Posted on 08/26/2023 7:57:06 AM PDT by 4Runner
It’s not profit, it is the implied cost of paying for the fuel and then billing and waiting for all those customers to reimburse. Maybe also storage charges.
Uppercase words are code for sarcasm. ;)
“Carrying charges, my boy, carrying charges”
Then move.
Nope.
It’s legally allowed to only charge what’s needed, plus a fixed profit margin.
You are paying what is needed.
We’re having a very long hot spell in my part of Florida. My bills were actually lower than expected for the past few months but have increased because of the a/c working overtime this month.
I missed it. Thank you!
LOL, can’t speak for DeSantis on this one, but I do know how Texas does it:
1. You draw your power off the Texas Grid.
2. You pay a power company money to replace that power on to the grid.
3. You also pay to have that power delivered to your home.
The first factor (#2) varies by contract type (fixed rate, variable rate, contract duration, renewable content, advertising budget, etc.).
The second factor (#3) varies by your local utility, the guys who string wires and repair hurricane damage. This is still a fixed rate/monopoly system, which I strongly suspect is state regulated.
So you get your combined bill from the supplier (#2), which also includes taxes.
It’s a good system, so far. What’s really nice is that you can lock-in your rates for years (5 years, last time I checked).
For you guys in Texas, this the ONLY site you want to use, as it is the Official Texas Site:
https://www.powertochoose.org/en-us
There are lots of FAKE SITES with similar names (like “Choose Texas Power”) which likely work, but are incomplete and are designed to direct you to certain (more expensive) suppliers...so ignore them.
FPL’s newest scam is the Solar Subscription. This is where you don’t put solar on your house, but instead “join” into a solar farm as your support for solar energy. What crap. Florida lives or dies on cheap electricity and low gas prices. Land booms, like the one going on now eventually bust. When we had nuclear plants and non renewable energy plants, we had surplus power, and would sell it during other states peak demands to keep Florida electricity cheap. not anymore. All hail the Department of No Energy, the solar farms that get rained on regularly, ( oh rain comes from clouds, Florida is evidently not a desert), and if we could harness the wind from political rhetoric, Energy would be plentiful.
Florida imports all of its natural gas. They import all of their fuel oil,and gasoline. They import all of their coal. They have shutdown their nuke, half a dozen coal fired power sources, and even canceled a major nuclear energy project.
The Charlie Crist and Ron DeSantis Republicans are fine with that. So is President Trump apparently. He never did anything about all the Obama rules that caused this. You had one job Donald. Kill the CO2 endangerment Finding...but no...you’d rather farmers then our food in to fuel. Stupid.
You’re welcome. I should’ve mentioned that FREE is sarcasm to the nth degree.
What is Governor Meatball doing about it?
No sh*t Sherlock! That is what public utilities do. They are granted a monopoly on providing a public service at a fixed rate of return in exchange for their public service obligation. “Public service obligation” means they can’t decide one day to cut off your power because they don’t like doing business in your area, or had too much storm damage, or have too many people behind on their bills in your neighborhood. Any other type of business is free to do that.
“Fixed rate of return” means when their costs go up, your bills go up, so they can cover their permitted costs plus the regulatorily approved rate of return (usually low, like 3% to 5%). That is why utilities are safe haven stocks in volatile markets.
If you don’t like their rates, in some partially deregulated markets like Texas, you can change electricity provider. But ultimately the power and the infrastructure is built by and paid for by the public utility.
Spent 35 years in the electric utility business. Did dozens of rare cases before various regulatory bodies. Utilities only earn a profit on their capital investments. We call it; Plant In Service. All other expenses such as admin costs, operations and maintenance of distribution, transmission systems and power production facilities, which includes the cost of fuel are direct pass-throughs to the customer.
>> Then they say they are passing the fuel costs on to the consumer without making a profit on them. Only in Florida could a statement like that to consumers of the product you manufacture not be construed as patronizing, condescending, and blatantly dishonest. Why would you need to make a profit on your fuel expenses when the consumer is paying the entire fuel expense for you? <<
You sound like an idiot 18-year-old college student infatuated with communism.
Someone gets it!
Thanks for the basic Economics 101 reality for all businesses!
Expenses are all the costs of doing business.
All expenses are marked up and this is called a profit margin.
18 posted on 8/26/2023, 8:24:46 AM by 1FreeAmerican
When you have to subsidize something to make it work...then it’s not free. Of course, there is some relief in knowing that any crooked business practice will be eliminated at some point in the future.
When you have to subsidize something to make it work...then it’s not free. Of course, there is some relief in knowing that any crooked business practice will be eliminated at some point in the future.
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