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Electricity prices

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Kevin A Gerrity
Kevin A Gerrity Member Posts: 5
in THE MAIN WALL
I live on Cape Cod MA (NE) and deregulation attacked us about 4 years ago. Now we have a wind farm in Nantucket Sound being perposed. Our local power plant filed for BANKRUPTCY and two large bridges that get repainted every 4 years ( it takes 4 years to paint). But with all this people still do not want the solutions coming directly from their pockets. Electric bills over $180.00 in winter. Local power co. boat named DEREGULATION. WHO'S LAUGHING NOW

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  • Wayco Wayne_2
    Wayco Wayne_2 Member Posts: 2,479
    I have heard from 2 customers now

    that they have heard about electricity prices going up. One said Congress is voting to lift restrictions on elec Utilities in the near future. I had no idea there were restrictions on pricing. Perhaps this is why the Grid infrastructure is in such poor shape. I know my area is served by coal and nuclear. I was thinkng that would keep my prices down since we arent tied into nat gas or oil, however, you need fuel to drive the trains that deliver the coal and I'm sure there are other ways that one thing ties to another. What have you guys heard?? WW

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  • John R. Hall
    John R. Hall Member Posts: 2,245
    Caps coming off

    WW:

    I have heard that there are caps on rates that utilities can charge for electricity, and that some of these caps will be lifted soon in certain states. I'm trying to get more info and hope to publish something soon in The News. But you can be sure that rates will rise in the very near future, which will definitely have an affect on consumer's buying choices for HVAC equipment.
  • Wayco Wayne_2
    Wayco Wayne_2 Member Posts: 2,479
    Did a Google

    http://www.cato.org/pubs/handbook/hb105-40.html
    Electricity Deregulation. This is a link concerning the deregulation of the Electrical Utilties. Makes me nervous. We've heard the Gov tell us of the benefits of deregulation in the Past with the phone companys and the like. Oh sure the competition will drive down the prices they say. I'm paying a lot more for phone service than I ever did. I'm not sure this is the same thing as lifting the caps or is just a precursor. Energy is at the heart of everything and it's rising cost is going to affect the SOL (standard of living) and further seperate the classes. My God I'm starting to sound like Lenin. Sorry I guess I'll chill. I guess I just don't want my electric bill to go up. :) WW

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  • Bob_41
    Bob_41 Member Posts: 28
    PEPCO and BGE increases as of 7/1/2006

    Wayne,

    Yup ... you've heard correctly. 39% for PEPCO and up to 72% for BGE. Here's a bit of the report and the full link:

    The SOS prices resulting from this year’s procurement process will go into effect on June 1, 2006 for Pepco and DPL residential customers and July 1, 2006 for BGE residential customers. Based on the competitive bidding process, for Pepco residential customers, a typical bill will increase by approximately 39% or $468 annually as of July 2006. For residential customers of DPL, a typical electric bill on an annual basis will increase approximately 35% or $464 annually. For residential customers in the BGE service territory, a typical bill will increase 72% or $743 annually.

    http://www.psc.state.md.us/psc/aboutus/Press/SOS2006.pdf

    Basically the crux of the report is that it's reasonable since the price index of heating oil and natural gas have climbed in the 190% range and 127% respectively. So these rate increases are much lower ....

    My take is that the "competitive" bidding process is a bit more rigged then we care to imagine.

    Looks like it will be candles and barbecue's this summer to save some $$$ for air conditioning!

    Bob
  • Joe Brix
    Joe Brix Member Posts: 626
    Many utilities

    have to file with state public service commissions for rate increases, so electric rates lag behind energy price changes. I think many have not passed on all the fuel costs increases to their customers yet. Funny that utilities that burn coal feel increases are justified because oil and gas has gone up and their increases are "only" 30%. Some people who think a heat pump will magically reduce their heating costs better think again.

    I still think that oil and gas prices will drop slightly in a year or so, but utilities never lower rates once raised.
  • Xc8p2dC_2
    Xc8p2dC_2 Member Posts: 150
    Sadly,

    I think the energy supply utilites, are going to learn a lesson [and not a good one for us] from the oil industry

    With major oil companies having record profits in a time of $3.00 per gal of gas [10 billion in the 4th qtr if I remember correctly]

    You can almost bet the energy suppliers are going to want a piece of the profitable action, and use that as there means of leverage against the regulators they have to petition for rate increase

    A good axample is this winter, in the north east were having an unusualy mild winter [Jan we had 9 days over 50]
    but the rates have not come down....I pay $.20 per kwh and near $2.00 per CCF

    My only counter, is to strive for efficiency!! and thanks to the WALL, It's working!!! >> RC
  • RoosterBoy
    RoosterBoy Member Posts: 459


    you want to know the sad thing. is people spend 2-3 hundred grad to build a house. i have been shopping around for some solar that will do 600kwh per month. and for about $14 grand you could set up a solar system tied into the grid and that would pay for your electric or at least 80% of it per year.

    so if i was building a house for 2to3 hundred grand whats another 14k for free electric.

    i hope someday something good comes along i am waiting a few more years but when i move back into my house i can setup an off grid system for $10k it will power my house 90% of the time and i can ad to the system every 2 years and make it better. in the summer i will just use my ac unit on the grid the reset of my house will be on my own system.

    thank god my my brother is a licensed e2 electrician he said that he would hook it all up for me all i have to do is weld the tower and mount the panels and run the wire he will hook it all up. he wants to do it to his house also and i will weld him a tower and help him. so for me it will cost less then $14k because all i need is material.

    looks like solar is a good business Even for dhw but people are losing there job and prices are going up people wont have money to get into this. it's like the oil and electric companies got us by the balls. that with the cost of living people wont have the money to switch over. our jobs are going over seas. health insurance car insurance gas is going up i don't understand how people who buy them big houses are going to keep them something has got to change.

    thanks
  • JimGPE_22
    JimGPE_22 Member Posts: 1
    Back in the day....

