Allegheny Power has a plan.
With current rate caps set to expire this summer, the Public Service Commission wants power companies to prepare consumers for a new market.
This week, Greensburg, Pa.-based Allegheny joined Baltimore Gas and Electric, Pepco and Delmarva in having their plans approved and in position to act when prices begin to rise
Allegheny Power reaches more than 1.5 million customers in Maryland, Pennsylvania, West Virginia and Virginia.
Starting in June, Allegheny Power?s customers will see a rate increase of about 15 percent on their bills. This is about $11 per month more for someone with a typical 1,000 kilowatt-hour energy bill. This extra charge will go into an account that is set to accrue interest and help defer the initial costs on consumers? bills.
However, consumers do have the option to not participate in the program, avoiding the 15 percent increases, but not getting a cushion when market rates go into effect in January 2009. If they elect to go with the plan, they will see another 15 percent spike early next January. Running through the end of 2010, these payments will cushion the blow when consumers who choose the plan will join everyone else in paying the open-market rates.
Allegheny Power?s plan projects further into the future than BGE?s, which has already taken a deferment fee in July 2006. BGE?s rates are set to hit market value fully in January 2008. Deferment payments kicked in at the beginning of the year for its customers.
“We worked with the commission’s staff, the Department of Human Resources Office of Home Energy Programs, the Office of People?s Counsel and low-income advocates to ensure that customers are best able to manage their bills when rate caps expire,” Allegheny Power President David Flitman said in a statement. “The plan provides assistance for those who need it the most, our fixed-income and low-income customers.”
Reimbursements on the increases will also be available for customers who move outside of the service territory or to the estate of deceased residents.
More information
» Allegheny Power
1-800-255-3443
www.alleghenyenergy.com
