HARRISBURG -- If you can pay an extra 45 cents a month now on your electric bill to save an estimated $6 a month later, would you do it?

Gov. Ed Rendell hopes so. As part of his ambitious plan to reduce reliance on foreign fuel, stem global warming, conserve energy and create jobs in the biofuels sector, the governor yesterday unveiled his plans for a utility surcharge.

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The surcharge, five-hundredths of a cent per kilowatt hour, would be used to finance an $850 million Energy Independence Fund that would provide grants and loans on a variety of energy-saving fronts. These would include expansion of energy companies; rebates for homeowners who replace old air-conditioners and refrigerators with energy-efficient ones; clean-energy projects; equipment for energy economic-development projects; and the purchase of solar panels for houses.

The monthly surcharge would be higher for commercial customers, about $3 a month on average. But the estimated savings would be higher, too: an estimated $35 a month. Industrial customers could expect to pay an average $74 a month for estimated savings of $875 a month.

That's good news for U.S. Steel Corp., said its director of government affairs, Chris Masciantonio. He noted that the governor's plan also addresses significant price increases expected in 2010 with the expiration of rate caps that were put in place when electric deregulation began in 1999 .

Mr. Rendell's plan also would require utility companies to install "smart meters" for consumers who want them. The meters allow variable rates for peak and off-peak use and would encourage consumers to use high-wattage appliances, such as dishwashers and washing machines, during off-peak times when rates are lower.

"Today, we do not have the tools to cut our energy bills by shifting energy use to times when costs are lower," Mr. Rendell said. "I want to help customers save money through smart metering and time-of-day [pricing] structures."

His proposal, which faces Legislative approval and regulatory changes, also would allow customers to enter long-term contracts for electricity and would require utility companies to invest in conservation measures.