Skip to comments.Electric rates not falling along with fuel costs
Posted on 07/12/2012 3:26:28 PM PDT by Timber Rattler
A plunge in the price of natural gas has made it cheaper for utilities to produce electricity. But the savings aren't translating to lower rates for customers. Instead, U.S. electricity prices are going up.
Electricity prices are forecast to rise slightly this summer. But any increase is noteworthy because natural gas, which is used to produce nearly a third of the country's power, is 43 percent cheaper than a year ago. A long-term downward trend in power prices could be starting to reverse, analysts say.
"It's caused us to scratch our heads," says Tyler Hodge, an analyst at the Energy Department who studies electricity prices.
(Excerpt) Read more at wtop.com ...
But you wouldn't want to embarrass your führer by noticing stuff like that. You'd want to pretend that the power companies were in a conspiracy against your führer to make him/her/it look bad.
My electric company has been seeking approval to raise rates to make up for “losses” due to falling demand. Funny thing is that they have plenty of money to erect windmills.
Somebody needs a refresher course in free market economics.
When you pay more, you pay more taxes. Easy to figure this out.
Publicly-regulated utilities have nothing to do with the free market. Unfortunately.
Renewable power is expensive and requires backup power generation only used during peak loads or when renewables aren’t running. The renewable energy mandates in 29 different states drove up the cost of new power generating capacity, which must be made up for even if hydrocarbon fuel costs go down.
You are absolutely correct re “losses”. However, I have to believe that rates have to be ratcheted up to make up for the subsidies provided to the “green” utility users. I worked for a state utility regulatory agency during the seventies and eighties and the economics were the same then as they are now..........socialogy and English graduates designing economic, engineering and accounting policies to fit a political narrative. Almost every “green” policy promoted by the current Federal and State Energy regulators has been promoted by the libs since the early “70s” and were economic and political failures.
The major difference is there are fewer professional accountants, engineers and economists to check the facts and more Sociology and English Majors ( code for political lawyers) working for the government.
I should add, the money for UNECONOMIC windmills and Solar Power is reimbursed by the Federal Deficit as well as state, local tax breaks as well as other utility. customers.
Although natural gas prices are low, I believe that coal is still the cheapest way to produce electricity and Obama’s war on coal is having results and the ratio of electricity from coal and natural gas are now equal, which means the average price of electricity is going up.
I always know when gas prices are going to fall, because I get lots of calls from small “energy suppliers” who want to lock me in to “stable, predictable-price” contracts.
No one is calling now to lock me into present prices.
Of course not. Government employed/pensioned investors wouldn’t allow it.