http://www.usatoday.com/money/industries/energy/2008-06-15-power-prices-rising_N.htm

Energy costs are skyrocketing even without a cap-and-trade system in place. Our lack of a national energy policy has led to outdated infrastructure and no "Smart Grid." Fortunately, that is changing thanks to utility companies, who are raising their rates to pay for these problems and offset the rising costs of transportation fuels.

Utilities across the USA are raising power prices up to 29%, mostly to pay for soaring fuel costs, but also to build new plants and refurbish an aging power grid.

The increases come after rising fuel prices already have driven up utility bills nearly 30% in the past five years, the sharpest jump since the 1970s energy crisis. Fuel costs are again the main culprit. In Virginia, Potomac Edison, citing high coal and natural gas prices, plans to raise rates 29% on July 1, pushing an average monthly residential bill from about $70 to $90. AmerenUE, Missouri's largest utility, recently asked for its first rate increase in 20 years, a 12.1% boost, mostly to cover higher fuel costs. Customers of Public Service Co. of Oklahoma were socked with a 25% rise on June 1.

The price of coal, which fires half of U.S. power plants, has doubled since last year, largely because of surging energy use in countries such as China and India. Natural gas prices are up nearly 50% on high U.S. demand. In California, drought has forced Pacific Gas & Electric to replace cheap hydroelectric power with natural gas, helping to prompt it to seek 13% rate increases.

Once we build the smart grid and figure out to lower the costs of transportation fuels, will we see headlines saying, "Utilities Lower Rates"?

USA Today; June 15, 2008

Submitted by B.Shapiro