Pennsylvania looks at cap rates
PENNSYLVANIA - Gov. Ed Rendell's chief of staff says a new law to help Pennsylvania consumers cope with sticker shock once electric-rate caps expire in the coming years may be worked out by negotiators as part of a state budget deal.
Greg Fajt, a lead budget negotiator for the Democratic governor, says lawmakers are interested in phasing in the higher rates, rather than let them hit all at once.
Rate caps are scheduled to expire for 85 percent of Pennsylvania's electric customers in 2010 and 2011.
It's a looming problem that's drawn the attention of state lawmakers. Fajt says the administration is leaving negotiations over the fine points to the General Assembly.
Speaking with reporters, Fajt said he remains optimistic that a budget deal can be struck before the state's fiscal year ends June 30.
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Major U.S. utilities spending more on electricity delivery, less on power production
WASHINGTON - Over the past decade, major utilities in the United States have been spending more on delivering electricity to customers and less on producing that electricity.
After adjusting for inflation, major utilities spent 2.6 cents per kilowatthour (kWh) on electricity delivery in 2010, using 2020 dollars. In comparison, spending on delivery was 65% higher in 2020 at 4.3 cents/kWh. Conversely, utility spending on power production decreased from 6.8 cents/kWh in 2010 (using 2020 dollars) to 4.6 cents/kWh in 2020.
Utility spending on electricity delivery includes the money spent to build, operate, and maintain the electric wires, poles, towers, and meters that…
