Why is the Cost of Gas and Electricity on the Rise Again?

With the rising costs of utilities, food, gasoline, and everything else there just does not seem to be an end in sight. Yet I listen with anticipation to the candidates that are running for the Presidency of the States, and none of them has come up, to the best of my knowledge, with a plan to help the average citizen survive. I want one, and I do not care which one gets in office to come out and say that they are going to lower my gasoline prices, that they are going to help my family and your family with the cost of heating and cooling our homes, that they are going to help the senior citizen get their medication without having to make a choice between food and the meds that they need to survive.

When I retired last year from the Federal Government I have a nice pension plan, better than a lot of my friends, I get a cost of living raise in January although it is half of what a working federal employee gets yet it is still something. Anyway, in January I received a 1.5% raise in my pension, the cost of living has risen almost 6% since that time. That generous 1.5% does not even make a dent in the cost that it takes to survive and I get a nice sum of money. I feel so sorry for those who are just starting out there is just no way that a young couple can survive without both of them working and heaven help them if they have children who are placed in a day care. Without an education and a decent career many young folks will find themselves working a full time job and a part time job just to make ends meet.

I live in Maryland and last summer Baltimore Gas and Electric Co. received the go ahead to raise electricity rates by 50%. Marylanders had the choice to either pay the full increase right away or spread it out under a deferral plan. I chose to take the hit in full. Since that time the cost of heating and cooling my home has risen expeditiously. Each month I see the cost going up and up yet I am using less and less. In January 2008, Baltimore Gas and Electric came out with a report that predicted that the average Maryland household would only face a mere $100.00 per year increase from last year around 5.5%. Then today we have just been informed that as of 1 June 2008, the cost will raise to almost 8% more to keep the air conditioner on during the summer for most customers of Baltimore Gas and Electric Co. According to Baltimore Gas and Electric they are forced to raise the price to reflect the rising cost of natural gas, coal and other fuels used to produce electricity. The wholesale electricity market, which has held Maryland hostage since deregulation allowed BGE to transfer its power plants to parent Constellation Energy,has so many problems that they cannot all be told, they operate in secrecy, allowing Constellation a near monopoly in metro Baltimore. It inflates prices to pay for plants that never get built.

Since last May many Marylander's have found that their utilities bill has risen well pass the 50% that they told us about in 2007, more than 1.1 million residential customer will be paying almost 88.5% more then we were before the deregulation legislation was passed way back in 1999. Baltimore Gas and Electric came out with a statement that said they were "giving back" to its customers $187 million dollars in the form of a one time $170 rate credit to the BG&E residential customers. Thank you so very much. I called Baltimore Gas and Electric this morning and specially requested information on my particular BG&E bill, they informed me that the rates that I am paying today will change to summer rates beginning the 1st of June and will continue at the summer rate until October 2008. That was already scheduled before the proposed 8% raise that is being calculated now. There just does not seem to be an end to the ever rising costs and there is no relief coming anywhere. I will take whatever solution is available and as with the rest of the country just want some relief.