Simulated impact of an industrial electrical rate reduction on the pittsburgh region

The City of Pittsburgh and Allegheny County have electrical rates which are approximately 20-23 percent above the national average and are among the highest in the U.S. The following report examines the potential impact on the Pittsburgh Region of an industrial electrical rate reduction of 15 percent in Allegheny County. Simulations show that the reduction will slow the rate of decline in manufacturing employment and cause modest increases in employment growth in other sectors of the local economy. However, the rate reduction will have almost no impact on real disposable income per capita in the Region and will also have no recession dampening effect on the Region when the nation experiences a 10 percent, two-year decline in the demand for all durable goods. All simulations are run using the 1994 Pittsburgh REMI Model.