Re:"can you explain why fully unregulated electric power in Pennsylvania has led to a capacity surplus and I think 20 to 30% lower electricity costs."
Well for starters the Pennsylvania system has fixed prices for its energy purchases. Not exactly "fully unregulated" but close enough for a technology genius like you. However, trouble is on the horizon when deregulation kicks in.
usnews.com
Pennsylvania is frequently cited as a state where deregulation has worked relatively well. In 1997, as the state was deregulating utilities, some school districts, towns, counties, and nonprofit groups joined forces to buy electricity. Together, they thought they'd get a good deal. And they did: The 350-member group, called the Pennsylvania Energy Consortium (PENCON), saved itself $12 million in 1999, about 10 percent of previous costs.
No takers[:] But now it's time to negotiate a new deal. And when PENCON went looking last November, only one supplier made an offer; it would cost group members more than they paid under the old monopoly system.
It's not an immediate problem; even if PENCON can't find a better deal by May, state law guarantees consumers the right to go back to their former power companies at former prices through at least 2004. [Is this "fully unregulated" ??] "Hopefully in that time frame, we will find some cheaper energy," says Jeffrey Kimball, PENCON's president and cofounder. New power supplies are expected to come online, including those generated by highly touted windmill farms. Kimball is convinced high prices are temporary, "although there may be this dry spell in the middle." |
