Virginia Looking at Competitive Effects of Rising Electric Rates

Sharply rising electric rates in Maryland and Delaware have Virginians, including state lawmakers, wondering what will happen when capped rates end here in four years.

Like Virginia, its two northern neighbors deregulated their electricity suppliers a few years back; and, like Virginia, they had protected consumers with temporary rate caps on existing power companies. As rate caps have expired in Maryland and Delaware this year, consumers have faced rate increases from 50 percent to more than 100 percent.

In Virginia, a specially created subcommittee of a General Assembly commission that monitors electric deregulation has begun studying the implications of the expiration of capped rates in 2011.

The special panel also will examine how the State Corporation Commission should set up "default" electric service in 2011 for those consumers who don't want to switch to a competitive electricity supplier -- assuming competition develops between now and then.

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