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Wednesday, April 22, 2009

Electricity: Phase-In Legislation Passes Committee

Yesterday, the Consumer Affairs Committee unanimously approved legislation that would phase-in higher electricity rates over a three year period. Rates for PPL residential customers are expected to increase about 30% next year. While PECO, Met Ed and other utilities could see an increase anywhere from 1%-36% at the end of 2010.

While the short-term benefits to consumers are appealing this measure is really just a political stunt that does nothing to address the bigger problem, that is transitioning the electricity industry from a highly regulated industry to a consumer driven sector.

In fact, delaying the full expiration of rate caps could end up being more expensive as bill allows utilities to recover the "deferred" costs from consumers .

1 comment:

Anonymous said...

My point has been to my Rep and I have not approached any others, YET. Where is the accountability of the electric companies. PPL has gotten increases over the past few years to "correct and reevaluate the infastructure needs and find economic ways to correct them,so that the consumer will not be hit by large increases. These people knew these caps were coming off but started sucking money years ago and the PUC has allowed for every increase the requested. But, there is no accountablility of them to show that what they asked for the increases for over the past few years have done anything but sure up their bottom line, by replacing meters with ones that are evaluated from their office. The only reason I khow about that one was because I got a huge bill and complained they sent a man out to see and he said "oh you are still on the old meter system" they changed it and adjusted my bill to an average of my usage from the last years ammount used. The PUC considered this to be a reasonable attempt to settle the dispute and wanted to hear nothing more about it. If you try to contact them about the rate increase they say you must contact your Represenatives in Harrisburg.

This whole deregulation of this utility is a crock unless we get some viable resources and that just like the phone company PPL is required to allow for complete use of equipment on a lease basis so you have one company handling all aspects of service. Bell/Verizon was required to lease the lines and space in their switching stations to other companies at a discounted rate in order for these other companies to be able to offer comprable rates. That was true deregulation. What can be done since no one seems to want to be accountable for this?