Nationwide Electric Rate Hikes

Nationwide, electric rate hikes will take effect, January 1, 2010. In PA, PPL Electric offers a new deferral option that isn't very welcoming. It is said to aid consumers as they adjust to the 30% price hike but not without penalty. You will be charged 6% interest and must sign up before December 15, 2009. What this means (for those bad at math) is an extra $30 per month if your bill is $100. However, if you choose the deferral option, interest would only be $1.89 for those using 301-800 kw-hours and your payments would be deferred, for amounts that increase over 25%, apx. $2.01 in this example. As you can see, the deferral option is not very helpful. Americans are not so strapped that $2 makes a difference but strapped enough that $30 does.

The only alternative is to find another electric supplier, which can prove to be very difficult. Much like health insurance providers, only worse, electric providers are close to if not considered a monopoly. The big ones scoop up the little ones for lunch. In northeast/central PA, there is no competition for PPL electric. It is true that Americans consume the most energy in the world and need to conserve energy. So, I ask Obama, why stop at healthcare or banning flavored cigarettes? Your next battle should be energy monopolies and controlling cost in this arena! The next step would be delving into alternative energy.

PPL does say they will offer home weatherization programs for customers and provide fluorescent light bulb discounts (big whoop). PPL services 1.4 million in Eastern and Central PA. They do have an Energy Analyzer but I question its accuracy. Utilizing this service myself, it allotted cooling cost for me when I hadn't even used my air conditioning. This leads me to believe it is only an estimate of what they think the average consumer is using in electricity.

I encourage electric customers in PA to check out PA Office of Consumer Advocate to find competitors for electricity service. PPL has warned customers that this day would come as rate caps expire. However, this pricey electric rate hike comes at a very rough time for Americans, especially those in Eastern and Central PA where good jobs are scarce.