Rising electricity rates and the PUC
The Public Utility Commission published a number of press releases yesterday addressing the expected rise in electricity rates.
- The Public Utility Commission finally gave PPL the go ahead to implement a voluntary rate stabilization plan. Customers would have the option of gradually increasing their electricity payments with the extra funds, plus 6% interest, being returned as credit on future electric bills.
-Mandatory consumer education plans from PECO and UGI were approved. These plans are suppose to educate consumers as they prepare to shop for their own electricity.
-Mandatory consumer education plans from PECO and UGI were approved. These plans are suppose to educate consumers as they prepare to shop for their own electricity.
-The Commission also approved a plan from Allegheny Power to encourage investment in alternative energy. Customers can purchase Alternative Energy Credits which will be used to develop alternative energy. The company hopes these efforts will give consumers an incentive to invest in alternative energy and bring the company closer to meeting AEPS goals. The government mandate requires companies to generate 18.5% of their power from alternative energy resources by 2021.
-And the Commission is planning to release comparisons between present electricity rates (set in 1997) and the current market price of electricity. These comparisons and the research behind them are expected to facilitate the transition to a competitive market.
Despite environmental regulations and the weight of detailed government oversight, utilities are continuing to develop innovative ways to deal with rising energy costs. Imagine what they could do without burdensome bureaucracy.
2 comments:
From the Allegheny Power Press release: "Under the plan, customers may voluntarily purchase blocks of 100 kwh of wind energy renewable attributes. The rate per block would be $2.50, which would be in addition to the regular monthly cost per kilowatt hour of electricity consumed by the customer. The customer will be able to designate any number of blocks to be purchased per month, up to 100 percent of the customer’s total energy used. The company will begin informing customers of the program through bill inserts."
What is a "wind energy renewable attribute" and why would I want to pay $2.50 for a block of it? Are these people so naive that they actually believe we're going to voluntarily pay more for something that sounds like it could be cow flatulence?
What are these people smoking?
A “wind energy renewable attribute” is simply a fancy way of saying expensive power. Essentially, customers will pay 2.50 per 100 kwh plus the regular rate for wind energy. For example, I could purchase 3 EAC’s or 300 kwh for $7.50 + the regular rate. The success of this program seems unlikely, but Allegheny Power must believe some customers will place a high value on green power. Businesses in every industry are eager to cash in on the green revolution. Clorox, for example, just released a new line of all natural cleaners. Will people voluntarily pay more for green power? Who knows, that’s the beauty of the free market. Competition increases the options so each consumer can choose to pay more for green energy or stay with cheaper electricity.
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