Utility Rates Skyrocket

Discussion in 'Economy' started by KissMy, Apr 22, 2010.

  1. KissMy
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    KissMy Free Breast Exam

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    Utility Rates Skyrocket - Is this inflation for printing all that money? Are we paying for all those empty homes without service? Is this to meet federally mandated clean water standards?

    Anthem, Arizona to raise water & sewer rates by 91% - The Arizona Republic Apr. 12, 2010
    Houston's Water-sewer rates to climb 30% - HOUSTON CHRONICLE April 21, 2010
    St. Louis / St. Charles, MO Water Rates increase 50% - ST. LOUIS POST-DISPATCH
    03/24/2010
    AmerenUE electric-rate increase 26% in 6 months.

    And the list goes on.
     
    Last edited: Apr 22, 2010
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says it costs a lotta money to keep warm inna winter...
    :eek:
    Electricity Price Surged to All-Time Record for March
    April 16, 2014 -- The average price for a kilowatthour (KWH) of electricity hit a March record of 13.5 cents, according data released yesterday by the Bureau of Labor Statistics. That was up about 5.5 percent from 12.8 cents per KWH in March 2013.
     
  3. Moonglow
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    Moonglow Diamond Member

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    supply and demand sets prices also......just think what we would pay if it was in the futures market...my electric bill this winter was 400 dollars a month for three months...it was higher in 2001, I had one bill that was 500 bucks, but i live where we have a cooperative it is higher than the actual producers cost to the consumer..
     
    Last edited: Apr 16, 2014
  4. OnePercenter
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    Should have purchased those China subsidized solar panels a few years back. TOLD YA SO!
     
  5. OnePercenter
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    OnePercenter Gold Member

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    No such thing as supply and demand. It's fixed.
     
  6. Moonglow
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    Moonglow Diamond Member

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    What is fixed? The supply or the demand??
     
  7. DGS49
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    DGS49 Gold Member

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    Utilities are in a unique position in the economy. Because of the need for extensive infrastructure it is not practicable to have, say four competing natural gas suppliers or water providers or electricity providers. To make it work properly, each of those providers would have to have duplicate infrastructure in place to your house, which would be an undue cost burden on them, and would reek havoc with our neighborhoods.

    State Public Utility Commissions have tried various schemes to create quasi-competition among utility providers, with limited success.

    But basically the deal is as follows: Since it is not possible to have multiple providers, the states and localities hold an initial competition to award the utility rights to a given company. That company then basically has a MONOPOLY to provide that utility in the geographical area that is awarded. Then once that company has the rights, they have to have their rates approved by the PUC, and there are usually time limitations on how soon they can request rate increases in the future. When they request a rate increase they have to convince the PUC that it is justified by unavoidable higher costs, as opposed to inefficiencies, mistakes by utility management, or simply adding profit. The system isn't perfect, but in most cases the utilities are reasonably restrained.

    There are times when it appears the ratepayers are getting screwed. In Western Pennsylvania when all the steel mills shut down, the utilities lost half of their revenues and the remaining ratepayers (i.e., US) had to pay increased rates to support the infrastructure that was in place to feed the steel mills and other industrial customers.

    It is NO SURPRISE WHATSOEVER that water rates in Arizona are going up. Have you noticed that Arizona is a fucking desert? The water table is dropping by the minute because the land cannot sustain the existing population. Therefore the water utility has to take ever-more extraordinary measures to ensure an adequate water supply, even while the citizens are (generally) taking extraordinary measures not to waste water (no watering lawns, high-use businesses recapturing and treating their own gray water, etc).

    Supply and demand generally has nothing to do with utility rates. Or in any other monopoly situation, whether real or contrived by government.
     
  8. KissMy
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    KissMy Free Breast Exam

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  9. elektra
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    elektra Gold Member

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    Welcome to the World of Government dictates, rules, laws, and regulations.

    This is just the beginning. Prices are going be repressive, forever.
     
  10. DriftingSand
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    DriftingSand Cast Iron Member Supporting Member

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    Obama promised that he would help force energy prices to rise and bankrupt coal plants in the process. If anyone believes that fining energy companies for "emissions" won't force a rise in energy prices then that person's an imbecile.

    [ame=http://www.youtube.com/watch?v=Y-aLcbr63ME]OBAMA WILL BANKRUPT THE COAL INDUSTRY Biden: No Coal !!! - YouTube[/ame]
     

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