2006RUS

An artificial rate cap imposed on electric suppliers in PA has allowed electric rates to remain low even when fuel commodity costs have gone up. As in 2008 when natural gas and oil spiked in price PA electricity customers felt no ill effect as did deregulated states like Texas. The argument could be made that the price protection PA received during the energy commodity spike of 2008 is a reason to keep PA regulated. The problem with this argument is that because prices were artificially low they had to be subsidized by tax dollars. So in reality tax payers sill paid for these price spikes as the PA budget was depleted and now like others states is facing a deficit. Free market electric competition allows the private sector to take care of the lowering of electricity prices while the state government can deal with things they were created for such as roadways, police, and fire departments.

Take for instance in 2008, prices spiked in the energy commodities world. Both oil and natural gas prices when way up in price but in Pennsylvania energy consumers kept paying low prices for their electricity. This low price was great but in reality it was because of rate caps and not long term planning that gave everyone a cheap electric rate. In a competitive electric utility market long term hedging and power purchases gives electricity suppliers a competitive edge. Electricity can be sold cheaper than other electric suppliers when power is purchased at a low in the market and hedged to offer fixed rate choices.

As rate caps were taken off of the natural monopoly electric utilities in PA we saw energy prices go up as the rates were no longer subsidized by the government. In reality the government does not have a magic sauce that somehow keeps prices low even when prices are actually high in the energy commodity market. The secret sauce is none other than your own tax dollars at work. Instead of your taxes being used o build new infrastructure like parks and roadways you were basically paying for other peoples electric service. A competitive electric market without caps means it is up to the energy provider and the customer to take on this risk. If the customer chooses a fixed electric rate they are relying on the PA electricity supplier to handle the risk.

Fortunately in PA energy consumers have not yet been told when and how they have to use electricity and what days they can take showers. Dictators tell people these types of things and in a regulated environment that makes sense but PA is now a deregulated electric choice market and people have jumped at the opportunity to use their choice to find options that best fits their situation. There are now over 15 PA electric suppliers offering fixed and variable rate plans at all different terms like the 12 month fixed all the way out to 48 months fixed rate offers. People feel free to choose and have seen their prices come down without the need for government intervention.

A fixed rate offer will always save someone more money in the long run than a variable price simply because most people cannot stick with a variable price when prices take a swing up. Just like when in the stock market people buy high and sell low so is the case with electricity prices. A fixed price is for the risk averse and gives price assurance and an overall lower PA electric rate than those who choose a variable electric rate. Before saying PA deregulation doesn’t work consider that fixed rates offer a better deal to customers than what is offered in a regulated market.

The main reason people want to pay more for electricity in a deregulated market is for other choices not related to price. Some people like the idea of no deposit if that means they must agree to a higher electric rate. In a regulated market deposits are required a lot of time and there are no exceptions. In a deregulated electricity market as in PA choices such as prepaid and no deposit allow for more options although customers do get hit with a higher electric rate.

Not all electricity suppliers in PA are trying to build a good reputation for honesty, and ethically run business practices. A new buzz word is used right along with a variable electric rate offer and it is called “competitive”. In truth the rate looks competitive only because it is a teaser first month rate. These electric companies usually do not hedge their energy and put all the risk of price fluctuations on their customers. Beyond the price risk additional profit margin is added to the electric rate over time causing economic harm to a customer who believed in that attractive term, “competitive”.

When choosing a PA electric supplier be sure to compare fixed rate offers and have knowledge and awareness that variable offers are like teaser prices. Deregulation works in the PA electricity market provided that you go into the electric choice decision making process looking to save on your fixed electric rate and not because you want to avoid a commitment, want no deposit, or are easily persuaded by teaser rate glossy advertisements.

This article goes into detail about Pennsylvania Electric Deregulation and if more information is needed about US deregulated electric markets more energy news can be found here: Electricity Articles

In Illinois energy consumers are getting a little angry about a soon to be passed bill that would allow electricity poles and wires companies to add a $5 surcharge to each and every electric bill in the Ameren and Com-Ed electricity service territories. The surcharge would basically be a loan from their energy customers to allow them to improve their old outdated electric grid.

