PP&L the electric utility for Lancaster, Dauphin, York, Lebanon and Cumberland Counties has been moving forward with a plan to help ratepayers avoid the financial stress the rate hikes slated for the end of 2009.

PA businesses and residents face a spike in electric prices when a state-imposed rate cap for PPL customers is lifted at the start of 2010. The latest is that monthly bills for PPL’s average commercial and small-industrial customers are on track to increase between 23 percent and 42 percent.

The plan being advanced by PP&L would allow customers to pay higher bills in 2008-2009 to offset the increased fees in 2010 and 2011. Monies payed over and beyond the billed rate will receive 6% interest from PP&L as an incentive. Only ratepayers enrolled in the plan would receive the benefit.

Clearly, everyone knows that the dramatically higher rates on the horizon are going to hurt consumers, and cause grief for utilities and politicians alike. Frankly, I’m surprised that this is the best that we can come up with…

PP&L won preliminary approval this week to offer the plan, which now goes to the Public Utility Commission for a vote.