We all foresaw this happening. The mystery is why Governor Rendell chose to focus on building more gambling casinos and sports arenas.
If he had devoted the same energy to building a few nuclear generators, they’d be coming on line in a couple of years, and we’d have lower, not higher, electric bills.

The past Governor of Maryland Bob Erlich and the present Martin O’Malley fought to have the rate-caps continued, but were unsuccessful in the face of huge energy giants like BG&E. The energy producers argued that the rate-caps have prevented them from raising rates and keeping up with the huge cost of producing power. The rate increases were simply making up for lost ground.

The nuclear power issue is a touchy subject for a politician. There is still the “meltdown” fear associated with nuclear reactors and this is hard to overcome when you are trying to convince your constituency to agree with something few understand. Making matters worse, PA has the legacy of 3 Mile Island. Windmills, dams and solar power just don’t seem that menacing.

But the fact of the matter is nuclear power has come a long, long way since 3 Mile Island. Outside the US reactors are being built everyday and many have been on line for sometime with excellent safety records. It is time to take a closer look at this available power source. The working man can’t handle much more.
JP

Maryland’s experience provides some useful insight as to what Pennsylvanians can expect come 2010. With rates expected to rise by approximately 20 – 50 percent, it appears that more and more hardship is coming its way, especially to low – middle income individuals.

The rate caps were orignally signed into law to increase competition in the electric industry. This has not happened because the few power producing companies (PPL, Peco, UGI, etc) have maintained an iron grasp on their service territories. The rate caps, which will be completely phased out by 2010, have artifically kept electric prices low for a decade. When they expire, as they have in parts of Western PA, the price immediately jumps ten-fold.

The caps must eventually expire to allow electric prices to reflect its market value, and to get the state government out of the electric business, which I believe they never intended to become such a major part of. That being said, the caps need to be extended for five years and/or the rate INCREASE needs to be phased in over ten years, as to help consumers incrementally prepare for the jump. Further, the current increase in commodities, specifically the explosion of food and fuel prices, make this point in time an especially bad moment for a rate increase.

One final note, I truly hope people make themselves aware of this issue, contact their Representatives with their perspectives, and find out where they stand. I know everyone is busy with work and family, but your family budget may be heavily impacted depending on how this one plays out.

Those that heat there homes with Electric will now find out how much the people who pay for oil and Natural Gas have been suffering to subsidize low electric costs. What most people do not realize is that most power plants in Pennsylvania use oil and Natural Gas to run the plants that produce electricity. Everyone thinks electricity comes from Nuclear power but we have not built a single Nuclear Power plant since TMI in 1979. I am glad to see the suffering spread around to everyone. Those of us that have been paying through the nose for Home heating Oil and Natural Gas will not be the only people suffering. My family had to get part-time jobs to help pay for the cost while others enjoyed the windfall.

Amazing how the Democrats, who are completely responsible for keeping us from drilling oil wells offshore and in the polar wastelands, are still supported by the people whom they are ravaging with high gas and energy prices.
Amazing that anyone can complain about $4.00 gasoline and then vote for the very same people who intentionally voted repeatedly (ten Congressional votes in past few years) to STOP more drilling.
Those people, and their legislators, should be put into Webster’s as the new definition of “stupid”.

“Fuel Poverty”, a soon-to-be household term, will envoke a long stretch of economic hardship. Four dollar gasoline prices, skyrocketing cost of home heating oil, and the pending increase in electric prices after the removal of electric rate caps – this three punch combo – may be enough to finally knock-out the middle class. This is not the American envisioned by the founders, or by our beloved President Lincoln, who so favorable spoke of the ordinary man.

Allow one to make a political prediction on what is a truly incendiary issue:
Should these electric rate increases go into effect as predicted, the Pennsylvania General Assembly (to quote Charles Dickens) “will resemble an orchestra of scorched cats.”
Unless this legislative body takes forceful and uncompromising action to prevent this proposed corporate rape of Pennsylvania consumers, they might wish to prepare now (both Ds and Rs) for their exodus from public office, either by way of forced retirements or as mass casualties of a coming electoral bloodbath.
Matt Thomas

PECO had its cap lifted several years ago, so they shouldn’t be having 20% increases in the next few years. Oh yeah, and the utilitiy companies got legistlation passed during Rendell’s first term that gave them greater leeway to shut off customers, who the utilities claimed were costing them a lot of income.

Further, there is NO competition for providers. If you live in SE Pa, it’s PECO. In western PA, it’s Duquesne Light or First Energy or Allegheny Power, but not in the same areas.

There’s a reason utilities were regulated in the first place and now we know why.

pd