Utility rate regulators' hands are tied

WASHINGTON, Aug. 21 (UPI) -- Utility regulators said there is little they can do to stand between utility companies and a recent wave of requests for electric rate hikes.

Utility companies "have to prove what they're saying," when requesting rate hikes, Rob Thormeyer, spokesman for the National Association of Regulatory Utility Commissions told Stateline.org.

On the other hand, "If it's a cost of fuel, it's documented, and they're buying it, they have a right to request for a rate increase," he said.

The Federal Information Association said electric rates could jump 5 percent in 2008 and twice that in 2009, Stateline.org reported.

Behind the rate hikes is an upward march in commodity prices. While prices have fallen recently, the cost of natural gas was 25 percent higher than a year ago recently. Oil prices, also down recently, surged this year, setting a record of more than $147 a barrel on July 11.