Democratic candidate for Governor Tom Knox just launched a website to promote the extension of electric rate caps. The site, stoptheparipoff.com, ignores the cost of extending rate caps and is full of misleading stats. For example, Knox's site claims, "Experts predict deregulation will increase electricity rates up to 65%, with consumer advocates arguing the increase will be closer to 100%."
In reality, PPL customers will see a 30.4% increase according to the utility and PUC estimates after rates capes expire (which is only slightly higher than the price before rate caps, adjusted for inflation). And PECO customers in Philadelphia could see a decrease in electric rates if current market trends continue.
- Extend caps electric rates increase for 3 years, limiting increases to the cost of inflation plus 1.5%. [This would continue to stunt competition and push inevitable rate hikes further down the road. In the long-term phase-in plans do little to mitigate the cost to consumers, and could produce legal action from utilities who have made critical decisions based on the current timeline.]
- Create a state Power Purchase Authority that will obtain electric generation for all residential customers, leveraging the state’s significant buying power for lower rates and pass the cost savings onto customers. [Businesses are already pooling their buying power to obtain more reasonable rates, why get the government invovled?]