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Raise The Price

Written by Rt

powerline.JPGWhen gas prices started rising a few years ago my mother was shocked (I can remember gas for 32 cents/gal - but I was a wee lad). I told her it needed to get to $5/gal so people would start buying efficient cars and alternate fuels would be competative.

So it is with electricity. When the cost gets great enough then people will conserve - other people
will get rich, but the poor people will conserve (you know, those lazy people who work two jobs to gross $12K/yr).

The Connecticut electric utility sure got the message.

Connecticut’s electric utilities have begun phasing in steep rate increases that will hike residential electric bills up to 50 percent by this summer, and commercial bills even higher.

Without enough incentive to build new power transmission lines, the federal government imposed a steep “congestion” surcharge. When a new transmission line from Middletown to Norwalk is completed, the congestion charge will be eliminated, they said.

Did the utilities expect their customers to build the power lines themselves? The utilities didn’t have “enough incentive” because they can just pass the federal charges on to the customers - there’s no financial impact to the company. You don’t think they were going to improve the infrastructure on their dime did you? That would impact their profits.

Speaking of profits and conservation.

Roy suggested conservation should play a part in the solution. “If we can change our habits, we can save tons of energy,” he said.

But conservation has a downside. Roy noted UI received a 7.5 percent rate increase to make up for the profits it lost when its customers took its advice and reduced their consumption of electricity.

Man! Who on the public utility commission do they have in their pocket?

I have advocated a sliding scale where the more electricity you use the more you pay per KWhr. This would allow a very low rate for small users. The electric companies are trying a similar scheme based on the time you use the electricity. That helps even out demand but does nothing for people who use very little. Indeed, the utility companies (all of them) have a billing system where you don’t have to use anything - as long as you are a customer you get charged some amount. A real conservation inducer that is.

Hey, they says, we have to make a profit so we can keep building more plants - we’re not in this for our health you know. Indeed, not in it for my health either. Meanwhile the pols fiddle while Rome burns.

Finch said forums such as this one were important to raise awareness of the issues. “I hope that through forums like this around the country, we’re going to find solutions for our energy problems,” he said.

Comments»

1. On February 15, 2007 Michael wrote:

Your sliding scale idea is right on. Burlington Electric of Vermont has a 2-step scale that’s at least better than nothing. Up to 150kwh you pay a set lower rate (like $.09). Over that you pay the higher rate (closer to $.13).

It’s a nice start but I’d love to see it expanded.

2. On February 15, 2007 Rt wrote:

Our water utility has some sort of sliding scale but I’m in an apartment and never researched the details.

It doesn’t always help. I have heard (anecdotal) reports that some people actually brag about about how much they pay - conspicuous consumption.

Still, works for me - just make sure there is a broad range - let them pay all they want.

3. On February 15, 2007 The Naib wrote:

Where I live we saw an 80% increase two years ago and a further increase last year…




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