This is a letter sent to the NBC affiliate in Columbia S. C. doing business as WISTV.
Are electric utilities providing power at
the lowest possible rates?
In the name of planning the electric utility companies regularly apply for and usually get rate increases to “provide for growth.” On the surface this seems like a laudatory objective. Utility companies are allowed to charge today’s customers for what they use today and for money to build out the capacity of the systems for the future. This does not seem to be completely out of bounds either. However, it is becoming a norm that when the economy is doing well utility companies get increases more easily than when it is not but the rates are still going up and up all of the times. Utility companies have over the years constantly forced more and more people to go without electricity or use less in order to survive. If electricity cost were not so expensive it is possible that the utility companies might make more money because they would have more people using electricity just to be comfortable in their homes and fewer people would have to go without. I argue that more people using electricity even at basic levels would reduce the need to increase rates. It is common nowadays to visit relatively well off folk in lavish homes who are only heating parts of their houses because they do not want to pay the high cost of electricity. Conservation is good but being forced to go without or sacrifice your comforts is not a good thing.
In this day of wide spread collection and circulation of economic data it is not difficult to determine the incomes per family in an area or in a demographic. Electricity prices ought to be set to reflect the ability to pay of the area served rather than just based on extracting enough money from rate payers to satisfy the planning goals of the electric utility company. I am not an engineer but I do know that presently the electricity left unused in the system cannot be stored for later use. Why not reduce rates to a point where the rate payers could be using that excess or wasted electricity in the system to live comfortably? Why don’t the utility companies use that surplus production to provide electricity for the customers that they have forced out of the market? They do not need taxpayers to pay them while they have excess capacity that does not materially increase their cost. Utility companies are interconnected nation wide by the grid and it seems reasonable to this non engineer that power could be shifted from low use areas to higher use areas without raising rates in each region just to build separate systems designed to compete for the future. We all know that the concept of a regulatory utility commission is not working to keep rates within the means of the people in areas served by the utility companies. Fixing that system is not possible in reality and we know this as well. Yet, we should not have to reduce our quality of life without at least asking the question; are utility companies providing electricity at the lowest possible rates. A little day light on the facts might help fix the system and lower energy cost.
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