Tossing the Cap: Electrical Rate Changes in Pennsylvania Starting in 2010
Rose M. Baker and David Passmore presented Tossing the Cap: Electrical Rate Changes in Pennsylvania Starting in 2010 at the Annual Users Conference of Regional Economic Models, "Regional Economies: the Building Block of the Global Community,” in La Jolla, California, on 22 October 2007.
The presentation benchmarked the impact of 1% changes in Pennsylvania industrial, commercial, and residential electricity prices, relative to entire U.S. economy, on the Pennsylvania economy. The information presented is a preliminary view of a report, schedule for release in November 2007, by the Penn State Workforce Education and Development Initiative that examines the effects of removing caps in 2010 on electrical price rates that have existed for approximately ten years in Pennsylvania. In brief, a 1% change in industrial, commercial, and residential rates in Pennsylvania relative to the U.S. is worth the following macroeconomic changes in the Pennsylvania economy in 2015:
- Total output (2000$) = –$235.6 mill
- Gross state product (2000$) = –$130.1mill, most as a result of reduction in PCE
- Population = –2,593 people
- Private nonfarm employment = –1,449 workers (reduction in PCE accounts for one-half; two-thirds from manufacturing sector)
- Real disposable personal income = -$5.26 mill