Electric bills going up, and Peco feels your pain

Electric bills going up, and Peco feels your pain

Sep 11 - McClatchy-Tribune Regional News - Valerie Russ Philadelphia Daily News

Peco Energy yesterday filed a comprehensive plan with the state that could change the way the company buys power and that it says will help consumers cope with higher electricity bills after the current rate cap expires in December 2010.

The company also called on the Legislature to pass a comprehensive energy law this fall.

The filing with the state Public Utility Commission seeks to allow Peco to purchase its energy when lower rates arise on the wholesale market. The utility, which does not produce its own energy, currently is limited in how often it can buy its power.

Peco filed the proposal to deal with the expiration of rate caps in 2010 that have been in effect since 1997.

Cathy Engel, a Peco spokeswoman, said the company wants to "help ease the transition to market-based rates for customers." One way to do that, she said, is to give customers the option of spreading the first year's increase over the next two or three years to give them time to adjust their household budget.

The plan also calls for a multi-million-dollar consumer-education campaign through 2012 to raise awareness of rate increases and tell customers how to conserve power.

Peco's plan includes measures to enhance a program that discounts rates for low-income customers, Engel said.

The statement and PUC filing came one day after Gov. Rendell, Mayor Nutter and consumer advocates urged legislators to approve new energy laws to counter an anticipated 20 percent or more increase in electricity bills starting in 2011.

On Tuesday, Gov. Rendell told the state House Environmental Resources and Energy Committee that the pending increase was "a crisis" and warned that consumers could see increases as high as "50 percent or more in some cases."

Jennifer Kocher, a PUC spokeswoman, said Peco was required to file its energy plan for customers who don't choose an electric supplier.

It's what the PUC calls Peco's "default service plan."

"The existence of the rate cap has kept rates beneath market value," Kocher said. "We aren't seeing a lot of competition [from electricity providers] in areas where the rate caps are still on."

But in areas where the rate caps have expired, more competitive suppliers are coming into those markets, Kocher said.

It could take several months for the PUC to review the plan Peco filed yesterday, Kocher said.