PPL says 2010 rate hike will be less ...

PPL says 2010 rate hike will be less than expected

There are 28 comments on the The Morning Call story from Apr 3, 2009, titled PPL says 2010 rate hike will be less than expected. In it, The Morning Call reports that:

Residential electricity prices for PPL customers are expected to climb by 30 percent in 2010, which will cost the typical household an extra $384 a year, the company announced Thursday.

Join the discussion below, or Read more at The Morning Call.

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tom

Philadelphia, PA

#1 Apr 3, 2009
30% is still too high of a rate increase!
idlemyndz

Allentown, PA

#2 Apr 3, 2009
tom wrote:
30% is still too high of a rate increase!
Still cheaper than most utilities in the northeast
costly entitlements

High Point, NC

#3 Apr 3, 2009
PPL is, even after their recent personnel cutbacks, overstaffed, and clogged with middle management bureacratic personnel.
Terminator

Allentown, PA

#4 Apr 3, 2009
I trust them like I trust a rattlesnake and I trust the rattlesnake more. Because I know where it is coming from, it is noyt lying.
Terminator

Allentown, PA

#5 Apr 3, 2009
Should be not instead of noyt.
SmokersAreLosers

AOL

#6 Apr 3, 2009
ONLY 30%???

Tell that to a single Mom who's making $7.50 per hour to feed her kids!!
Jim

United States

#7 Apr 3, 2009
Only a 30% increase? This leaves me with a much more warm and fuzzier feeling. Remember the Morning Call April 3rd, 2008 headline "Unadulterated Greed"
TheHotSteppa

Harrisburg, PA

#8 Apr 3, 2009
gee, thank you ever so much for your shedding of mercy upon the middle-class in these tough times. 30 percent. wow. thanks.
reddy k

Stroudsburg, PA

#9 Apr 3, 2009
They needed to lower the estimate to make room for the new cap and trade increases coming to us from our new hope for change government! I have no fear, I know Ms. Boscola will fight any carbon tax that comes our way!!!
Won't she?
minesweep

Allentown, PA

#10 Apr 3, 2009
If deregulation hadn’t happened there would have been regular wholesale market price increases during the past 10-12 years. The savings for PPL customers over that time period is an estimated 7 billion dollars. That is according to PUC chairman James Cauley who held a Capital Blue Cross Public Affairs Forum last year.
Charles

AOL

#11 Apr 3, 2009
Give me a break! Like the oil companies, smoke and mirror excuses to raise prices. This is an industry that needs regulation and more regulation. My $168 March bill would be $50 more. The moment solar electric becomes widely available, I will buy into it unless PPL and other electric companies buy the patents up and hold up solar electric from consumers. Jeeze, isn't that what GM, Ford did to electric car patents in the 70's, 80's, 90's????
Doug Kirschman

Hazleton, PA

#12 Apr 3, 2009
SmokersAreLosers wrote:
ONLY 30%???
Tell that to a single Mom who's making $7.50 per hour to feed her kids!!
You know PPL has MANY programs for low income people. LIHEAP, OnTrack, Operation Help, etc. You will have to go through income verification,

On a side note... Did the oil companies consult single moothers before raising oil prices from $18 a barrel in 1999 to the current $52 a barrel?

How about the producers of natural gas and coal as their products have undergone similar price run-ups in the last decade? Does a car still cost what it did 10 years ago? How about rents? I didn't think so.

As long as Americans are sheltered from the true cost of energy, we will continue to waste it.

Take your electric bill and go to PPL's website and completely fill out the energy analyzer. Study the daily and hourly usage charts. Follow the tips. I am almost certain one could eliminate about half of the proposed increase just by simple conservation.

Just to point out a simple fact. Even if PPL's rates go up by 40 percent, they will still be less than PECO and Met Ed.

“Reality is subjective”

Since: Aug 08

Philadelphia, PA

#13 Apr 3, 2009
Well Doug, I just feel all gee wiz terrific and bubble gum happy that you explained it all to us.

