California: Power costs drop, but bills don't

The Orange County Register ^ | July 1, 2002 | The Associated Press

[Ernest_at_the_Beach]

Last year's rate hikes are still in effect, although wholesale prices are lower.

LOS ANGELES -- Blackouts have ended and wholesale power costs have plummeted, but California's energy crisis continues to haunt consumers.

Californians aren't paying any less for electricity even though wholesale power costs one-tenth of what it did when the state Public Utilities Commission approved a 30 percent rate hike 15 months ago.

[Ernest_at_the_Beach]

Calpowercrisis:

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[Dog Gone]

My brother, who lives in a large home in the Sacramento Valley, always exceeds the base load that is allocated for homes in his geographic area. He tells me that most of the electricity he uses is priced at 27.5 cents per kilowatt hour. That's almost 20 cents more per kwh than what I'm paying in Texas.

Unbelievable.

[Postbro1]

This is so typical of California. I am beginning to assess my ability to live here just as that company is. The powers that be will not be satisfied until this state is crawling with poor immigrants (illegal and illegal) and the rest of us are giving 80% of our paychecks to support them. That is if the rest of us can get a job if we can't speak Spanish.

[Bloody Sam Roberts]

But commissioners have since rejected calls for rate reductions, saying the extra cash is needed to keep California's two biggest utilities afloat and help pay $7 billion in debts.

And how, exaclty, are consumers to blame for these debts that they should be saddled with repaying them?

[Ernest_at_the_Beach]

I am guessing this might be formed off of the article you mentioned on another thread!

[BOBTHENAILER]

And how, exaclty, are consumers to blame for these debts that they should be saddled with repaying them?

California's non-deregulation allows wholesale industrial users to pay market rates for power. Ordinary household consumers were fixed at a low rate (vote pandering). When prices sky-rocketed in the winter of 2000, Utilites were then forced to provide power at prices far below the cost of production, resulting in the loss of billions of dollars.

Had Davis had the political guts to free "ALL" power to market prices, there would have been a little short term pain and it would have gone away quickly.

[Vieja]

"And how, exaclty, are consumers to blame for these debts that they should be saddled with repaying them?"

How 'bout the same way consumers are to blame for paying those massive tobacco judgments with higher cigarette costs.......Those consumers who ran up those debts should have known to "just say no" to using ANY power. Shame on them.... [sarcasm]

[stanz]

If you click on the cookbook, he states "After months of waiting - Freepers and fans alike can finally celebrate the tasty legacy of William J. Clinton with the Clinton Legacy Cookbook. The author, Carlo Morelli, has been promoting the book at various events in order to prepare for its debut. Support FreeRepublic.com and your own love for America (and food)by purchasing your copies conveniently online.

I assume any money he collects will be given to FR.

[Ernest_at_the_Beach]

Does that go on this thread?

[Ernest_at_the_Beach]

What's going on here?

John are we getting comments posted on the wrong threads?

[stanz]

All I did was reply to Angelique.

[balrog666]

And how, exaclty, are consumers to blame for these debts that they should be saddled with repaying them?

Well, gee, didn't they use all that power that they didn't pay for?

[Ernest_at_the_Beach]

Hmm! OK!

[Angelique]

I assumed the same, but if you read that message, did he say proceeds will go to FR? That isn't a difficult task. Hello, how did he come up with 20 dollar price tag? I worked on this book for months believing the revenue would go to FR.

[Angelique]

I am sorry for bothering you.

[Vieja]

"And how, exaclty, are consumers to blame for these debts that they should be saddled with repaying them?"

How 'bout the same way consumers are to blame for paying those massive tobacco judgments with higher cigarette costs.......Those consumers who ran up those debts should have known to "just say no" to using ANY power. Shame on them.... [sarcasm]

[Flying Circus]

Consumers benefited from price controls last year rather than paying the real price of electricity. The debts are a direct result of consumers paying below market rates while the companies selling the power were forced to purchase at market rate. Now is the time to pay the piper.

This is the result of politicians in Sacramento meddling rather than letting the market work. If consumers were being billed at market rates last year then they would have reduced electrical use, blackouts would have been less of a problem, prices would not have peaked as high as they did and the debts incurred by the utilities, if any, would be smaller and would be their responsibility.

To me (and I am a consumer of power in CA) it seems only just that we now pay at a higher rate because we incurred that debt. It is leftist hypocrisy to say that we should have the benefits but not the consequences.

[Flying Circus]

Exactly right!!