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http://www.cleanmpg.com/photos/data/2/AmericanFlag.jpg Utilities across the country need more money for grid updates and pollution controls, and are passing the huge bill on to consumers. (http://www.thedailybeast.com/articles/2011/10/05/americans-face-double-digit-hikes-in-electricity-bills-to-fund-upgrades.html)

http://www.cleanmpg.com/photos/data/501/power_lines.jpgLaura Colarusso - THEDAILYBEAST (http://www.thedailybeast.com) - October 6, 2011

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.... http://www.thedailybeast.com/articles/2011/10/05/americans-face-double-digit-hikes-in-electricity-bills-to-fund-upgrades.html

Yep. As I said in the other thread, we're getting an 18% increase over the next year.

Makes me glad I've insulated the attic more and added solar 3 years ago to my roof. Every appliance upgrade, I try to make sure is more efficient than the last (although, some are darn near impossible - stoves, clothes dryers, for example). My next water heater I plan to go with the new GE Hybrid type, since I can't easily do a tankless one.

That said, IF/WHEN these increase proposals get approved, they should make it a requirement to show that these increases go specifically to a separate account that can only be used to pay for the improvements. It'll never happen, but without transparency and holding people responsible, nothing will ever change. If this would be done, I'd be OK with some increases, as long as it doesn't go to show increased revenue, which will lead to increases in executive pay, while other employees are told they have to take cuts or live without increases due to cost cuts.

For us it would be infrastructural costs rather than pollution.

Maine is 47% NG, 29% non-hydro renewable, 22% hydro, 2% oil and 1% coal.

Maine is adding a fair amount of wind. That may mean some transmission upgrades.

Currently we're also going to smart meters. Ours was replaced a few weeks ago. Maybe they'll offer TOU. I'd like to, in principle, although I fear that the use would hurt at certain times. However, TOU could make off-peak electric heat cheaper than using oil. I'm a fan of electric heating. Electric heaters don't need annual servicing. ;)

Maine had a nuclear plant until 1996 when it was shut down due to deficiencies that were uneconomical to fix. I bet they'd seem cheaper now. ;) PS Anyone wants some nuclear waste?

For us it would be infrastructural costs rather than pollution.

Maine is 47% NG, 29% non-hydro renewable, 22% hydro, 2% oil and 1% coal.

Maine is adding a fair amount of wind. That may mean some transmission upgrades.

Currently we're also going to smart meters. Ours was replaced a few weeks ago. Maybe they'll offer TOU. I'd like to, in principle, although I fear that the use would hurt at certain times. However, TOU could make off-peak electric heat cheaper than using oil. I'm a fan of electric heating. Electric heaters don't need annual servicing. ;)

Maine had a nuclear plant until 1996 when it was shut down due to deficiencies that were uneconomical to fix. I bet they'd seem cheaper now. ;) PS Anyone wants some nuclear waste?

They switched me to smart meter earlier this year. I'm still trying to figure out why my usage went up as much as it did this summer compared to last. I'm sure if I had TOU metering, my bill would be a smidgen lower because of the PV array during summer months. Not sure if it would backfire in winter if I ran the heat pump instead of the oil furnace, though.

BGE never needs to ask permission. The only Republican governor we had in the past 50 years used his power to turn BGE into an unregulated monopoly. The company tripled the rates. Sure, that made Erhlich a one-term wonder, but I'm sure he was paid well for making the decision he made.

Every other bill has gone up far faster than the average income, so I suppose the electric bill may as well go with them. At least we have a modicum of control over energy consumption, and in my household we both agree that minimizing it is a priority. Reality is that we desperately need to modernize and harden the US grid. Failure to do so will impact all of us. Like others, however, I question whether the extra cash going out every month will actually go toward that necessity.

BGE never needs to ask permission. The only Republican governor we had in the past 50 years used his power to turn BGE into an unregulated monopoly. The company tripled the rates. Sure, that made Erhlich a one-term wonder, but I'm sure he was paid well for making the decision he made.

The law was passed by a democrat governor, rates used to be state controlled until 1999 and then were allowed to be driven by the market.. rates took a big jump to $0.10 per kWh in 2007 when it was BGE's turn to be de-capped, from a previous $0.05, its down to $0.089 now...

