Electric Rates- Consumers Must Wade Through the Hype and Speak Up

Writing about energy issues isn’t easy. There are a host of dueling experts that love to aggressively champion their ideas. Some even have secret motives tied to parts of the energy industry. Are these objective writers? It’s hard to say frankly. I once had a person reading my material wonder aloud “which side are you on”? That really is the whole point of my writing. I don’t want to be on a “side” unless it is the side of getting the most accurate and honest information out to the most number of people.

As general consumers I believe we still have a rather naive view of electric energy and electric energy issues. Many people still hold the idea that there are these robber baron capitalists that are cranking out copious amount of “dirty” electricity trying to make the most money for the least investment possible. Of course, this is the American way some would argue.”What’s wrong with that? ”, some might say; Nothing, actually. That may well be the goal of most utility companies and their investors. Yet each state has its own utility commission that reviews utility rate increases and keeps a lid on potential abuses from the private sector. Municipal Utilities have tax payers that theoretically are keeping an eye on things and can vote the scoundrels out if rates climb beyond reasonable expense recovery and, member owned public power districts and member owned rural electric cooperatives also have the “membership vote” regulation in play.

So, if these regulating functions are doing their jobs no one should be paying more than absolutely necessary for electricity and no utility company should be getting windfall profits from the sale of electricity. And, I think that this has largely been the case with the California mess and Enron being the main exceptions to the rule. Fingers pointing in so many directions on those debacles that everyone got a little of the blame there.

In fact with those exceptions, regulators have been doing their jobs so well that in many states prices per kilowatt hour had actually gone down in the 90’s as a result of deals made between regulators and utilities over electric utility de-regulation. Unfortunately increasing fuel costs for all utilities have cancelled out the anticipated price reductions and left many companies in the red begging for rate increases in recent years. Our memories are short when it comes to electricity prices, so the feelings consumers have today are strictly based on recent and nation-wide rate increases and any residual positive perception from the rate decreases of the 90’s has long evaporated in the angry and heated response over the most recent bill.

So, what’s a consumer to do? The main thing a consumer can do is get familiar with their electric bill. How much are you paying per kilowatt hour? What is your monthly kWh use? How much does your monthly use fluctuate with the seasons? What appliances do you have that contribute the most to your electric bill? These questions all go to the heart of the concept – “if it’s not being measured, it’s not being managed”, and if you aren’t trying to manage your electric bill, then you deserve whatever bill you get. And, whatever bill you get is your fault, not your utility’s.

The next best thing you can do is let your elected representative know that you are tired of them spending so much time worrying about what’s going on in public bathrooms and private bedrooms and get back to the job we elected them to do, which is to research, propose and adopt legislation that encourages us all to take a long range view of energy issues.