[Watchdogs] Electric rates going up for the small guys, down for the big users

[Williams, Mark (San Antonio)]

You know Paul, you like to work the data to support you position.

Here is what happens:

If you consume 1,000 KWH in a month, your cost will be $126.70
If you consume 750 KWH in a month, your cost will be $100.65 or $26.05 less or $0.1042 per KWH
If you consume 500 KWH in a month, your cost will be $  74.60 or $26.05 less or $0.1042 per KWH
If you consume 250 KWH in a month, your cost will be $  48.55 or $26.05 less or $0.1042 per KWH
If you consume 100 KWH in a month, your cost will be $  32.92 or $15.63 less or $0.1042 per KWH
If you consume   50 KWH in a month, your cost will be $  27.71 or $  5.21 less or $0.1042 per KWH



Let's look at the "big house" in HSB

If you consume 1,271 KWH in a month your cost will be $154.90
If you consume 3,000 KWH in a month your cost will be $335.10 or $180.20 more or $0.1042 per KWH

Looks like to me if you consume less you pay less at the same rate as everyone else.  Sounds fair to me.

Using Average Cost like you have is an erroneous way to look at this.  To have average cost the same regardless of consumption is a way to subsidize in the same class of customer the low power consumers at the expense of the high power consumers.  Sound socialist to me.

Mark

From: watchdogs-bounces at pec4u.org [mailto:watchdogs-bounces at pec4u.org] On Behalf Of Paul Langston
Sent: Thursday, May 07, 2009 8:06 AM
To: PEC Watchdogs
Subject: [Watchdogs] Electric rates going up for the small guys, down for the big users

Watchdogs:
I downloaded the Board Package for May 11, 2009.
You may remember the first talk by the Guernsey Rate Specialists last year sometime.  He said that the bulk of the increased rate structure would fall on the small guys.
That is exactly how the proposed rate increase reads.
They jack the numbers around but here is the way the mop flops:
At about 1,000 kwh useage, the price is the same.
below 1000 kwh, the rate goes up.  Using 750 KWH, the price per KWH goes from 13.35 cents up to 13.42 cents/kwh.
Using 500 kwn, the price goes up from 14.62 up to 14.92 cents per kwh.
Using 250 KWH the price really goes up, 18.68 up to 19.42 cents per KWH.
Using only 100 KWHs the price goes from 30.68 cents up to 32.92 cents per KWH.
If you use only 50 KWH per month, the price goes from 50.68 cents up to 55.42 cents per KWH.

That is not good but the real insult is that if you are a big user, the rate starts going down.   For the average user, at 1,271 KWHs, your cost goes down from 12.25 cents down to 12.19 cents.
If you are running a big house here in HSB like a lot of my neighbors, 3,000 KWHs goes from 12.11 cents down to 11.17 cents per KWH.

The same old story, the little users are subsidizing the big users.  There is little incentive to cut back on consumption because the rate goes up for those using less than 1,000 kwh per month. No change.  Did we need this half-million dollar consultant study to continue the status quo?

The Magnificent four, no doubt will pass this into their rate schedule.  No doubt, the two new guys that we elected will string along with their new found friends. JUAN, we just gotta have a little talk.

Paul Langston  830-598-1322


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