Power generation by BGE is 49% coal, 22% gas and 19% nuclear.

Here are the reasons:

http://en.wikipedia.org/wiki/Maryland_Electric_Deregulation

"Law was passed in 1999. Over a period of 6 years, various customers’ rates became unfrozen without incident. In 2007, however, that changed.
In 2007, one of Maryland’s largest groups, BGE’s customers, was slated to move to market rates. Enormous rate increases in the wholesale electricity industry at that time meant that, while their rates would become comparable to other Maryland utilities, BGE customers would have their rates increased by 72%. This increase, greater than any other utility and coupled with election year politics, created a huge outcry.
The events leading up to the 72% increase in customer's rates has been referred to by BGE executives, state commissioners, and state legislators as "the perfect storm". In the years since rates were capped, fuel prices had risen dramatically. Natural gas prices had risen about 125%, regular gasoline prices had risen over 150%, and heating oil prices had risen almost 200%. Maryland region’s fuel prices are tied greatly to natural gas prices. Subsequently, when Hurricane Katrina and Rita cause major natural gas pipelines to shut down for a short period, natural gas prices skyrocketed. Therefore, when BGE went to the market to procure power, prices for power were abnormally high."

Here is a blog from Maria Allwine, Green candidate for Governor:

http://candidateblogs.baltimoresun.com/maria-allwine/2010/09/19/bge-and-deregulation-still-a-failure-ater-all-these-years/

Actually, I just read the fine print on my rate-increase notice. It's to pay for a new power plant and was planned for a couple years already. It's not related to the EPA's CSAPR or other regulations.

That means my rates are likely to go up EVEN MORE (on top of this 18% increase) in the near future. :(

That's terrible news, Andrew. :( I guess you won't be going to electric transportation any time soon.

Hot water and dryer are big users of electricity.. but you can use a clothes line and you dont need hot water to wash clothes, just a good detergent and some presoak time for heavily soiled clothes (mommy might complain). Solar water heating was popular in the 70s but it went away, it might be a good idea for a family with a lot of kids.. kids and their clothes go thru a lot of hot water.

Dishwasher, a good idea to get one with a built-in electric heater.. fluorescent light are obvious. Fridges have become very efficient, they only use about 50kWh a month usually.

If your weather is dry enough you may be able to use a swamp cooler type AC, other wise turn up the AC and install lots of fans.

That's terrible news, Andrew. :( I guess you won't be going to electric transportation any time soon.

This is another issue that will impact the future sales of BEV and PHEV vehicles. The price premium included in the Cost of Ownership figures are going to start getting wider and wider as these electric rates increase.

Actually, I just read the fine print on my rate-increase notice. It's to pay for a new power plant and was planned for a couple years already. It's not related to the EPA's CSAPR or other regulations.

That means my rates are likely to go up EVEN MORE (on top of this 18% increase) in the near future. :(

What kind of plant?.. how much are your rates now and how much will they go up to?

It's another coal plant in Arkansas. At least it'll be better than the ones right next door. They're grandfathered in pre-Clean Air Act. If they make any "major" upgrades, they have to comply with the CAA, so of course the make no upgrades at all. :rolleyes:

18% is planned over the next year. My current rate is a very low 8c/kWh. That's the positive side of old and dirty coal plants - they're cheap.

Hot water and dryer are big users of electricity.. but you can use a clothes line and you dont need hot water to wash clothes, just a good detergent and some presoak time for heavily soiled clothes (mommy might complain). Solar water heating was popular in the 70s but it went away, it might be a good idea for a family with a lot of kids.. kids and their clothes go thru a lot of hot water.

Dishwasher, a good idea to get one with a built-in electric heater.. fluorescent light are obvious. Fridges have become very efficient, they only use about 50kWh a month usually.

If your weather is dry enough you may be able to use a swamp cooler type AC, other wise turn up the AC and install lots of fans.

Agreed with the hot water & dryer, without a doubt. The Energy Guide sticker is still on my HWH and it estimates over 4000 kwh/annually for usage. I only use my dryer when I have to. I have a pop-up umbrella clothes line that I can move inside and outside as needed. Unfortunately, the backyard is shaded almost all day right now and 60 degrees doesn't dry anything too quickly. In summer, I hang outside unless it's raining (I can usually plan around that) and winter I hang up inside downstairs near the pellet stove. "Free" drying and added moisture to the air a little. I only wash clothes in cold water unless towels and sheets. Then it's usually hot for wash, cold rinse and it's an HE washer so not much hot water used.

