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Posted on 10/05/2011 9:10:36 AM PDT by Diana in Wisconsin
(Utilities across the country need more money for grid updates and pollution controls, and are passing the huge bill on to consumers. Laura Colarusso on why electricity bills are rising.)
Already weary of high gas prices and 9.1 percent unemployment, many Americans are about to get another kick in the wallet thanks to large increases in their electricity bills.
From Alaska to Georgia and Wyoming to Florida, utilities are seeking permission to pass on hundreds of millions of dollars in new charges to customers to help upgrade aging infrastructure and build new or retrofitted power plants that comply with tougher environmental regulations, a Daily Beast review of regulatory filings has found.
The influx of requests, many still pending before state regulators, has left energy experts convinced that electricity prices will be on the rise for the foreseeable future as the industry struggles to modernize its aging infrastructure.
“They desperately need to upgrade,” says Bill Richardson, the former New Mexico governor and Clinton-era energy secretary who once famously called America a superpower with a Third World power grid. “You’re seeing rate hikes everywhere because this is a widespread, national problem.”
The pending rate hikes are bad news for poor and elderly Americans on tight budgets, as Congress and the White House begin making cuts to programs that help people cope with their utility bills. One program in particular, the Low Income Home Energy Assistance Program, was slashed during the budget negotiations earlier this year, and is slated for even deeper reductions this fall.
During the budget battle, Congress cut $500 million from the program to bring this year’s total to $4.7 billion, down from a high of $5.1 billion in 2010. For next year, the Obama administration requested only $2.6 billion, leaving states with roughly half the assistance they’ve had in the past. The White House rationale relies on the assumption that energy prices will decline, but regulatory filings have indicated the opposite trend is in store.
In the latest round of budget negotiations, House Republicans have suggested adding $822 million on top of Obama’s request for next year, but the gap could still result in rationing.
Already this summer, Illinois cut back on its energy-assistance grants, forcing seniors and poor families to forego air conditioning during the sizzling August heat. And governors of cold-weather states such as Michigan’s Rick Synder and Maine’s Paul LePage—both Republicans—are fighting the drop in funding, warning that people could freeze. Northeastern Democrats are equally concerned by the president’s proposed cuts.
“During these tough economic times, it is critical that we both fully fund LIHEAP and ensure that states have timely access to the funding they need,” Rep. Rosa DeLauro, D-CT, says. “These changes could prevent states from being able to respond quickly to severe cold weather and leave the most vulnerable Americans out in the cold.”
The Beast’s review of regulatory filings found at least 16 utilities covering 6.1 million customers are seeking rate hikes of 5 percent or more. Almost half of those want increases of 10 percent or more.
And several more utilities already have received approval for large increases.
For instance, close to three million customers in parts of Virginia, Kentucky, Ohio, and West Virginia that get their electricity from American Electric Power have seen their rates increase between 48 and 88 percent over the last few years. Those rates are expected to rise an additional 10 to 35 percent in the next three years. The reason? AEP officials are quick to blame environmental regulations that they say are going to cost the company $8 billion in compliance and upgrades.
AEP, which operates in 11 states, says it is raising rates because it needs the cash to upgrade its infrastructure. The company plans to retire five coal plants—which amount to 6,000 megawatts of generation— and build at least two natural gas plants by the end of this decade.
“None of this is cheap,” says Mike Morris, AEP’s chief executive officer. Morris predicts that rolling brownouts also could loom on the horizon because the current system can’t keep up with demand, which is expected to grow by 44 percent by 2035.
Electricity rates were static for most of the 1990s and early 2000s. According to the Energy Information Administration, the average residential customer saw his or her bill increase just seven-tenths of a cent per kilowatt between 1998 and 2004. Between 2005 and 2010, the average price spiked about 2.5 cents and then flattened out over last year as natural gas prices dropped, EIA says.
Dozens of factors affect rate increases, but one of the biggest is that much of the transmission system was built at a time when the radio was still the main form of entertainment. The power grid simply can’t keep up with modern demand as more people use more appliances, computers, and gadgets.
We have heated with a wood stove for a number of years now. If I use the heater in the house I get in trouble, but only because the little lady doesn’t like it. She prefers the feel of the wood stove. I think once you use a stove, you’ll love it. I just put up another cord of wood in the last couple of days. I use about two cords a year. Using woods heats you up a few ways. One when you cut it, once when you load it up, again when you stack it and again when you bring it into the house. It’s work but I like using a chain saw. If you go this route, remember one thing, when cutting with a chain saw, don’t let your mind wander. Keep your focus on cutting the wood. Take your mind off of cutting and the saw will get you. Also, if you get tired, put the saw away, it’s not worth it. There’s an old saying....”If you use a saw long enough, it will get you.” That’s not to say it will but just be aware of what you are doing and use a sharp chain and a good saw.
I could learn, and better yet I wouldn’t drink your stash.
It is a travesty, plain and simple.
RE: I have worked very, very HARD at getting my electric bill down from a high of $400/month (ex ran a business out of here) to the $120/month it is now.
Wow! Great job!
On a more important note... Go Pack Go!
You know we have it down to a science!! : )
That doesn’t take “Juice!” LOL!!!
FUBO!
Feds: competition concerns in Duke-Progress merger
Emery P. Dalesio, AP Business Writer, On Sunday October 2, 2011, 6:58 pm EDT
RALEIGH, N.C. (AP) — Federal energy regulators are giving Duke Energy and Progress Energy 60 days to describe how they would remedy anticompetitive effects of their merger in their North Carolina and South Carolina home markets if they’re allowed to form the country’s largest electric company.
The Federal Energy Regulatory Commission issued an order late Friday that conditionally approved Charlotte-based Duke Energy’s purchase of Raleigh-based Progress Energy, but it told the companies to propose solutions to protect competition in the Carolinas. The agency said remedies could include selling off power plants, building new transmission lines, or joining a regional transmission authority.
Update the grids! Cancel the pollution controls!! That should help ease the situation.
Obama promised higher energy bills before he was elected. It was no secret. Why should the idiots who voted for him in 2008 care now?
“when cutting with a chain saw, don’t let your mind wander. Keep your focus on cutting the wood. Take your mind off of cutting and the saw will get you. Also, if you get tired, put the saw away, it’s not worth it. There’s an old saying....”If you use a saw long enough, it will get you.” That’s not to say it will but just be aware of what you are doing and use a sharp chain and a good saw.”
Also, you need to wear chainsaw chaps while cutting. Otherwise, if you cut the femoral artery, you will bleed out quickly.
“I’m old, beat-up, broke, unemployed, worn out, used hard and put away wet. (Did I mention homely?)”
Damn, I hate competition!
Good thing I look smashing by candlelight.
/////
That’s alright, I can’t see that well in candlelight anyway. LOL
"Perfection is the enemy of the good."
Dunno. Never tried.
Good point. I have never worn them but I should. Thanks for the reminder. Some times we need to get hit upside the head.
Ummm, I could convert to Mormonism and have multiple wives?
{{{{shudder}}}}
Right on man. Call our representatives with this. We need leaders with cajones.
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