Food for Thought: Should Everyone Continue to Subsidize Utility Costs for a Small Group?

We have talked a lot about Utility Companies, the Public Utilities Commission (PUCO), the politics of it to a lesser extent, and the controversies that have cropped up around these issues.

Sen. Tim Grendell recently sued on behalf of North East Ohio Residents claiming the Electric Utilities are breaching contract by upping the rates of all-electric customers.  Both the PUCO and Electric Utility admits that everyone else subsidizes the artificially low rats of all-electric users, those using electric furnaces more specifically.

Its also good to see that Rep. Lorraine Fende has finally showed her face to her constituents; Rep. Fende hosted a town-hall forum on utilities.

QUESTION: Should everyone else artificially keep the approximately 100, 000 customers who use electric heat electric rates low?

QUESTION: Did Sen. Grendell think about the rest of us, or is this just a bombastic attempt to grab headlines?

The real problem hear is that BOTH Sen. Grendell and Rep. Fende have sat idly by over the past year as WE, your faithful blog, started poitning these issues out.  Furthermore, both Rep. Fende AND Sen. Grendell were in the State Legislature when Gov. Strickland's so-called energy bill, S.B. 221.

S.B. 221 mandated that Utilities reduce production, which, you guessed it! decreased revenue!

Who do you think is and is going to make up for lost revenue?  Enter the failed light bulb distribution program from the fall.

Here is the so-called energy bill that both Rep. Fende and Sen. Grendell were around for
SB 221 Energy Bill
For you layman out there, us included, here is the bill analysis
SB 221 Bill Analysis

Fende and Grendell Catch On: Someone is Finally Looking at the Plight of Utility Consumers in Ohio

It looks like Loraine Fende and Tim Grendell have been paying attention to us and has decided to take some action on issues we have been discussing for months.  Loraine Fende will have a town hall meeting to discuss electrical rates.  Tim Grendell filed a class action lawsuit in Geauga County common Pleas Court regarding the rise in electric rates for some people.

We have been discussing these issues for months, see here, for instance.
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Let's digress for a moment. Everytime we try to deal with substantiave issues (e.g. utilitiy companies, the Public Utilities Commission (PUCO), etc.) a local City Council OR the Board of Commissioners OR Finance District OR a County Board try to or publicly announce tax increases or that they are thinking about tax increases.

 Then, there are political machinations about who will be which party's candidate for what.

The Democrats slate card in Lake County is set, and has been: Dan Troy is political force, like-it-or-not, and the Democrats control hold OH-62 and OH-62 House seats. Therefore, all has been quiet about which Democrat will run.  Today, Dave Fiebig announced his candidacy, against Mike Zuren, for the Republican Party nomination for the OH-62 seat.

That has left our Republican friends.
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However, months ago we decided to dealve into the utilities compamies, utlity bills the Public Utilities Commission, etc. and try to point out how much legislators in Ohio, the Governor, and their political flunkies have helped the utility companies take more of your money.

We are glad to see Rep. Loraine Fende and Sen. Grendell following our lead and paying attention to these issues.

More to follow.

First Energy Doing Well During Recession

As we mentioned earlier one of the most powerful government entities is the Public Utilities Commission (PUCO). On January 30th we started to explain how powerful PUCO and took at look at our electric bills.

We MUST turn a watchful eye back to the PUCO, its new commissioner, and our utility companies.

The Plain Dealer wrote this afternoon on their website about  First Energy's purchase of Allegheny Power.  The most interesting part of the article is the discussion of First Energy's sales, revenue, and earnings per share.

The Akron utility Thursday reported 2009 earnings of $1 billion, or $3.29 per share on total sales of $12.9 billion. That compares with $1.34 billion in profits in 2008, or $4.38 per share, on total sales of $12.1 billion.

The company's fourth quarter 2009 profits came to $238 million, or 78 cents per share, on sales of $2.95 billion. In the last quarter of 2008, the company earned $332 million, or $1.09 per share, on sales of $2.8 billion.

Interesting.  Remember a few months ago when First Energy and the PUCO went on damage control to contain the public outrage over the $23 being charge for two Compact Fluorescent Light Bulbs?  Most of the this charge resulted in the lost revenue caused by the use of CFL's.  

Looks like First Energy is still doing pretty well.

Is your electric Bill going up in that NOPEC Community? The Effects of Big Gov't Meddling.

