Electricity costs rising again

[patric]

Its a new month, and time for another utility increase.

Now that we've begun the five-year rate increase adjustment to pay to rebuild the unreliable overhead service damaged in the ice storm, AEP has again asked for another rate increase, this time to pay for programs related to customers using less electricity.

Paying more for less, what a concept.
http://www.tulsaworld.com/business/article.aspx?subjectID=49&articleID=20080404_5_E1_hThen61021

[custosnox]

quote:Originally posted by patric

Its a new month, and time for another utility increase.

Now that we've begun the five-year rate increase adjustment to pay to rebuild the unreliable overhead service damaged in the ice storm, AEP has again asked for another rate increase, this time to pay for programs related to customers using less electricity.

Paying more for less, what a concept.
http://www.tulsaworld.com/business/article.aspx?subjectID=49&articleID=20080404_5_E1_hThen61021

That sounds about right, use more, pay more, use less pay more.

[Steve]

What really bugs me is that any time there is an adverse event that negatively affects PSO profits, be it a storm, energy conservation program, or whatever, they apply for a rate increase.

Granted, PSO is a regulated monoply utility, but I think they should bear the ups and downs, profits and losses, that any other business in Oklahoma is subject to.  If they want less regulation, then let their stockholders/stock price swallow the cost of the Dec. 2007 ice storm and any other adverse weather event that affects their system.  I think the current process only encourages deferred maintenance on PSO's part, for they can rely on any future rate increases to cover their incompetance and lack of maintenance.

The Oklahoma Corporation Commission needs to "grow a set" and force PSO and other utilities to absorb these weather damage costs like many homeowners do.  But then again, the Corp. Commission is probably staffed by industry insiders, willing to perpetuate the "good old boy" way of doing things in Oklahoma.

[mrhaskellok]

quote: What really bugs me is that any time there is an adverse event that negatively affects PSO profits, be it a storm, energy conservation program, or whatever, they apply for a rate increase.

Steve,

You are exactly right.  Because we subsidize and create a monopoly, we as taxpayers are told, "Well, we can't tell them no, NO ONE would take the risk if we forced them to act on their own two feet.

So silly isn't it?  We force auto makers to make cars safer and get better gas millage with almost no consideration to the impact of the company, but we are supposed to believe that in some way we should be almost thankful for PSO providing us a service at these rates.  

Hogwash, PSO like you said, and any other utility companies, MUST learn to take risks.  This works ALWAYS to the benefit of the consumer.  Why?  Because there is alway someone, somewhere that is willing to work harder or is smarter than PSO, and when PSO makes a dumb move, the consumer benefits because a new, perhaps more innovative, but nevertheless superior company takes over.  

I have heard the lectures about why we had to have "public" utilities, but I believe that technology has far surpassed the thresholds of historical relevance's and we are simply being help hostage to a more archaic way of doing business.