Response to Cicchetti Re: Net Metering

A response to the letter by Charles Cicchetti in our April 2016 issue, which was a response to the letter by Ashley Brown in our February 2016 issue.

As Ashley Brown correctly stated in his letter, large-scale solar projects produce electricity at roughly half the cost of that produced by rooftop solar. Charlie states that customers installing rooftop solar are: “… paying to reduce dependence on greenhouse gases and to expand societal benefits ....” Not exactly.

Response to Two Articles Re: Grid Resilience

A general response to the articles by Michael Deggendorf and by Paul Afonso, Lauren Azar, Dian Grueneich, James Hoecker in our August 2016 issue

Two articles in the August 2016 issue made the irrefutable case that we need to shore up grid resilience. I can’t argue with those measures. But I’m not sure that they are getting to the root of the problem. Perhaps we need to spend more time asking whether small decentralized systems can accomplish the same end as the large systems.

PPI for Generation Lowest Since 2004

Electric generation prices in August were at their lowest point since August 2004, twelve years ago

Electric generation prices are down 15.7 percent since 2011. Prices are down 19.7 percent since 2008.

PPI for Generation, Transmission, Distribution Lowest in 3 Years

Electricity’s Producer Price Index up just 3.7% from August 2004, while overall Consumer Price Index up 9.9%

Late last week, the feds dumped a wealth of August electric price data on our desk. This week, we’re filling you in, on what it all means for utility policy and regulation.

There’s too much to fit in a single column. See yesterday’s column for Consumer Price Index trends in residential electric rates, by region. Here today is another taste. To get the full story, catch all the columns this week.

New Electric Price Data, But First, Thanks!

Overwhelmed with CPI and PPI data on electric prices, and with your PUF site license commitments

Late last week, the feds dumped a wealth of August electric price data on our desk. This week, we’ll fill you in, on what it all means for utility policy and regulation.

But first, thanks! Two months ago, on July 14, 2016, this column announced the new biz model for Public Utilities Fortnightly. 

Sept. 2016 crossword puzzle answers

Spoiler alert!  Here are the answers to the crossword puzzle, Rural Coops, in the September 2016 issue of Public Utilities Fortnightly:

Across

2. association of coops: nreca

5. original name of coops agency: rea

6. coop finance corp.: cfc

8. largest coop, in Texas: pedernales

12. main fuel of coop plants: coal

13. U.S. senator pushed to start coops: norris

14. fourth largest coop, in Florida: withlacoochee

16. in very many coop names: member

20. small Midwest state with eighty coops: iowa

Electric Bills of Low-Income Households

In the Northeast, Midwest and West, average electric bills of 24 million low-income households range from around $1.80 to $2.90 daily

Today we again mine the mother lode, the Labor Department’s Consumer Expenditure Survey. In extraordinary detail, it reports what households spent last year for everything. 

Let’s look at the electric bills of low-income households in the Northeast, Midwest and West. Low-income includes, for this look, households with income before taxes averaging under $30,000 per year in 2014 – 2015. 

We’ll leave aside electric bills in the South. Electric bills there are generally higher where air-conditioners are run harder. 

Electric Bills by Income

Electric bills are around four percent of expenditures for low-income households versus around two percent for high-income households

Today we continue to mine the mother lode, the Labor Department’s Consumer Expenditure Survey. In extraordinary detail, it reports what households spent last year for everything. 

Let’s look at electric bills by income. There are fascinating implications for utility regulation and policy. 

As we wrote last week, a household’s electric service averaged $4.00 daily. Or 2.6 percent of all consumer expenditures.