Duquesne Light Wants Rate Increase; Do You

Pennsylvania’s Duquesne Light Company wants to raise rates on electricity customers. They say that they have some good reasons for doing so. However, savvy PA electricity customers know that it’s possible to get good electric service at a lower rate than what the company is already offering, let alone what their higher rates will be if the rate hike is approved!

Why Duquesne Light Company Wants a Rate Increase

This electric company says that it needs to increase base rates for customers for the following reasons:

• 1. The company needs to improve its infrastructure and a rate hike would offset the costs of doing so.


• 2. The company isn’t in compliance with a 2006 federal act regarding pension plans and needs the additional funds to become compliant.


• 3. The company wants to increase low-income assistance programs for customers but needs to offset the cost by charging regular customers some of the difference.


• 4. They haven’t asked for a base rate adjustment in 4 years so it’s about time.

Why This Thinking Is Flawed

Those reasons sound legitimate but they actually may not be. Consider the following:

• Duquesne Light Company customers are already paying more than some of their neighbors for the cost of electricity. Where is this money going if it hasn’t gone towards improving infrastructure and creating compliance with federal regulations established more than four years ago?


• Assisting low-income families with better rates for electricity is a wonderful thing. However, what justifies passing on those rates to people with average incomes? The average person today needs to save money, too!


• Just because a certain amount of time has passed doesn’t mean that a rate hike is necessary. When other people in the area are already paying less for electricity it simply doesn’t make sense to insist upon a rate hike.

Luckily, PA Has Electricity Deregulation

Pennsylvania was one of the first states to deregulate electricity. This means that customers in the state have the right to choose their electricity company from among many competitive companies. You don’t have to accept the higher rates that Duquesne Light Company is asking for even if that rate hike is approved. You can switch to a more affordable electricity company and lower your PA electric bill. Where you choose to spend your money sends a big message to the large utility companies!

Source: http://www.duquesnelight.com/News/NewsReleases/2010/nr100723.pdf