Dishwasher heater for what? I've never run the heating element (for drying) in a dishwasher ever. The dishes are always dry within an hour or two of it stopping. If you're talking for heating up the water as it comes into the dishwasher, then that's different :).

Ceiling fans allow me to keep my A/C around 75/76 all summer. I used to be higher, but I don't like to feel hot when I'm sitting on my couch or sweating at night when sleeping.

All good ideas, though!

It's another coal plant in Arkansas. At least it'll be better than the ones right next door. They're grandfathered in pre-Clean Air Act. If they make any "major" upgrades, they have to comply with the CAA, so of course the make no upgrades at all. :rolleyes:

18% is planned over the next year. My current rate is a very low 8c/kWh. That's the positive side of old and dirty coal plants - they're cheap.

Is that 8c/kwh the all-in rate? I pay 9.9c/kwh for generation, then a little more for transmission. I think it's all around 12.5c/kwn when it's all said and done. That generation rate may change soon, I know I locked in for 2 years last time, but I don't remember when that was :D

That's all-in, divide my whole bill by kWh used.

You guys have it pretty good. Last I checked, my all-in rate was something like 20 cents per kWh. If I didn't have gas heat and hot water I would be in rough shape (though our gas costs are way above average, too).

A good trick is just to shut off the hot water coming into the washing machine, but you may get in trouble if you "forget" to tell your wife.

I hang my clothing to dry inside, so what if it takes a couple of days to dry?.

My washer has a single control on the pipes for the hot & cold. It seemed like a good idea at the time, but I've come to not like it as much since then. Needless to say, I have no desire to re-do it at this point.

True, clothes can take a couple days to dry, but I've always worried about them being damp that long. I know, it's probably nonsense. I need to move my clothes line back inside again, since the temps are dropping, and see how the clothes are if they take a couple days to dry.

18% is not bad. If our plant converted to natural gas, our buss bar cost would increase between 300 to 400%. I actually consume power that I produce at work. I would not like my $.10 kw rate to go to $.40 or more.

The national grid does need upgraded. Has anyone seen the movie Eagle Eye? :eek:

This is another issue that will impact the future sales of BEV and PHEV vehicles. The price premium included in the Cost of Ownership figures are going to start getting wider and wider as these electric rates increase.

Of course it's competing against gasoline, which is on a long-term upward trend. It's a solid $3+ in most of the country and that's with growth rates in China and India falling and economic problems in North America and Europe.

PEV has an advantage compared to general electricity use: TOU and solar.

PEVs are largely charged off-peak and that keeps cost low. The off-peak rate should rise at a lower rate since much of the increase in electricity costs are due to rising peak demand. Under a TOU scheme the trend in PEV running costs could drop relative to gasoline prices.

Rising electricity costs mean further incentive for solar PV. When you combine TOU rates with a system that dramatically reduces peak consumption you have more reason to install solar. That makes adding capacity to cover PEV cheaper and in some places the fee structure actually provides an incentive to add consumption, which PEVs can do very effectively.

Sometimes it takes a rise in cost of the status quo to make people change to an alternative that was already providing a long-term gain. The cost rise reduces the payback period and people jump.

Hi Al:

The EIA has a really nice graph on the increase in electricity rates over 50 year period IIRC and it is pretty linear and under inflation. I remember seeing it about a month ago and should go look it up. I either case, $0.40/kWh is probably not going to happen "on average" for quite some time although anyone on a demand rate system could easily see that when the local grid goes red for LOAD reasons in the summer for the south.

Wayne

Hi Wayne,

At .40 Kwh if they think they have problems with OWS protests now, let electric rates head up that high. The problem is even a .05 or even a .10 increase in electric rates over the next few years would be enough to scare away the "average" potential customer. Sure it would still be cheaper than a gasoline powered vehicle to operate but the increased costs of electricity would extend out the payback time. BTW most people in reality are never really looking at this supposed payback issue. We do, but most consumers buy a car because they want THAT car or truck in that color.

Al