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Analysis | With new charge, saving electricity could end up costing Missourians

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So much for saving energy saving money!

Though it might seem illogical, the new energy efficiency charge has support from utilities, most lawmakers, the governor, environmentalists and even the state's official utility consumer advocate. The charge covers the cost of utilities' efforts to promote energy efficiency and cut power use.

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2.6
{"commentId":8055755,"authorDomain":"wingod"}

Happy days!

{"commentId":8055755,"threadId":"620512","contentId":"3001929","authorDomain":"wingod"}
  • 1 vote
Reply#1 - Mon Jul 6, 2009 2:20 PM EDT
{"commentId":8056404,"authorDomain":"kylen"}

If it's a cost savings for the utility to not have to buy or build new capacity then the charge is superfluous. If it's not a savings and a charge is needed then there goes one of their main selling points. Can't have it both ways it's contradictory.

It has always seemed odd to me that utilities were in the business of convincing their customers to buy less from them. Reeks of the tobacco settlement craziness. Lets leave the utilities themselves alone and do conservation campaigns independently.

{"commentId":8056404,"threadId":"620512","contentId":"3001929","authorDomain":"kylen"}
  • 1 vote
Reply#2 - Mon Jul 6, 2009 2:46 PM EDT
{"commentId":8058440,"authorDomain":"pdeuth"}

Electric utilities will not build more generating stations. That would cost money and increase supply, bringing prices down. They see that as a lose-lose for them, as opposed to the win-win it would be for the public and the region. Our Government is in bed with the electric utilities yet.

Here in Connecticut, my electric bill doubled. Two rate increases were put through under a Republican Governor - two different Republican Govenors, the second finishing the term of the first when he went to jail for corruption. Our Attorney General, a Democrat, did what he could to stop the increases, but his options are few in this area. Another increase was asked for this year, to make up for the money they're not making due to conservation due to high prices! I'm not kidding. Well, that's not entirely true: part of the new increase would have gone to bonuses and salary boosts for the top executives. Our Attorney General mostly put the kabosh on that one.

Paying twice as much for the same thing gets me nothing. I derive no benefit from paying twice as much for my electricity. I'm one of those conserving power, to be sure: I've learned new usage habits, a small benefit, a dubious one at that. Maybe I should get an electric razor, the expensive electricity might make me more handsome - or handsome, anyhow. I'm sure that I'm getting smarted reading under electricity that costs twice as much. How could that not be so, it wouldn't be fair?

Well, droll gallows humor aside, we're being gouged for the enrichment of the manager and stockholders. Those same people feel entitled to their free income, and have sought to further increase our pain to compensate for the consequences of their own actions. The bad guys in this are the electric utility company managers and the Republicans in Government. We, the people, are the captive victims. Were it not for an honest Attorney General, a Democrat, we would be victimized further. Thanks, Mr. Blumenthal, but please don't run for another office, we need you where you are.

{"commentId":8058440,"threadId":"620512","contentId":"3001929","authorDomain":"pdeuth"}
    Reply#3 - Mon Jul 6, 2009 4:15 PM EDT
    {"commentId":8058755,"authorDomain":"wingod"}

    Since the vast majority of the power generated in your state is from fossil fuels, it stands to reason that your rates have doubled as the price of the oil and coal and natural gas have climbed.

    Just think how much benefit you will derive when cap and trade is in place!

    {"commentId":8058755,"threadId":"620512","contentId":"3001929","authorDomain":"wingod"}
    • 1 vote
    #3.1 - Mon Jul 6, 2009 4:29 PM EDT
    {"commentId":8058834,"authorDomain":"kylen"}

    In most of the country electric utilities are essentially public corporations - public meaning government run. The old logic was transmission lines are a public good hence generation is a de facto public good - not exactly true. Texas took the interesting step of partially divorcing the public good from the private good and has a publicly run transmission line utility that sells services to any retailer/generator at a flat rate. Then we consumers can buy electricity from any number of retailers which in turn buy capacity from generators. Leading us to having all renewable options, etc, etc lots of choices in electricity.

    Most utilities operate much like a non profit or more exactly much like a government agency. They have an allotted budget and it's use it or lose it. Their prices are fixed by law, their supply is fixed by law, pretty much everything is fixed by law so it's just ride it out. But to be fair anybody can get in on that action, nearly all utilities are publicly traded corporations so if you think they get nice profits feel free to buy some shares and reel in the money. I'd warn you though their margins frankly are terrible but it's traditionally a 'safe' investment if somewhat poor return.

    The situation many utilities got into in the last 20 years is laws preventing them from increasing supply combined with laws preventing them from raising prices. So demand grows, supply is flat and prices are fixed...the end result of that is insolvency. The solution, build new supply, raise prices (to lower demand), or do these conservation programs to lower demand. It sounds as if your Republican governors might be why you didn't suffer California's power debacle with rolling brownouts. But we could always just regulate other states must give over their excess generation at regulated under market prices to make up for it right (think Utah ala CA 5/6 years ago)? haha

    {"commentId":8058834,"threadId":"620512","contentId":"3001929","authorDomain":"kylen"}
    • 1 vote
    #3.2 - Mon Jul 6, 2009 4:33 PM EDT
    Reply
    {"commentId":8066740,"authorDomain":"pdeuth"}

    Northeast Utilities is a publicly traded corporation. CT Light and Power is part of that. It was more closely watched in the past, but recently their management has taken a stronger interest in themselves than the public good. We are pretty down on them, but they frankly don't care; it's a monopoly and they have us by the short hairs. With "friends in high places" the management has gotten particularly insular and selfish. They ought to behave like a public-minded utility, if their monopoly is to be protected, don't you think? We're being gouged because they simply can gouge us.

    The largest price increase came before the gouging at the gas pumps, by the way. That was over 4 years ago. They said they needed the money for improvements to the system; those improvements never came.

    {"commentId":8066740,"threadId":"620512","contentId":"3001929","authorDomain":"pdeuth"}
      Reply#4 - Mon Jul 6, 2009 10:22 PM EDT
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