Save Energy At Home And Get A Higher Bill?
Posted by Sonja Ebron
We’re about to get ripped off again by our electric utility companies. Regulated utilities have sought repeated rate increases from state regulators as the costs of oil and natural gas rose the last few years. Deregulated firms have collectively raised their rates with impunity. With rare exceptions, few have lowered those rates now that prices have declined for both fuels.
The Wall Street Journal reports that consumers are using much less electricity this fall and winter than in past years. Just as we limited our driving when gasoline prices rose, it appears we’ve also lowered our use of electricity as electric rates have climbed. Perhaps the milder weather this winter reduced the need for electricity to heat homes and businesses. Or perhaps the slow economy shuttered businesses and forced people from their homes, reducing the demand on power plants. But some utilities report residential use down as much as 9%, a much greater reduction than could be caused by abnormal weather and economics combined. “Something fundamental is going on,” says Jim Rogers, chief executive of Duke Energy. Perhaps the real reason is that people are finally getting serious about energy efficiency and conservation and simply eliminating wasteful practices in their homes.
Utilities have played at efficiency rebates and incentives for years, in part to delay federal action on climate change, and some still offer free or low-cost energy audits to help households lower their bills. More recently, utilities have sponsored or hosted environmental events, offering discounted compact fluorescent light bulbs to encourage people to invest in energy efficiency. Their muted messages have been overwhelmed by global warming concerns and fears about energy supply. Consumers are now bombarded with energy efficient product choices, everywhere from their local hardware store to new websites hawking smart devices for sustainable living.
What (oh what) are utility companies to do? They can’t simply let their stock values decline just because people want cleaner air and water and more control over their energy consumption. Rate increases are usually justified by rising demand for electricity. We have to build more power plants, they cry; otherwise we can’t keep up with our energy-hungry customers. Duke Energy is out in front on this, urging regulators last year to “decouple” electric rates from consumer demand for electricity. Duke and others now want consumers to pay for how much they save. Arizona, California, Connecticut, Massachusetts, Minnesota, Nevada, Rhode Island and Vermont already have already passed legislation to let utilities recoup their actual investments in energy efficiency, but the Duke plan goes much farther.
Duke’s proposal to the North Carolina Utilities Commission is to invest one percent of its revenue in new energy efficiency programs and to take full credit - literally - for the consumer movement toward lower energy use. “The plan will compensate Duke Energy Carolinas for verified reductions in energy use,”said Duke Energy vice president for energy efficiency, Ted Schultz. Likewise, New Mexico passed legislation early this year that requires regulators to provide retroactive financial incentives to the three largest utilities for energy efficiency programs begun in 2007. The companies are expected to reduce consumption by five percent (of 2005 sales) by 2014 and ten percent by 2020, with lots of loopholes available in case these targets aren’t met.
There is certainly a business case to be made for leveraging the capital and credit of these large firms for efficiency investments that help people use less energy. But that horse has already left the barn — households and businesses are apparently saving energy right now with little assistance from local utilities. No one tracks electric demand like an electric utility. They know what’s happening to their revenue long before the public does. All these companies are doing now is stealing the investments consumers have already made to save energy. That’s a shame if we let them get away with it.
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5 Responses to “Save Energy At Home And Get A Higher Bill?”
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That is true and a concerning outlook. There is something brewing though that will send a clear message to power companies. Many people are catching on to how easy and cost effective it is to generate their own electricity.
The average person can now easily convert to wind and/or solar power and immediatly reduce their power bill by 80%. Theres not much at all to hook up, and what they don’t use can be sold to power companies and eventually not have to use them at all. Click Here!
Stephen, thanks for the comment, but we’ve got a long way to go before the average person can cost-effectively construct their own solar or wind power system. If we were there, the power companies would be selling the materials and installation services themselves. Even those of us who can properly size a system and specify the right balance-of-system components will spend far more over the lifetime of the system than we spend on dirty power. There are good reasons to get off the grid, but saving money is not currently one of them. Your link claims you can find the components at your local hardware store, that the hookup takes only minimal skill, and that you can build a 100-watt system for less than $200. I’m certain none of that is true.
Thanks for reading Sonja and for your politeness as weel. I felt I would get some response on my comment I’m glad it was you.
A little about me. I’m ex-miltary(8years), I worked for General Dynamics for 16 yrs, and at my ripe age I just graduated from technical college majoring in engineering.
I can tell you there is so much technology that can be used to better society thats just burning to hit the market.
One example is something I was made aware of in 2005 DTV. We know that in Feb 2009 analog will need help in receiving a signal to home of anyone who does not have satellite, cable, or tv software download capability. That was something that had been brewing for years thanks to digital processing of tv circuitry.
Another example is how fast the PC’s we use. Handheld,lap, or desktop advances not in years but every few months not to mention mp3,ipod,iphone, and video games. Thats highttech materials because most do not know much about Boolean,Binary, PLC’s. subnet mask etc…
Ontheotherhand, most people either know someone or can quickly figure out how to connect a hardware store generator to their house. That same technology is based on the same level as solar and wind power. They each generate electricity and basically the same connections.
The only difference is that a generator from a hardware store runs on…you guessed it gasoline, whereas a solar panel or windmill generates from the sun/wind and in addition can store energy.
One other mention here is that yes some power companies do sell alternate sources such as wind or solar, however, they will charge $1000’s for them and even more to install.
Stephen - Congrats on completing your degree. You are right about the energy innovations just waiting for the right commercial incentives. I’m very hopeful the incoming administration in Washington will help get those technologies out of the research labs and into production as soon as possible. It’ll be great to see some clear and progressive thinking on energy and economics.
Thanks again Sonja!! You are so kind and I’m sure you are excellent company for anyone who is privileged enough to know you personally. Have a blessed day and a HAPPY THANKSGIVING!!
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