White Lightning Axiom: Redux

I've heard from at least two sources in the last few hours that PSEG intends on raising rates by 19.4% if the PUC will allow them to. This being a major slug in the gut for the consumer, is in addition to a 4% increase at the beginning of September. They'll be coming back to this well again, that I'm sure of. The only thing I'm curious about is WHY the prices are going up. The official line was that this is a direct result from the Katrina/Rita situation. Most of the well-heads in the Gulf survived intact as well as refineries being spared any major damage. Virtually all of our natural gas is domestic (LPG is just too dangerous to ship overseas). Is it the cost of Oil? I can see no other direct link so it must be the oil fired power plants ... we shall see if they are just spreading the pain to make it seem less. I'm just not sure what is driving the cost up here ... I'm going to point my fingers at the Trilateral Commission and the Speculators. in any event, this will surely complicate the merger that Exelon-PSEG just went through with promises of lower rates:

Pennsylvania Governor Edward G. Rendell today announced that customers in the PECO Energy service area in southeastern Pennsylvania will benefit from $220 million in rate relief as a result of the commonwealth's intervention after Exelon Corp., the parent of PECO, and Public Service Enterprise Group Inc. (PSEG) announced plans to merge last December. The merger also will guard against soaring electricity prices and protect utility jobs that otherwise might have been lost.
<...>
The settlement will provide approximately $220 million in rate relief to PECO's customers through direct rate cuts and a rate cap extension. Customers in the PECO service territory will receive $120 million in total rate cuts over four years, beginning one month after the merger is finalized. PECO also will cap transmission and distribution rates through the end of 2010.

Best laid plans of men and mice.


UPDATE: It's not what I thought it was, it's actually PGW! you know, the bankrupt, fraud riddled Philly utility that the city so desperately wants to sell off.