A government surcharge can’t be avoided but energy consumers can complain and vote those out of office that allow little taxes like these to take place. The argument is that the improvement of the electric grid will lower the cost of electricity so the surcharge should be replenished through adding savings in other ways. This however reminds me of the low flow toilet phenomenon where you buy the toilet to save on water only to have to flush 6 times. Will the surcharge make consumer friendly improvements to the electric grid or cause additional problems?

Retail electricity companies sometimes like to look for ways to deceive the public by whatever means necessary. The surcharge name is commonly misunderstood by a basic energy consumer as something coming from the state as a pass-through charge. A disreputable electric company will add fictitious fees to their customer’s bill and call them things like surcharges to make more money. This type of scam is something to be avoided and a close look at the contract terms of service can help you see if this has been tried on you.

Fuel surcharges are sometimes past through by the state but occasionally will come from an electric provider. You never want to get on a retail electricity plan that has a fuel surcharge because their is upside for the electric company but only downside to their customer. What the electricity company is doing is pushing all risk onto the customer while featuring the fuel surcharge as something good because of the initial low cost to the rate.

In conclusion before choosing an electricity company in Illinois or Texas with a surcharge you might want to find out what kind of surcharge it is. You may discover that the surcharge is not official and may be a sales gimmick. Another option is to speak with a qualified energy consultant that can help decipher all of this for you.

Alexa Wright offers more information related to Illinois Electricity Suppliers on her electricity company site which you can find here: Electricity Suppliers

If you are already running out of ideas as to what to purchase for Christmas, then, you must not worry about it anymore because Amazon has everything that you need to buy. They were able to come-up with a list of 2010 Christmas Gift ideas for you to choose from. These are all great gifts to be given away to your friends and loved ones. Gifts have become part of the annual celebration of this blissful holiday season.

It is very usual to millions of people around the world to spend so much money during the joyous season of the year. The most convenient way of purchasing gift items these days is by doing an online shopping at Amazon’s great commercial website. They sell various products for anyone like the Christmas Gift Ideas For Men. Christmas is all about sharing and giving, therefore, it would be best to buy stuffs from an online shopping site because the services are hassle-free.

The online shopping site of Amazon has all kinds of items that are made available for everyone. They actually even have a list of Christmas Gifts Ideas For Men. Thus, if you are planning to grab something for your special man, then, Amazon can surely help you what to buy. The whole method is very convenient to perform because all you have to do is pick an item that you want to buy and wait at home for it to be delivered. You no longer have to shop at the malls, just stay at home and order what you like to have.

Amazon website is purposely designed to make it more straightforward and much easier for thousands of customers everywhere to get a Christmas gift. If you are thinking of getting a special present for your mom, then, Amazon absolutely has a list of Mom Christmas Gift Ideas. You can order any products for the kids, relatives, or perhaps for your business clients. This is the best option you have when it comes to acquiring special gifts for anybody.

The products that are made available by Amazon comprise The Kindle or Kindle 3, Crock Pot for the moms, The Latest Thriller or Financial Book, The Latest Trends in Hair, Fragrance and Skin Care, Men’s grooming Items and the different clothing designs for both men and women. They have definitely offered any kinds of gift items for anybody. The product that you are going to buy is delivered to you very fast.

Amazon has always been a great place to buy great gift items for Christmas. The people you want to offer gifts will certainly enjoy them. It’s the thought that counts whenever you share your blessings to others. Gifts from Amazon are the ones that somehow spice-up the joyous Christmas celebration of the year. There’s nowhere else you can go to for the exciting gifts than at Amazon online shopping site.

Agonizing over Christmas presents for loved ones? Visit our comprehensive list of Amazon Gift Cards plus the Hot Christmas Toys 2010 for kids.

The chances are that, if you’re shopping in the mall, it’s going to be difficult to find toys made in the USA. Production has been moving more and more towards foreign countries in favor of cheap labor. If you still want to buy products made within this country, in an effort to boost the economy, then there are a few choices available.

Why Buy USA-Made Products?

One of the benefits to buying toys that have been produced in the USA is the fact that you’ll be boosting the economy. The money you spend will support the people who are making the products, and you’ll be keeping your money within the country.

