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Surprise Drop in Power Use Delivers Jolt to Utilities
online wsj ^ | 11/21/2008 | REBECCA SMITH

Posted on 11/21/2008 5:51:58 AM PST by shove_it

An unexpected drop in U.S. electricity consumption has utility companies worried that the trend isn't a byproduct of the economic downturn, and could reflect a permanent shift in consumption that will require sweeping change in their industry.

Numbers are trickling in from several large utilities that show shrinking power use by households and businesses in pockets across the country. Utilities have long counted on sales growth of 1% to 2% annually in the U.S., and they created complex operating and expansion plans to meet the needs of a growing population.

"We're in a period where growth is going to be challenged," says Jim Rogers, chief executive of Duke Energy Corp. in Charlotte, N.C.

The data are early and incomplete, but if the trend persists, it could ripple through companies' earnings and compel major changes in the way utilities run their businesses. Utilities are expected to invest $1.5 trillion to $2 trillion by 2030 to modernize their electric systems and meet future needs, according to an industry-funded study by the Brattle Group. However, if electricity demand is flat or even declining, utilities must either make significant adjustments to their investment plans or run the risk of building too much capacity. That could end up burdening customers and shareholders with needless expenses.

To be sure, electricity use fluctuates with the economy and population trends. But what has executives stumped is that recent shifts appear larger than others seen previously, and they can't easily be explained by weather fluctuations. They have also penetrated the most stable group of consumers -- households. [...]

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: conservation; ecoweenies; electricity; electricrates; energy; energypolicy; utilitybills
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1 posted on 11/21/2008 5:51:59 AM PST by shove_it
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To: shove_it

Funny how that old outdated “Supply and Demand” economic paradigm works, no matter how much Socialism you throw at it.


2 posted on 11/21/2008 5:55:13 AM PST by Hardastarboard (America is so "twenty minutes ago")
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To: shove_it

I guess they can “reward” us for conserving energy by raising prices! I hear that is what the democrats want to do with gas - tax it up to $4.00 a gallon....


3 posted on 11/21/2008 5:55:20 AM PST by aberaussie
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To: shove_it

“Hey, demand’s down! That means we need to raise our rates, right? Let’s whine about it to the Public Service Commissioner.”


4 posted on 11/21/2008 5:55:40 AM PST by AngryJawa (SOCIALISM SUCKS)
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To: shove_it
Of course it is a result of the downturn. My own thermostat is 15 degrees lower than last winter's setting.
5 posted on 11/21/2008 5:55:52 AM PST by JasonC
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To: shove_it

Customers are starting to turn off lights and use the ac less. How inconsiderate.


6 posted on 11/21/2008 5:56:08 AM PST by CindyDawg (Lord, please bless America)
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To: shove_it

they should be praising we consumers for cutting back on power consumption in order to save the planet. :)

Thatz what they wanted us to do wasn’t it??


7 posted on 11/21/2008 5:59:06 AM PST by webschooner
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To: CindyDawg

It’s racism against the power companies./s


8 posted on 11/21/2008 5:59:43 AM PST by Dallas59 (Not My President)
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To: shove_it

Wait’ll we start using those high efficiency flourescent bulbs.


9 posted on 11/21/2008 6:00:44 AM PST by sonofagun
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To: shove_it

Baloney. Once we see infiltration of plug-in cars, power consumption will surge. If we don’t continue looking to install new generation facilities, there will be a proliferation of brownouts once again.


10 posted on 11/21/2008 6:00:51 AM PST by Sgt_Schultze
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To: shove_it

I guess those CFL bulbs really do work!

Now to convert the population to plug-in electric hybrid cars (with $40,000 price tags and $1.60 gasoline...)


11 posted on 11/21/2008 6:01:24 AM PST by Yo-Yo
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To: shove_it

We’re keeping our home much colder this winter, we’re driving much less, not going out to eat very much at all & have eliminated unnecessary expenditures. This economy is dealing a bad blow to our business & we’re having to hunker down to get through it. Ever since the first bailout, our business has DIED.


12 posted on 11/21/2008 6:01:58 AM PST by alicewonders
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To: shove_it

Electric Companies all over are advertising to unplug appliances, put a sweater on and use the toxic bulbs, jumping on the Green bandwagon.
Now they’ll have to raise rates to even the playing field.


13 posted on 11/21/2008 6:02:52 AM PST by libertarian27 (Land of the Fee, Home of the Shamed)
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To: shove_it
"Numbers are trickling in from several large utilities that show shrinking power use by households and businesses in pockets across the country."

Reposessed homes and shut down businesses don't need power.
14 posted on 11/21/2008 6:03:41 AM PST by FrankR (Where's Waldo ([W]here [A]re [L]egal [D]ocuments [O]bama? (i.e. birth certificate))
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To: shove_it

Wait until we get electric cars. And the population of the US will grow by 135 million in the next 40 years. Brownouts are the more likely scenario.


15 posted on 11/21/2008 6:04:58 AM PST by kabar
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To: shove_it

Its just another excuse to go for an increase...its not about usage, needs, economizing, or any other rational excuse. “Because we can” is the socialists mantra....


16 posted on 11/21/2008 6:07:31 AM PST by mo
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To: alicewonders

Dittos to all you wrote in Post 12.


17 posted on 11/21/2008 6:07:42 AM PST by randita (2 Chronicles 7:14)
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To: shove_it

They force us to buy expensive lightbulbs, tell us to turn our thermostats down and our industries are laying people off and cutting back on manufacturing.

Gee, less energy use and these people act surprised by it?!

I act surprised like this over something so logical in my field of expertise and I would probably be fired...


18 posted on 11/21/2008 6:08:04 AM PST by Abathar (Proudly posting without reading the article carefully since 2004)
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To: shove_it
Name one other business/industry that openly advertises to use less of their product (under the guise of conservation).

This is all part of the new American, how to increase profits by producing less, energy business model. Have the customers use less, scare them if you have to. Raise the rate on the reduced supply.

19 posted on 11/21/2008 6:08:41 AM PST by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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To: shove_it

If they think it’s bad now wait till everyone gets rid of their CFLs and goes to LED. If I could get LED bulbs for $10 I would do it now.


20 posted on 11/21/2008 6:09:21 AM PST by Varda
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