PPL Employees live in the SHELTERED reality you speak of.

PPL likes to speak of averages and how it's "only" 30%.

Did they give a 30% raise to their employees? No. They FIRED 250 of them with about as much grace as people take when flushing the hopper.

Does PPL CARE about a valley that's supported THEM for over 75 years?

Enough mudd slinging. Let's put it like this...

PPL has a monopoly on it's service territory. The generation they speak of buying, they make, so the people they talk to for power is their own.

I'd love to have a family member give me a raise!

A post here said, PPL needs to be REGULATED. REGULATIONS prevent EXACTLY what is happening here which is rate rape (similar to what LILCO pulled in the 80's).

The electric utility industry was regulated. When it was, stocks climbed, split, climed some more, split more and made for great long term solid investments against inflation, recession and so on. The electric industry was a supporting leg of the USA.

It worked.

Reagan and other deregulating advocates BROKE it. And here we are....

Lastly, DOUG, PPL.... rather Pennsylvania Power and Light always had mid range rates, very few outages, and equipment that worked. And GAINFULLY employed over 9000 people.

Today's PPL, the joke, a pale memory of the company it came from, isn't about power, service, or community. It's about bonus, money, and shareholder return (a statement made by all CEO's since Hecht).

I can only hope that Pres. Obama will change all that.
4REAL

United States

#14 Apr 4, 2009
SmokersAreLosers wrote:
ONLY 30%???
Tell that to a single Mom who's making $7.50 per hour to feed her kids!!
Cut out the smokes and booze then. If you want electricity you have to pay for it. It's not a god given right to get electricity. Do you go in and b*tch at how much milk costs? Nope you make do because you "need" it. That's whats wrong with this country everybody wants things for free!
4REAL

United States

#15 Apr 4, 2009
minesweep wrote:
If deregulation hadn’t happened there would have been regular wholesale market price increases during the past 10-12 years. The savings for PPL customers over that time period is an estimated 7 billion dollars. That is according to PUC chairman James Cauley who held a Capital Blue Cross Public Affairs Forum last year.
Right! I'm glad there are people like you out there who understands whats going on and doesn't come on here looking for a handout from the government
4REAL

United States

#16 Apr 4, 2009
stevej61 wrote:
Well Doug, I just feel all gee wiz terrific and bubble gum happy that you explained it all to us.
PPL Employees live in the SHELTERED reality you speak of.
PPL likes to speak of averages and how it's "only" 30%.
Did they give a 30% raise to their employees? No. They FIRED 250 of them with about as much grace as people take when flushing the hopper.
Does PPL CARE about a valley that's supported THEM for over 75 years?
Enough mudd slinging. Let's put it like this...
PPL has a monopoly on it's service territory. The generation they speak of buying, they make, so the people they talk to for power is their own.
I'd love to have a family member give me a raise!
A post here said, PPL needs to be REGULATED. REGULATIONS prevent EXACTLY what is happening here which is rate rape (similar to what LILCO pulled in the 80's).
The electric utility industry was regulated. When it was, stocks climbed, split, climed some more, split more and made for great long term solid investments against inflation, recession and so on. The electric industry was a supporting leg of the USA.
It worked.
Reagan and other deregulating advocates BROKE it. And here we are....
Lastly, DOUG, PPL.... rather Pennsylvania Power and Light always had mid range rates, very few outages, and equipment that worked. And GAINFULLY employed over 9000 people.
Today's PPL, the joke, a pale memory of the company it came from, isn't about power, service, or community. It's about bonus, money, and shareholder return (a statement made by all CEO's since Hecht).
I can only hope that Pres. Obama will change all that.
How will regulation help? It won't! Electricity costs what it costs. If they spends $20 to buy something and they can only collect $10 for it they would not break even. My point is they would go to the PUC and show this at a hearing at which time the PUC would review and determine your rates would have to go up anyway. How does Regulation work for you? It doesn't. I don't see any difference. Fact is if rates would have rose 3% the last 10 years the handout begging crybabies on here wouldn't have sh*t to say! Where is the Big Bad Boscola in all this? Funny she was making all this noise last year but now nothing....why is that?
minesweep

Salfordville, PA

#17 Apr 4, 2009
stevej61 wrote:
PPL likes to speak of averages and how it's "only" 30%.
Did they give a 30% raise to their employees? No. They FIRED 250 of them with about as much grace as people take when flushing the hopper.
PPL did not increase the wholesale price market price for electricity during the past 10-12 years.