If you’re worried about the quality of the toys you give your children, then buying toys made in the USA can also give you more peace of mind. Many toys nowadays are made from plastics and other materials that contain toxins that will harm your child’s health. Although there is debate as to what the risk really is, buying from the USA helps to ensure that toys are made using high manufacturing standards. And they will often be of a better quality, too!

Where To Buy Toys Made In The USA

The internet has made it easier than ever to find products to buy that were manufactured within the USA. A number of directories now exist and list various categories of product to make things a lot easier.

When you’re shopping with big retailers online, try entering “made in USA” into the search box, and it’s likely you’ll find results that suit what you’re looking for. When shopping in stores, ask around. Some big chain managers may not know what you’re talking about, but individual store owners will know more about where their products come from.

We’re all used to buying toys that have been made in China, but what are the real consequences of this fact? You’ll be indirectly supporting their government and policies that you won’t always agree with. On top of this, you’re also supporting cheap labor.

Next time you’re shopping, try looking for toys made in the USA by checking labels, asking shop owners, and searching through directories online. Although this may not be the most convenient way to shop, you’ll certainly be doing your part to protect your own economy – and find good quality toys in the process!

If you want to see a list of links to sites that sell toys made in the country, check out Toys Made In USA today. If you need more shopping hints, Gifts Made In The USA has some useful and unique suggestions of where you can shop.

Mark Cella on Consumerism in America

What is Consumerism…Taking a Look at How Americans Are Overspent, in Debt and Broke Because They’re Manipulated Through Advertising.

The issue of American consumerism is being brought up more and more these days in light of the current financial crisis that the US is having.

But what is consumerism? Many people aren’t even really sure what consumerism really is. Consumerism can be defined in two ways. In economic terms, consumerism is the practice of people buying goods beyond the things that they need to survive.

For example, someone that buys wine to drink but has water or milk at home is engaging in consumerism because he or she doesn’t need the wine to drink but is buying just because he or she wants it and has the disposable income to purchase it.

Consumerism can also be defined as the practice of equating self worth and societal status with the purchase of goods and services.

What is consumerism in one country might not be the same as what is considered consumerism in another country based on the scarcity or abundance of resources in that particular country.

Mark Cella What is Consumerism?

US culture is almost 100% consumerist because many Americans engage in consumerism either by purchasing things that they don’t need to survive or by finding their own self worth or judging others by what they purchase and how much they consume.

Consumerism is a by product of unchecked capitalism and the current US economic crisis is a good example of what happens when unrestricted capitalism and unchecked consumerism are allowed to flourish in a society.

It’s the job of corporations and businesses to sell their products to consumers by any means necessary, which usually means advertising. Advertising creates the idea that a person’s worth or happiness is determined by what they own and how much they own.

The best example to illustrate this mode of thinking is the sale of lipsticks. Studies have shown that the worse off people are financially the higher the sales of lipsticks are.

Why?
Because women who are feeling bad about their economic situations and feeling their self worth take a dive when they lack the purchasing power to purchase bigger items will spend anywhere from $10 to $30 on a lipstick as a way to cheer themselves up.

Shopping has been promoted as a cure for women’s depression for years because in US culture an individual’s self worth, male or female, is tied to the possessions that they own.

Mark Cella on Consumerism

When that advertising created myth becomes the reality of a culture, the way it has in the US, economic disaster is sure to follow.

No economic system can survive when people purchase items that they can’t afford using credit and not worrying about they are going to pay for those purchases.

In the US consumers aren’t taught to spend their money responsibly, they are actually encouraged to live way beyond their means.

Unfortunately, many people do just that because they don’t know how to handle their money.

Predatory businesses that prey on unwary customers who are desperate to buy a little self-esteem or a little more social status are partly to blame for the economic downfall of the US but the consumers bears some of the responsibility, too.

It’s a consumer’s duty to be aware of his or her own financial situation and to not give in to the persuasive attempts of businesses to convince them to buy more stuff.

It can be tough to resist slick ads created by ad companies that are trained in the art of manipulation and psychological warfare but people need to realize that they are more than just consumers if they are going to find a way to survive the current economic crisis without falling into complete financial disaster as a result.

Visit Mark Cella’s site, www.Mark-Cella.com for more Mark Cella fun and serious matters.