Pennsylvania decision-makers' poor understanding of the electricity industry led them into a big mistake 13 years ago: giving up the state's authority to control electricity-generation prices. Consumers were promised a competitive retail electricity market that would restrain prices. The warnings that such a market would not develop went unheeded, but they turned out to be correct.
Now Pennsylvania is approaching the end of the purported transition to full deregulation, with electricity monopolies still in place. In the PPL service territory, that will mean a 30 percent rate increase for residential customers in January. Other utilities, such as PECO and FirstEnergy (including Met-Ed and Penelec), will go to full deregulation in January 2011.
Unfortunately, the governor and the General Assembly are essentially ignoring the problems that will accompany full deregulation.
Monday, December 28, 2009
Energy changes will shock
From the Philadelphia Inquirer: