How do higher power bills sound? And would you like kicked in the groin, too?
Within in a year anyone who isn’t part of an electric consortium (like the Somerset Rural Electric Cooperative) will have to pay around 50 percent more for energy.
That’s because rate caps that have been in place for 13 years expire by the end of 2010. Energy providers will then be in charge of price jumps.
Penelec is already offering a program where users can horde a surplus of money for the expected increase. A representative said to expect 30 to 50 percent hikes in power bills.
A company spokesman said in June that taking the rate caps off is fair for Penelec because their prices have been frozen for years.
After the caps come off, the market will dictate power costs — and the market is a hostile place.
State lawmakers need to address this issue before power customers are faced with outstanding power bills. A compromised cap or the introduction of competition from other energy providers might be possibilities. Energy cooperatives are attractive alternatives as well. Something needs to be done before it is too late.
-Rick Kazmer
rickk@dailyamerican.com