Saturday, March 23, 2013

This makes NO sense!

My 12 month contract with my electric provider is almost up, so a few days ago I began shopping around for the best deal for the next 12 month term.  Bottom line is this:  It looks like my rate will be going UP $.03 per kWh.

Huh?  S'plain it to me Lucy.



Here's a map showing the BOOMING areas of natural gas production in the US.  See that big blob of red at the bottom/center of the map?  That's Texas, where I live.  We're sitting on so much oil and natural gas (not counting the gas that's spewing forth from our politicians in Austin) I'm afraid to strike a match....I'm scared the whole damn place might explode!

And what is the main fuel used by our power companies in Texas to produce electricity?  Natural gas!  Not to mention super-cheap nuclear and wind power, Texas being the nation's leading producer of electricity from the latter.

Did I mention that gas is selling at near record LOW prices?  So low producers are cutting back on new drilling because the market is in freefall?  Yet my electricity rate is going UP?  Really?

Oh, and as a corollary, did I mention that our gasoline prices are =/+ the national average?  FYI, the producing oilwell map looks similar to the natural gas production map....it's right here in my back yard.  

You know what I think?  I think we're getting...


S


8 comments:

  1. Scott, you are missing a basic rule from Eco 101.

    "Regardless of costs, we will charge whatever the idiots are willing to pay without cutting back on demand. If price causes demand to fall to where are profits are not maximized then we will lower prices if we can. Otherwise F'em!"

    It is really quite simple.

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    1. Oooooohh....I get it now. Thanks Lucy. ;)

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  2. Scott - it's like this: private enterprise always knows what's best for you. We can't tell businesses what to do, or they'll move jobs to China. So please, be accepting of the screw.

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    1. Well, OK....but is a little kiss too much to ask for? I'm guessing dinner is out of the question?

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  3. Oh dear, you were always headed for disappointment if you were expecting fair treatment from an electricity company!

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    1. Does this mean I won't get any pretty colored eggs for Easter either?

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  4. I'm positively shocked by this. About as shocked as my apartment rent going up $60/month despite that the apartment to my knowledge isn't getting any newer than it was when I moved in 3 years ago.

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    1. Well, you know....being the Easter season I was kinda hoping for another miracle.

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