaired by Reps.

Mike Turzai, R-28th, chairman of the House Republican Policy Committee; and

Scott Hutchinson, R-64th, Republican chairman of the House Environmental Resources and Energy CommitteeThe hearing was held to discuss the best ways to help smooth the transition from a state regulated industry to a competitive market as the rate caps are removed, Turzai said.All of Pennsylvania's rate caps are to expire by 2011.Among those who testified were experts from the energy industry.One option, which could be the reduction of the utility gross receipts tax, was praised by members of the panel as a creative approach that could jumpstart competition.Allowing the marketplace to work without government interference was a common theme among all the testifiers."Competition has dramatically improved the operating performance of existing generating units and given incentive to the construction of new power generation, including alternative energy resources,"said Jan Freeman, Exelon Generation vice president.According to Aldie Warnock, external affairs vice president for Allegheny Energy, western Maryland recently went through the deregulation process. He stressed the importance of consumer education."People (in Maryland) did not even know they were under caps," he said."Rate caps have shielded consumers from the true cost of energy in many parts of the commonwealth for a decade," said Doug Krall, manager of regulatory strategy for PPL Electric Utilities.Hutchinson and Turzai agreed competition is key to improving Pennsylvania's energy market.———The state Senate Judiciary Committee this week approved a bill, co-sponsored by Sen.

Bob Robbins, R-50th, that would provide for a constitutional amendment defining marriage as a covenant between one man and one woman.Robbins said he has received "a tremendous amount of correspondence on this issue"from constituents."The overwhelming majority of the people,"he said, "have indicated their belief that marriage should exclusively involve the union of a man and a woman and that it holds a sacred place in our society."The Judiciary Committee also approved legislation that would create the new criminal offense of illegal dumping of methamphetamine waste on any property; making it a third-degree felony.The bill provides for exemptions for licensed pharmaceutical companies, and any dumping performed under the color of state or federal law already promulgated.The Senate Appropriations Committee on Tuesday also approved a bill co-sponsored by Robbins that would amend the state constitution to change the succession process for the lieutenant governor.———Members of the U.S. House of Representatives and Senate sent bipartisan letters to the Center for Medicare and Medicaid Services asking it to release data on how its new competitive bidding program will impact thousands of firms.Led by Rep.

Jason Altmire, D-4th, the House letter had 119 cosigners.This month, the center will Award its first round of bidding contracts in 10 metropolitan statistical areas, including Pittsburgh, based on a supplier's ability to cut prices.Because this criteria favors large national firms, thousands of local suppliers will not receive contracts and will lose their ability to sell to Medicare patients, a population that often accounts for the majority of their business.Altmire said this could force thousands of small suppliers to close, thus jeopardizing patients' ability to receive quality, personalized service close to home.The center estimates that about 85 percent of registered suppliers qualify as small businesses."Although (the center) and the Small Business Administration raised special considerations for small suppliers during the rule-making process, we continue to believe that these steps will not guarantee adequate participation for small businesses," the House letter said."This will result in a number of small medical device providers going out of business, severely impacting patient access to necessary equipment and quality care."