Charlotte-based Duke Energy is asking our government — which has mandated that the company keep rates as low as possible — to raise its rates for electricity by about 15 percent.
I think this is a good idea. Here’s why:
For most people, the rate increase will amount to less than $20 per month. Many of us waste that much money on much less important things every day. My hope is that a $20 rate increase will help encourage people to pay attention to their energy consumption and, hopefully, learn to make their homes more energy efficient and to think twice before plugging in one of their gadgets, and leaving it plugged in and on when not in use.
Another reason why this rate hike is good: It’s time to update the fleet. Duke Energy’s energy production fleet, that is. Some of the coal plants are way past their prime, some need to be retrofitted with better equipment, etc. And, some new plants will need to be built to adjust for the population influx that Charlotte continues to draw. All of that takes money, and this is money we want Duke Energy to spend on their infrastructure.
Why? Because updated plants are less likely to be environmentally dangerous and they’re less likely to spew toxins that negatively impact our health.
You think $20 a month is expensive? Wait until you see your bills for the asthma doctor or the cancer doctor. And be glad there will be less strain on our environmental resources — which tax payers will ultimately have to pay to clean up, too.
And, I know: Not everyone can pay an extra $20 per month. I hate that, but I have a proposal: Those of us who can afford to pay more than $20 per month could sign up to do so to help offset the rate increase for those who can’t. I will gladly pay an extra $5 per month to help my community, and I’m willing to bet many of you would be happy to do the same.
This article appears in Jul 5-11, 2011.
Rhiannon – you are kidding right?? Another big company with a monopoly hosing the working class. People cut back on spending and energy use, but big company with no competitors that the gov’t will protect, don’t fret big company you can just jack up your rates. The city raised rates on water when the city had a very successful conservation effort a few years back – so Rhiannon, please tell me you aren’t serious. People have cut back substantially on all things including energy since prices on everything have and will continue to rise as massive inflation continues to cut down us all. But the too big to fail companies and gov’t should not have to tighten their belts, heck no, we can just take it from the people and just try to divert their attention.
“Wait until you see your bills for the asthma doctor or the cancer doctor”????
Does that mean that if I get cancer or asthma now I can point the finger Duke power?
And the trouble with government-enforced monopolies is perfectly encapsulated in this proposed increase. Rather than innovate, develop a new and more efficient product, Duke Power wants to pass the costs of doing business directly on to the consumer. Would you buy a new car that tacked on an extra 15% to the sticker price under the bullet point ‘Research and development to make our cars better’? No. That is an expense that a all competitive competitive companies have to work into the lowest price possible in order to be better than the other guy.
Also, if that surcharge is to be for ‘updating the fleet’ as the author states, does that mean that the rates will drop back down once their infrastructure is upgraded?
Why not call a 15% increase what it actually is: a government backed monopoly taking as much money as they can from people who have no other choice.
What a crock. Obviously written by someone who’s not too affected by the almost-a-Depression the country is in. I am progressive politically, but even I would label this stuff the ideas of a clueless liberal.
This article makes zero logical sense.
Duke Power wants to permanently increase rates to support the short-term cost of overhauling its infrastructure?
Or are we supposed to believe that a power company has a genuine interest in encouraging its consumers to buy less of its product?
This is the consequence of a government backed monopoly, and the perfect example of why those monopolies are harmful to consumers.
Duke Power doesn’t have to worry about how the market will respond to its proposed price increase, doesn’t have to worry about customer loyalty at all since we have no choice, and can create the most ridiculous and transparent excuses imaginable to explain the increase away.
“I’m willing to bet many of you would be happy to do the same.”
How much?
Why not raise the cost of all goods 15% since having less seems to be such a great idea. Maybe we can raise the price high enough on items we need so that no one has any extra money left, Then we could all be equal and poor together!
This is silly. I always love to hear some idiot that say I am so happy the government made smoking so expensive that I just could not afford it anymore.
Rhiannon’s brain must be extremely expensive, since she uses it infrequently as well.
and the fuel for this energy must come from “somewhere else”! Of course the cleaner natural gas can’t be drilled for here. noooo…
As someone who usually agrees with Rhi’s articles…yeah this was really pretty asinine.