Posted on 04/20/2002 11:54:11 AM PDT by Ernest_at_the_Beach
Electric rates will rise by about 20 percent this summer, but because of quirks in the rate structure and decreases in natural gas prices, SDG&E is predicting that most customers will see little no increase on their overall utility bills.
Set to begin May 1, the summertime electric rate hikes will primarily apply to small businesses, though some residential customers will also see increases, according to San Diego Gas & Electric.
The electricity increases were mandated by the California Public Utilities Commission to encourage conservation in the summer when the state's generating capacity is hardest pressed.
But the utilities commission recently increased the amount of electricity most residential consumers can use without incurring higher rates. Raising that ceiling – to 434 kilowatt-hours monthly – means that more than 40 percent of SDG&E customers will see no electric-rate increases this summer.
Consumption beyond the 434 kilowatt-hour limit is subject to rate hikes of at least 14 percent. Typical residential customers use roughly 500 kilowatt-hours a month – meaning that they will pay the higher rates only on about 66 kilowatt-hours.
Most customers now pay about $70 monthly for electricity, or 40 percent more than they did in 1999, prior to the crisis in the state's deregulated power market.
A spokesman for SDG&E said many small businesses will find their summertime electricity increases offset entirely by declines in natural gas prices. The price for natural gas – which is not regulated – is adjusted monthly by SDG&E in accordance with the cost of acquiring the commodity.
News of the electric hikes – even if they are offset – worried Marc Marcotte, owner of coin-operated laundries in the Tierrasanta and Clairemont neighborhoods of San Diego. Marcotte noted that gas costs are higher for laundries than electric costs.
Even if the gas-price declines offset the electricity hikes, Marcotte said utility costs will remain about double what they were some two years ago.
"The electricity crisis is still taking a bite out of the business," he said.
SDG&E offers free energy audits, seminars on energy efficiency, new appliance rebates and payment plans designed to reduce the shock of higher rates. The utility also administers low-income assistance programs for its customers.
Craig Rose: (619) 293-1814;
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Customers pay that plus the amount the state is paying, which is now causing an increase in state taxes.
LOL!
Here in the Houston area during the summer, I use about 434 kwh per week.
I agree, I pay twice that in Florida!
California is also now charging out-of-state oversize load escorts a fee just to enter the state. We were told California needs the money, so they are requiring us to have the registration which costs $300 per year. Violation of registration laws is a midemeanor and conviction could result in fines up to $1000 dollars, six months in jail, or seizure of the vehicle involved.
I guess we're their offset....
California offers no break in the "baseline rates" for rural people who are on water wells.
As a consequence, the predominantly republican rural residents pay through the nose each month for electricity in order to subsidize the predominantly democrat city folks.
Nice scam, Davis!
Those "Houstonians" who live outside the city limits pay a fraction of that amount. For example, my average sewer and water bill combined is about $35 per month, slightly higher in the summer when I'm watering the yard.
If businesses pay more for electricity, they will be told by the Rats and their commy/consumer groups that they are getting a partial free lunch re their electricity. They will get glassy eyed and have mental orgasisms and vote for Davis again. A partial free lunch for their electrical bill is part of their Kali Konstitutional Rights!
Of course thanks to aids dementia, dumbing down from the Kali so called schools and inhaling all the time, none of them are smart enought realize a basic business principle.
When costs to businesses increase, they either pass those costs on to their customers (these brain dead Rat sheeple) or they go out of business.
Of course, the more businesses that close their doors, the less electricity is needed. That one of the factors that has saved Davis is our poor economy and businesses closing do to his lack of leadership.
Last but not least Club Sierra and other enviral groups that hate people living in Kali get very happy when businesses close their doors because this often forces people to leave Kali to look for jobs.
What is different is that you have a Governor who maintains that the state's residents are entitled to The Free Lunch, and anyone who disagrees with that is a greedy gouger, probably from out of state.
Unfortunately, as you so aptly pointed out, businesses are finding that the cost of doing business in California is getting higher all the time. If those businesses have competition from out of state, they will die, because they will be undersold.
That further reduces tax revenue to the state, which will find itself increasingly unable to provide the infrastructure for a rapidly growing population.
California might make some needed changes if Bill Simon defeats Governor Davis this fall. And he just might, because Davis isn't promising The Free Lunch. He's promising abortions.
Now that's a Texas-Sized bill! If I may ask, is this just for a single family residence, or a small acreage.
I think it should, but Davis will try to get past it by attacking Simon over other issues as he is doing already!
If Davis can get his Power Bonds plan activated he can blunt much of the bad financial fallout from last summer!
I have very minimal electrical usage, in a small Garden Cooperative apartment - all Electric. I keep the electric heating turned off in the winter, no A/C but do have Electric hot Water Heater and Range. And I still run over the baseline and am up close to $100.00 a month.
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