We let supply-and-demand do what it does and an energy company finds a way to stick it to the people anyway.
As NV Energy prepares to raise rates to offset the savings consumers have earned as they cut back on their consumption of electricity, customers are furious they will have to pay more.
NV Energy said the increase is to recoup lost revenue from its customers using less energy.
I’d say this would be a good time to call a politician but then again, they (and their regulations) pretty much caused this energy mess in the first place.
h/t Jeff B
Only one supplier and plenty of demand. There is no such thing as "Free Market Economics" in a government imposed monopoly.
Most electric utilities have two basic charges on our bills, fuel and capital investment. We get charged for the average cost of the fuel used, whether it is nuclear, coal, oil and nat gas. We also get charged for the cost of the equipment used to generate and distribute the power. If we all invest in energy saving equipment in our homes and businesses — everything from light bulbs to a/c equipment — then we will all end up using fewer Kws and the rate for the capital investment will go up. As long as we invest wisely on energy saving equipment ($15 LED light bulbs are not wise) we will still reduce our cost of power over the life of our investment.
But the dirty little fact that the power companies don't like to talk about is that many of them get obscene returns on investment in so-called green energy equipment. Where they might be entitled to a 10% return for regular equipment they may get 20% for a feel-good solar project that does nothing to lower our costs or reduce CO2 emissions (which is a different canard)
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Not to mention that some people have voluntarily subjected themselves to that premium so that X% of their power is generated by supposed green sources. Like my electricity and my neighbor's electricity are allocated from different sources, and I only get the windmill power while they get coal….. whatever. That was a scam for the greenie-rubes from the very start.
This is the exact same scenario as cities like NYC saying they have to raise tobacco taxes because fewer folks are smoking. Well, DUH! You make them have to leave town just to smoke; I suppose more folks will just quit, thus drying up the tax base.
Unintended consequence #192875483909094
In the Pacific Northwest when too much power is generated from clean hydro power, the power company shuts off clean wind power. http://www.oregonlive.com/business/index.ssf/2011…
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"Lost revenue"? Like they have a right to "revenue" they didn't earn? Does that mean I have a right to "lost earnings" I would have made when I was unemployed (for work I didn't do)?
Sheesh!
Richard White
Austin, Texas
Wait! Soaring prices has caused decreased uage and spending, lowering tax receipts. The answer? Well it's to "raise taxes" of course!