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The disincentive to living greener
Topic Started: Dec 19 2008, 09:42 AM (158 Views)
Dandandat
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Time to put something here
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Long Island Homeowners Face Utility Bill Rate Hike Reporting
Jennifer McLogan NEW YORK (CBS) ¯
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Long Island utility customers could soon see a nearly five percent rate hike on their bill.

With their LIPA bill in mind, the Ducharm family of Salisbury is paying to re-insulate their home this Thanksgiving: making walls thicker and installing a propane fireplace, all efforts to cut energy consumption.

"[It's] kind of ridiculous. We do our best to save energy, make the kids turn off the lights when they leave the room," Christa Ducharm said. "And now we will be charged a little extra? Kind of crazy."

As crazy and unfair as they think of the prospect, the Long Island Power Authority says that lower customer usage has cut revenue for the utility, and that is one of the factors behind a proposed 4.8 percent bill hike next year – translating into an average $7.50 increase.

"We're not too happy," Dean Ducharm said. "We have to keep our fingers crossed we can afford all these improvements and pay for LIPA."

Ratepayers are left wondering why, despite a record drop in fuel costs, their LIPA bills are going up.

"We can't really lower what we never raised," LIPA CFO Elizabeth McCarthy said. "And when we look forward to 2009, we see that our costs are going to be higher in fuel and purchased power by about $200 million."

McCarthy describes a perfect storm that includes lower usage, resulting in lower revenue. Increasing contract costs have hit the utility company, as have fees for renewable energy and clean air. New plants, taxes, and nuclear fuel costs have also hit LIPA hard.

But try explaining that to Temple Shalom's bookkeeper in Westbury. Everyone there's conserving energy to lower bills and save money--to no avail.

"I'm not happy about it," Susan Manor said. "The synagogue has had to eliminate their Hanukkah party for children, which they've had every year for 54 years."

LIPA is encouraging families to cutback. Plasma TVs are huge drains, and LIPA suggests that homeowners unplug power strips and chargers when they're not being used. Another tip is to invest in solar and wind energy, which,in the long run, will lower bills.

http://wcbstv.com/topstories/long.island.utilities.2.874829.html


I always tell my wife and kids (mostly the wife) to turn off the lights when their not in the room or don't need them; in the now vain attempt to save money and perhaps conserve energy. Looks like my wife was the one who was right after all. If its going to cost me more to use less; I might as use more sorry to the Environment In advance.


Quote:
 
LIPA is encouraging families to cutback.
Of course they are; so they can turn around and charge more while producing less.


Quote:
 
LIPA suggests that homeowners unplug power strips and chargers when they're not being used. Another tip is to invest in solar and wind energy, which,in the long run, will lower bills.
Until they raise them again for lower consumption reasons.
Edited by Dandandat, Dec 19 2008, 09:45 AM.
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Minuet
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Fleet Admiral Assistant wRench, Chief Supper Officer
Sorry to hear you are getting stiffed. That's what happens when a utility is private and has to show a profit.

I just heard this morning that gas rates here are going down. It should average around $160 a year per household. I'm really glad I stuck with the utility and didn't switch to a private reseller.
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Dandandat
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Time to put something here
Minuet
Dec 19 2008, 03:12 PM
Sorry to hear you are getting stiffed. That's what happens when a utility is private and has to show a profit.

I just heard this morning that gas rates here are going down. It should average around $160 a year per household. I'm really glad I stuck with the utility and didn't switch to a private reseller.
There's no indication that this is profit driven. Even a public utility most operate with out going into the red. If revenue drops to much to be able to fund maintenance, labor and the like the public utility must also raise its rates.

In this particular case; there is no indication that share holders are demanding a higher profit. It seems that these rate increases are cost driven.
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ds9074
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Admiral
With regards to this story, is the charge a fixed amount or based on the power consumed? Also if this is a private company do they have a monopoly or can you change providers?

I would expect utility prices to have risen during the past year due to increased generation costs (though maybe now coming down in the next few months).

I wouldnt have thought though there would be a strong case for increased prices due to lower demand. Costs should fall due to that lower demand and you would think that the overwealmingly largest cost for an energy provider would be the fuel it either generates or buys from other generators.

In the UK you usually get a situation where wholesale electricity prices fall as demand falls since there is more supply than demand and vice-versa (assuming the cost of fuel for generation stays stable).

The electricity and domestic gas market is open to competition here so different firms own the power generating facilities which then sell to the grid (individuals can also sell to the grid).

Various power companies then compete to buy the power from the grid and sell it to consumers at variable prices.

The national grid is responsible for the physical infrastructure of distribution of the power and operates with a monopoly in that regard, charging the power companies for this service. These charges are regulated by the government.

So it is possible to shop around for the cheapest provider and there can be reasonable variations in price.
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Dandandat
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Time to put something here
ds9074
Dec 23 2008, 06:32 PM

So it is possible to shop around for the cheapest provider and there can be reasonable variations in price.
No; unfortunetly due to the gegraphic make up of where I live, an island, it is not practical to have a competitor in the market. there isn't enough land for more generating plants and their isn't even enough customers to sustan two companies. To work against the monopaly effect our provider is supose to be hevaly regulated and monitored by our county goverments.

To be fair to the company; they claim they didnt rase rates as they should have in this past year when engry prices spiked; as compared to naghboring areas. so now when prices have fallen they can't give bake what they didnt take in the first place. And the fact that they didnt take in the first place according to them means they are hurting now. I have not verified their claims.

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Admiralbill_gomec
UberAdmiral
Texas has deregulated electricity distribution.

Check out this web site:

http://www.powertochoose.org
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Dandandat
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Time to put something here
Admiralbill_gomec
Dec 24 2008, 01:24 PM
Unfortunately there is nothing to chose from in electricity on Long Island; if you want power you have to get it from LIPA.

Gas and Oil is a different story; we only have one gas company too, but they have to compete with oil and we have many oil companies around.
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