    When I first started in this business in the late '70's for a million Btu's of output energy, you would pay $5 for gas, $10 for oil and $15 for electricity. Gas and electricity are now at parity at $20/million, assuming a 90% efficiency on the gas.

    And I just converted from electric to gas heat three years ago....
  • Weezbo
    Weezbo Member Posts: 6,231
    i have read recently....

    that there are sme very sharp power plants slated to come on line in the future. they make electricty and Hydrogen this seperated hydrogen can be used for fuel in the automotive and transportation industry.

    it is conjecture on my part buh i figure this deregulation is for two reasons Idealistically,one is to provide fund tickets for these power plants the other is to amalgamate more power plant and distribution systems to level costs. some large plants were built thinking things would go one way and it went another ,that means some one has to pay for the 20 20 hindsight and that will likely be us the consumer.
  • Eric Johnson
    Eric Johnson Member Posts: 174
    Somewhat OT Wood Energy Rant

    Wood is the only (heating) fuel source that you have a prayer of controlling the cost of, and that's only if you cut your own. Every other source of energy, with the possible exception of solar and wind, is going to rise in relation to the market price for oil. I don't think wind is practical for the average consumer, and solar has its limitations. And anybody who thinks wood pellets are not going to follow oil prices, is kidding himself.

    I think you're going to see wood-burning technology improve in the coming years so that the days of obnoxious (and noxious) smoky boilers will be a thing of the past. They've already done that with wood stoves, and it's made a big difference in air quality in some areas. Heating with wood is a big commitment, but if you can save $4,000 to $5,000 annually on the gas or oil bill, it starts to look attractive.
  • Nick Dearing_2
    Nick Dearing_2 Member Posts: 7
    Yes...

    it's too bad. The Republicans tell people that the deregualtion will drive prices down...(and it can) but just as you said...it doesn't work. They don't like to tell you that prices can also go up. They want to privatize everything!
  • Nick Dearing_2
    Nick Dearing_2 Member Posts: 7
    Yep.

    with your own wood, you can ALWAYS control your energy prices.
  • Wayco Wayne_2
    Wayco Wayne_2 Member Posts: 2,479
    Just when I was calming down

    I walked up out of a basement to hear the customers radio. A fellow on NPR (my favorite station) was ranting about energy. He was saying, " I can't believe the lack of urgency on the entire nations part to do something about the up coming energy crisis." That got me started. I started talking to the radio saying, "I hear you brother", and "Amen to that." Fortunately the customer was out of the house. :) WW

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  • singh
    singh Member Posts: 866
    going down..??

    My rates went down from .13cents/Kw to .07cents/Kw. NYSEG my utility supplier though has invested in other sources(suposedly) like wind and hydro.And I have option to buy from other utilities.
    Plus I'm on a variable rate plan(this month worked out for me)with a fixed monthly payment option.The 12th month I either owe or have a credit.(Takes about an hour to decipher bill:) Works very well for me.I have a modest home ,originally all electric baseboard and 40 gal electric water heater.
    I now have a seisco tankless for domestic, and Thermolec for heat and I'm slowly adding radiant to all rooms.My heat load is around 32,000 btuh at design,and that was before I added new windows and insulation this year,once I add new siding with house wrap and Dow FanFold board under that I hope to lower the load even more.
    I had plan for the thermolec to be temporary,but now I think it may not be a bad idea to use it for a bit longer. It sure beats a pricey mod/con I originally was going to install.
    I once told this to a potential client,who had a similar house as mine, I told her to stay with electric for boilert, just add radiant, she looked at me with like I was crazy. She went with an oil co. who put in a way oversized Cast iron boiler for such a small load.Oh well, My point is if the house is small enough, why noy electric?

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  • RonWHC
    RonWHC Member Posts: 232
    What is not being

    said is that BG&E locked in wholesale electric prices in 1999. They are now expiring. You won't see long term contracts like that again. Thanks, Sarbanes-Oxley.

    The part of the equation that gets overlooked, particularly by the downstream media, is that energy prices (in the new de-regulated market) are separate from delivery costs. You can buy your energy from the lowest priced supplier. However, the regulated folks who deliver the product, maintain the distribution facilities, read the meter, do the billing, collect, & distribute the monies, are going to get a piece of the pie. They can't be price shopped. Yet,
    they always seem to get the black eye when prices rise.

    Wonder if that guy on NPR (WAMU?) was yelling because we can't get our act together to produce more energy here at home? Or maybe build some Nuke or clean coal plants? Or possibly telling Gummint to back off exhorbitant energy taxes? Probably not.
  • chapchap70_2
    chapchap70_2 Member Posts: 147
    phone service costs more?

    "We've heard the Gov tell us of the benefits of deregulation in the Past with the phone companys and the like. Oh sure the competition will drive down the prices they say. I'm paying a lot more for phone service than I ever did."

    I'm paying more for everything than I did at the time the phone company was deregulated. Didn't it used to cost 30 cents per minute to call across some states on a land line phone? Who pays that now? Would the technology have progressed as fast with one phone company to provide cell phones, two way radios and the like that we take for granted?

  • Wayco Wayne_2
    Wayco Wayne_2 Member Posts: 2,479
    Thanks for the

    info on MD prices Bob. You must live in my area. Fortunately I live North of Pepco and am supplied by Allegheny who is locked into prices until 2009. Look out when that happens.

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