Electricity

In the late 1990s, Pennsylvania's electricity rates were 15% above the national average, despite the abundance of low-cost coal generation in the Commonwealth. At that time, electricity was sold by a monopoly utility provider in each designated region. Federal regulations then changed to allow electricity markets to develop. The state legislature responded with the Electricity Generation Customer Choice and Competition Act, signed in December 1996, promising lower prices and better service t

According to Pennsylvania's Public Utilities Commission, the annual cost of ownership for solar energy per kilowatt-hour is over 700% more than the cost of coal, and wind energy is almost 23% more expensive than coal. Meanwhile, state government provides more than $20 million annually for grants to alternative energy projects, and in 2008, Gov. Edward G. Rendell, a Democrat, signed into law another mandate for an additional $650 million to be given to "green" schemes. Try paying those hig

In the late 1990s, Pennsylvania's electricity rates were 15% above the national average, despite the abundance of low-cost coal generation in the Commonwealth. At that time, electricity was sold by a monopoly utility provider per designated region. Then federal regulations changed to allow electricity markets to develop. The state legislature responded with the Electricity Generation Customer Choice and Competition Act, signed in December 1996, promising lower prices and better service through g

In the late 1990s, Pennsylvania's electricity rates were 15% above the national average, despite the abundance of low-cost coal generation in the Commonwealth. At that time, electricity was sold by a monopoly utility provider per designated region. Then federal regulations changed to allow electricity markets to develop. The state legislature responded with the Electricity Generation Customer Choice and Competition Act, signed in December 1996, promising lower prices and better service through c

Concern about potential price hikes in the midst of a recession may motivate some lawmakers to push for legislation to halt or delay that expiration under the guise of consumer protection, but extending rate caps would be foolhardy.

Most Pennsylvania residents will soon see significant increases in their electricity bills. Many state lawmakers are concerned about the political backlash they will receive as a result. But it is important that both residents and politicians understand how we arrived at this situation and how best to resolve it.