Paying more now to save later
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At the beginning of 2010, monthly electric rates are going up by an average 34.4 percent for residents and 23.8 to 42.8 percent for small businesses. To offset those increases, PPL is offering a voluntary program for residents to pay ahead, beginning in July, and earn interest from the company. n Under the program, customers would pay an additional $7.50 each month until January. In 2009, that fee doubles to $15 per month. n That money is placed in an interest-bearing account, to which the utility company contributes 6 percent. If customers move out of the area or withdraw from the program, the company will reimburse them with those fees and the earned interest. n With those fees and interest applied as credit toward the higher rates, residents would see average rate increases of 7 percent in 2008 and 2009, 6 percent in 2010 and 2011, and 5 percent in 2012, said Administrative Law Judge David Salapa. |