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.
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