PPL employees received raises over each of the past 10-12 years. I would guess that they totaled 30% or more.

All companies that operate in an unregulated environment reduce the employee head count when their services are no longer required. Why should PPL be any less efficient in their operations?
minesweep

Salfordville, PA

#18 Apr 4, 2009
stevej61 wrote:
PPL has a monopoly on it's service territory. The generation they speak of buying, they make, so the people they talk to for power is their own.
I'd love to have a family member give me a raise!
Perhaps it’s because there are no lower bids that are available.

PPL Electric Utilities operates on it’s own and is financed on its own. PPL cannot cross-subsidize. There are strict legal separations between PPL Electric Utilities and the rest of the company. The separations are in place to protect customers of the regulated utility from being exposed to the risks on the unregulated side of the business. Customers no longer bear the financial risk of maintaining existing power plants or building new ones. The company shareholders assume that risk.

”State law requires PPL Electric Utilities, which does not own power plants and does not generate electricity, to buy power in the competitive market for its customers who do not select an electricity provider. The cost of this electricity supply is passed directly to customers without profit.”

“Pennsylvania consumers have the option to shop for electricity supply as an alternative to the default service prices offered by PPL Electric Utilities.”

”Customers of PPL Electric Utilities have few competitive options for electricity supply today because the company's generation charge for default service remains under a rate cap that was established in the 1990s.”

“Electricity suppliers have had to deal with increasing market prices for electricity in the last decade, and so have been unable to offer prices that can compete with PPL Electric Utilities' capped below-market rates, which will remain in effect through the end of 2009.”

“Rate caps already have ended for six electric utilities in Pennsylvania, and competition is growing in those areas. For example, according to the Pennsylvania Office of Consumer Advocate, more than 20 percent of Duquesne Light's customers in the Pittsburgh area have chosen other electricity suppliers.”

“The increase in costs to generate electricity is driven largely by higher costs for the fuels used to make electricity - coal, natural gas, oil and uranium - and because demand for electricity is rising faster than new supply is being built. Generators also are facing higher costs for materials and equipment and stricter environmental regulations.”

http://www.smartbrief.com/news/aaaa/industryP...
minesweep

Salfordville, PA

#19 Apr 4, 2009
It could be worse:

72% rate increase for customers of
Baltimore Gas & Electric Company in Maryland

59% rate increase for customers of
Delmarva Power & Light Company in Delaware

75% rate increase for customers of tiny
Pike County Light & Power Company in Pennsylvania

http://www.oca.state.pa.us/Testimony/2009/Ele...
minesweep

Salfordville, PA

#20 Apr 4, 2009
stevej61 wrote:
A post here said, PPL needs to be REGULATED. REGULATIONS prevent EXACTLY what is happening here which is rate rape (similar to what LILCO pulled in the 80's).
The electric utility industry was regulated. When it was, stocks climbed, split, climed some more, split more and made for great long term solid investments against inflation, recession and so on. The electric industry was a supporting leg of the USA.
So in effect you’re saying that the company would have done better under regulation during the past ten years because the PUC would have allowed those wholesale price increases (that have been frozen) to be passed on to the customers.

Actually, the stock price rose and fell during regulation and after deregulation. Whether it was during regulation or after deregulation it was the economy that determined the price level of the stock. The last two stock splits were in May of 1992 (during regulation) and in August of 2005 (during deregulation).

Take a look at the link to the chart shown below. You’ll notice that the stock price from 1971 through the end of the 20th century didn’t achieve much under regulated a environment.

http://bigcharts.marketwatch.com/quickchart/q...

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