A question about electric deregulation..

[YankeeMagic]

My father-in law keeps telling me our state (PA) is deregulating electric by the end of 2011 and that we are going to see a 30% increase in rates. I can;t seem to find anything about this anywhere. I always thought deregulation was a good thing...

[FocusNexus]

Deregulation is a good thing. This sounds like a scare tactic.

[Faith-Hope]

Texas has been deregulated for a good while. I waited several years to change from our local company. About a year ago this company began to raise their rates. I got on the Internet and found I could lock in a much cheaper rate for one year. I changed and could not see any difference except a much cheaper bill.

[FocusNexus]

More info re. PA:

http://energy.cas.psu.edu/facts.html

[texas booster]

Six utilities in PA are already deregulated.

Regulated utilities lose money right and left when prices suddenly advance, if they did not properly hedge their energy fuels.

IIRC, PA has a lot of nuclear so you won't have many problems.

In Texas the gutless PUC tied new energy generation to natural gas prices in the late 90’s, which was a great idea then. Now they won't change the formula, so coal and nuclear based utilities are very profitable. Newcomers get blasted since they can get permits for nat gas plants only.

TXU and Reliant practically own the PUC so they get whatever they want.

We need a lot of new generators in Texas and a lot of new transmission lines, which will cost consumers a bundle.

I don't know the needs of PA, but if the politicians get involved hide your wallet.

And if there is money involved, then politicians will be near.

[YankeeMagic]

Thats kind of what I thought as he tend to lean Left on most things.

[YankeeMagic]

I found this:
Pa. Dems warn of electric bill ‘shock’ as rate caps end
Tuesday, July 01, 2008
By Tom Barnes, Pittsburgh Post-Gazette
HARRISBURG — Senate Democrats say something must be done to ease the “electric rate shock’’ that is coming to most parts of the state in 2010, when the current caps on rate increases expire.

“The jump in electric rates will be the equivalent of the biggest tax increase Pennsylvania has ever seen,’’ contended Sen. Vincent Fumo, D-Philadelphia, who was supported at a news conference today by Sens. Jim Ferlo of Highland Park, Sean Logan of Monroeville and Wayne Fontana of Brookline.
http://www.post-gazette.com/pg/08183/893977-100.stm?cmpid=latest.xml

[WayneLusvardi]

Deregulation won’t work in a state like California which must import electricity from other states; it can work in a state like Pennsylvania which has abundant sources of coal and exports electricity. As recently revealed by no less than the U.S. Supreme Court, energy traders like Enron did not cause the 2001 California Energy Crisis. Neither did deregulation per se. It was caused by the state legislature and a weak governor.

[meyer]

I always thought deregulation was a good thing...

Deregulation would be a good thing if it were truly de-regulation. But in the case of electricity, it's anything but deregulation.

When the government steps in to prevent the building of needed power plants using the junk science of "gloBULL warming", then it isn't a free market. When the government places a moratorium on shutting power off to people that refuse to pay for what they've already used (and forcing other customers to pay for it indirectly), then it isn't a free market. When the government forces a utility to provide power transmission and distribution to their "competitors", then it isn't a free market.

[texas booster]

They are idiots and grand standers to say such a thing.

The cost of energy is going up, whether the emperor likes it or not.

If the rate cap stayed in place then the utilities would lose money eventually.

Just wait until PA becomes a net importer of electricity, instead of an exporter. That's what Texas is facing in 2011-2013, and prices can get crazy high then.

If you are a business lock in a 4 or 5 year rate now, or at least when we start to cool off this fall.

If a home then get a two year rate ASAP.

[YankeeMagic]

I will look into that, not sure how it works here in PA

[count-your-change]

Better find out how the word “deregulation” is being defined. The deregulators may have their own dictionary.

[RichardW]

I live in Texas. We have deregulation here and we got hammered badly. I don’t know who the culprits are but I’m paying the highest electric rates I have ever paid. And I have checked around. You can check powertochoose.com to see the available Texas rates for a preview of what you may see there.