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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 .