Should You Lock In Your Winter Oil Prices?

The United Illuminating Co(UI)is a electricity company based in New Haven Ct which serves the southern Connecticut market. UI no longer has generating capacity and no longer generates electricity. It has found it simpler to purchase the power from other generating companies and supply it to their customers via there delivery network,their sub stations,their poles,their wires. They also bill the user and collect the money, pay the generating costs,and keep the change, thank you very much.UI charges have been increasing far more rapidly then any other energy costs for the last 4 or 5 years.They are require by law,because they are a quasi monopoly,to justify their cost increase request and gain approval from the Public Utility Control Authority.It would appear that this is only a formality because they are never denied a rate increase. Just this past year they were granted a whopping 40 % rate increase in spite of the fact that they already had the highest cost or very near the highest cost in the country at .24 PKW.When customers advocacy groups complained to the PUCA that many people on fix incomes would not be able to afford these staggering costs and predicted that many senior citizens and those on fixed income would not be able to light their homes or run appliances UI had the answer. Conservation ! People would have to learn how to use less power. UI started a huge campaign to help educate their customers in ways to conserve electricity. They mailed magazines that encouraged people to raise the temperature on AC units,turn off lights when they left the room,purchase Service Star appliances which use less power and numerous other ways to save electricity. UI even provided a service whereby you could purchase energy saving devices directly from them They sold lamps,fans,even CFL light bulbs that use about 75% less power than a standard incandescent light bulb at cost price.All this went very well and people in Connecticut made a real effort to conserve electricity. And we succeeded far beyond anyone's wildest dream. Including UI evidently. UI has now come back to the PUCA for an other rate increase based on the need for more revenue because......everyone might want to sit down for this,their profits are down because PEOPLE ARE USING LESS ELECTRICITY !If this request is granted by the PUCA I can not even think what might happen in this state. There has to be an appeal to a higher authority somewhere. The average family of four is now paying over $200 a month,in the non cooling months for the luxury of a couple of lights a TV and a refrigerator.Is their anybody out there that has an answer ?

Geo. of CT 12:33AM October 26, 2008