It's cold out there!  We told you earlier in the year the disservice The Northeast Ohio Public Energy Council (NOPEC) has done its member communities by caving into pressure exerted by the electric utilizes' lobbyists. Click here to see if you are in a NOPEC community.

Utilities are more or less under the the thumb of State of Ohio Government via the Public Utilities Commision (PUCO).

Enter the politics!!!!

By the PUCO's own admissions, they are very very powerful (see here):

The Public Utilities Commission of Ohio (PUCO) affects just about every household in Ohio. That's because the PUCO regulates providers of all kinds of utility services, including electric and natural gas companies, local and long distance telephone companies, water and wastewater companies, and rail and trucking companies. The PUCO was created to assure Ohioans adequate, safe, and reliable public utility services at a fair price. More recently, the PUCO gained responsibility for facilitating competitive utility choices for Ohio consumers. The PUCO Agency Overview outlines the duties and responsibilities of the PUCO.

The key word in the quote from the PUCO's website is REGULATE.

Let's not get into theory of the PUCO...its impact on your life...the effect(s) of BIG GOV'T meddling...YET!  A place to start off is with something we can all relate to: your monthly electric bill.  We will approach our discussion of how Big Gov't and its regulation of utilities from the ground up.

 Let's first get a handle on those electric bills!  Took a look below.

Electric Bill Explanation

NOPEC sells Lake County Short

The North East Ohio Public Energy Council (NOPEC) negotiated a paltry 6% discount for its member communities' residents, and a 4% discount for commercial customers from First Energy Solutions for residential electricity supplies. NOPEC released a statement on their Website today, see here.

The following picture is taken from NOPEC's website and lists the Lake County member communities.

A 6% discount is all we get? NOPEC...you let us down! We had a 10% discount this year! Times are tough...companies want business. All you got us was 6%?

According to the article NOPEC negotiated with First Energy Solutions (FES) a one time $12 million grant for energy conservation in FES' service area.

The press release goes on to say that FES will save NOPEC residential and commercial members $19 million through 2019.

A 6% discount is letting FES off too easy.

Can we Afford Higher Utility Costs Now?

Many in Lake County are serviced by First Energy. Even in communities that participate in the popular NOPEC program still have their electricity delivered by First Energy and billed by them.

Not too long ago the State of Ohio passed legislation that allowed for competition in the utilities market. The North East Ohio Public Energy Council (NOPEC) ensued as not-for-profit lobby force that negotiated betters rates with outside suppliers for participating communities. The result: 12% discount on electricity in NOPEC communities.

However, the State Legislature passed a law last year that required utilities to reduce sales, reduce output, use re-newable sources for generating power, etc.

The result was First Energy trying to charge you $21 for two light bulbs! A firestorm ensued!

First Energy is back at it again, and is asking for more time to craft a similar plan. The Plain Dealer covers it here.

There is a push to implement "smart grid" technologies that will help us reduce utility costs in the midst of all this legislation. For instance, the "smart grid" technology would internet based communications to communicate with the energy grid about your energy consumption.

No problem. Technology is great, so is the internet! We could all try to use our resource better. But, using less should not cost us more.

Can Lake County Residents afford higher utility rates in the face of all the tax levies and decreasing wages?

What do you think?

Painesville Power Plant gets a BAILOUT

The local fishwrap has a story today about a $3.74 million grant given to Painsville in order to help its city-run power plant comply with House Bill 221.

This grant to the Painesville power plant is a bail out due to the Ohio Legislature's meddling in power production and utilities.

Ohio House Bill 221 is the wrong-headed attempt by State lawmakers to force utilities into using more so-called green power and green sources for power generation.

Sure, we at this blog love technology; internet, computers, smart phones, high definition televisions...you name it! All these things require electricity to work! All the homes and offices that these devices require gas to heat them!

You get the drift!

However, everything the Government gets involved in ends up screwed up! Take Ohio's attempts via House Bill 221 to get people to conserve electricity.

Guess what the utilities did?! The local electric utility decided it was pass out two compact fluorescent bulbs at a cost of almost $22. Last time I checked six bulbs could be bought for $12 at Lowe's.

The extra cost was due to the revenue that the utility would lose due to less demand.

So, the tax payers make-up the utilities' difference...now we give $3.74 million to the Painsville power plant?

Every time the government does something it costs us money!

Thanks a lot Painsville! We are bailing out your power plant...that's what this boils down to!