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George George is offline
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Default How much are you really paying for electricity?

On 3/15/2012 8:56 AM, Edge wrote:
The federal, state, and local governments are always looking for ways
to get more of your money. Deregulation of the electric utilities was
justified to promote competition and thereby lower your electric
bills. This resulted in separate supply and delivery charges. The
delivery charge is relatively fixed even if you use no kWh, like a
vacation home.



Nothing changed on our electric and NG bills regarding a base charge.
Both bills always had a base use it or not charge. The only difference
is previously the consumption was a single rate. After deregulation the
consumption became separate line items.



My village supplies water to my house and recently decided to raise
the water rates. Deregulation didn't require them to, but I guess they
liked the idea of having a fixed fee as a steady source of revenue. So
they changed the billing method to include a fixed charge - even if
you use no water. To make it better, they shorten the billing cycle
from three months to two months. I guess this allows them to collect
more of these fixed charges in a year.

I look forward to others adopting this idea. Maybe the next time I go
to the gas station, they will not only charge me for the gas, but a
parking fee for using their land while I fill up.