Because a growing number of Pike County Light & Power consumers are seeking help with their bills, the Public Utility Commission this week reinstated the Pike County Light & Power's Low Income Pilot Program.

Pike County consumers are trying to cope with a 129 percent increase in their electric rates brought about by the end of caps imposed by electric deregulation in 1996. The Pike County Light & Power Company, in somewhat unique circumstances, went to purchase electric in the competitive market for their entire load from New York’s electricity market at a time when prices were high.

"Pike County consumers are faced with unprecedented increases in their electric bills that has left many families seeking help in paying their bills," said Commissioner Bill Shane. "Restoring the Low Income Pilot Program will help needy families by providing an opportunity to have their arrearages forgiven."

"The spike in electric prices in Pike County has left many low-income families who had been struggling to get by unable to make ends meet," said Commission Chairman Wendell F. Holland. "Reinstating this program takes the steps necessary to allow those who are in need to get the help they need."

The Commission also directed the company to continue providing assistance to qualifying Pike consumers through its Neighbor Fund, increasing the benefit by $200 for residential electric customers and by $300 for heat customers. The Neighbor Fund provides crisis grants to customers who are unable to pay their electric bills.

The Commission is continuing with its fact-finding inquiry into the competitive electric market in Pike County. The Commission is seeking ways to attract more and lower-cost choices for electric customers and the way power is purchased as well as the short and long-term electric generation supply outlook for the region.

Electricity rate caps are due to come off consumer bills in most areas of the state in 2010, along with the removal of stranded costs imposed as part of deregulation to allow utilities to recover the cost of their nuclear power plants. The difference between these charges in some areas of the state could result in increases in electricity rates anywhere from zero to 40 or 50 percent.

Power companies going into the competitive market to buy electricity have seen rates jump from 55 to 59 percent in Delaware and New Jersey respectively.

PUC Consumer Advocate Sonny Popowsky told the House Environmental Resources and Energy Committee recently that if the PUC does not take steps now to mitigate the impact of rate increases after the caps are removed, electricity rates could increase by over 50 percent.

NewsClip: Electric Costs Could Soar After Lifting of Rate Caps

PUC Looks Into Pike County Electricity Price Increase Issue

4/7/2006