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APPA, Consumer Advocates Want Investigation of Utility Rates By SGN Staff Nov 3, 2009 - 3:35:11 PM
The American Public Power Association (APPA), the National Consumer Law Center (NCLC) and other consumer, business and public interest groups want Congress and the Federal Energy Regulatory Commission (FERC) to investigate high electric utility rates that are creating hardships for consumers.
The groups said in a statement that high electric rates are forcing an increasing number of low-income utility customers to choose between paying for electricity, medicine and health care. The statement contends that while there are a number of reasons for high electric rates, a major factor is deregulated electricity markets.
FERC is the federal agency responsible for regulating wholesale power markets and is required to ensure fair and reasonable rates for consumers.
"At a time when consumers are facing extreme hardships from rising electricity costs and growing numbers face shut-offs, FERC must assure electric rates are just and reasonable," said Mark Crisson, APPA president. APPA represents a large number of the country's not-for-profit, community- and state-owned electric utilities, and is a very vocal participant in legislative issues affecting consumers and its membership.
The groups cited a recent National Energy Assistance Directors Association survey that showed the percentage of people who gave up food to pay utility bills rose from 22% to 32% since 2003, and that the percentage of those consumers who put off medical or dental care or prescriptions increased by 10% and 26%.
Another recent survey, conducted by the National Association of Regulatory Utility Commissioners (NARUC) and covering 42 million consumers across the country, found that one in five had past due utility bills. Information gathered by the NCLC showed that in Pennsylvania utility service terminations had skyrocketed 73% from 2004 to 2008.
"It is time for lawmakers to erase Enron's legacy and ensure that FERC enforces that all electric rates be just and reasonable," commented Tyson Slocum, director of Public Citizen's Energy Program.
The statement further alleged that FERC has been asked to investigate rate disparities and increasing power costs several times, but has "taken little action."
APPA news release on FERC call for action
FERC snapshot on SGN
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