Contrary to popular misconception Powdery Mildew is not the result of overwatering, or even high humidity. Perhaps this article will be of some help.

http://www.ipm.ucdavis.edu/PMG/PESTNOTES/pn7406.html

Some of us have had good results treating Powdery Mildew with either a 50/50 mix of fat free milk and water or 1 teaspoon of baking soda mixed in 1 quart of water, or 3 tablespoons of baking soda in 1 gallon of water, and spraying those as needed.

kimmq is kimmsr

Interesting! I shouldn't be surprised that the internet is rampant with bad information. Thanks for the help.

I use plastic and use them over and over...without chlorine.

I had significant problems with peat pots and mildew. Since I switched to plastic pots, I've not had any problems. I use the same potting mix, watering regime, and temperature control. My suspicion is that there is something in the peat pots that encourages mildew. I use my plastic pots over and over, and never sterilize or wash out between uses.

Renais

All making me realize I need to switch to plastic. Peat has given me nothing but trouble. Thanks for all the advice guys!

It might depend on your location and which size pellet you use. The only trouble I've had with peat pellets is finding the larger size in bulk locally. The small ones are readily available and not to my liking. Otherwise, the larger peat pellets work well for starting seeds and are very easy. Just peel off the outer fabric as floral_uk suggests before planting.

The OP appears to have peat pots rather than peat pellets. With pellets it's still sensible to remove the netting to stop roots being constrained.

That's correct, I do not use peat pellets. And I just switched to plastic cells and I seem to be having much better luck with them!

Got it. The only advantage that I can see with using peat pots would be in a high intensity/square foot gardening setup. Limiting root/plant growth in tight quarters might work out OK if the soil is rich enough. :)