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National Grid Raising Electric rates too May 17, 2008

Posted by truthspew in Uncategorized.
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Not like we don’t pay what I consider to be obscene electric rates already, National grid who gets most of it’s energy from natural gas and coal, wants to raise electric rates AGAIN!

Currently when you factor in distribution, conservation and generation charges we are now paying 14.5 cents per kWh.

It’s ridiculous, the result of years of deregulation. They can charge whatever the fuck they want to charge and we’re powerless to stop them, our only avenue is to use less electricity. Right now I’ve got it pared down pretty far, lots of energy saving things in here.

But we’re still getting screwed. It’s time for the regulatory pendulum to swing back, time to put the clamps down on National Grid and give the Public Utilities Commission some serious teeth, all canines if possible.

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Comments»

1. me - May 18, 2008

More regulation isn’t a solution. Remember the 1970s: regulation (wage and price controls) replaced plentiful, expensive gasoline with sparse, marginally cheaper gasoline.

The only thing worse than plentiful, expensive electricity is more regulated, marginally cheaper electricity and frequent, rolling brownouts.

The solution is less regulation, more competition. Fat chance of that happening in RI, though, Smith Hill thinks like you w.r.t regulation.

=-=-=-Truthspew Says-=-=-=

The main issue is that utilities are natural monopolies, with the exception of telecommunications though in many cases like catv type services you have duopoly service, or in the case of voice and data you have many parties.

The latter case is where deregulation works best. Competition does eliminate the need for heavy regulation in the telecom and data field, but the distribution of electric power and natural gas don’t have such benefit. It would be wasteful to build duplicative distribution networks. Therefore they should be strictly regulated entities.

A bit of a history lesson for you. You do know that over the period of the Bell System they strove to keep costs down which was done by increasing automation. Phone rates were actually dropping in the regulated environment. Imagine that. The Bell System knew how to play the regulatory system to its advantage but at the same time they had to provide better customer service.

And let us not forget the rolling blackouts in California didn’t start until they deregulated, and if you remember that monster Enron was in place. And if power is so plentiful how come it is so expensive? You do know about supply and demand don’t you? I doubt we’re at the equilibrium point.

Now we have National Grid, an entity that managed to scrub their net history clean for I know about what they did in the U.K. They essentially let things go to shit.

Here in RI there’s still enough regulation where they can’t get away with that, but they’ll pass the cost along to us at every step of the way.

As far as price and wage controls, that is not the type of regulation I’m speaking of, instead I propose we re-apply regulation to the electric and natural gas industries.

Believe me, I don’t think like the legislators on Smith Hill, or at least not all of them. I’ve seen the effects of deregulation and I have a long memory, so I know we haven’t benefited from it in the least.

Now for the ad hominem, people like you who don’t understand economics should refrain from jumping into the fray.

2. onanaite - May 21, 2008

Electricity is outrageous, we keep our thermostat at 62 degrees We only use florescent lighting and other cost saving measures and our bill is still well over one hundred dollars a month.

Give me regulation any day.

Onanite


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