Fewer kWh + Price Drop = Lower Electric Bills

Residential customers paid seven percent less for electric service in February 2016.

Residential customers in New York paid 23 percent less for electric service this February than in February 2015, per new Energy Department data released Thursday. In Massachusetts residential customers paid 22 percent less. Same in Connecticut.

Part of the reason was fewer kilowatt-hours taken. In New York, residential customers took 9 percent fewer. In Massachusetts, they took 15 percent fewer. In Connecticut, they took 17 percent fewer.

How Low Can Electric Bills Go? 1.38%

In just 1 year out of last 58 has electricity been more economical.

There have been 58 months of March since March 1959. Of all those months of March, only one had a smaller percent of consumer expenditures spent on electric bills than March 2016.

In March 2016, just 1.38 percent of consumer expenditures paid electric bills. That's what the Commerce Department reported on Friday, in its gross domestic product release.

Only March 2000 had a smaller percent, 1.34 percent. March 2016 and March 2004 tied for second place, with 1.38 percent paying for electricity. 

FRI Public Utility Symposium 2016

The 2016 FRI Symposium  will examine the management challenges of balancing the modern public utility’s need for profitability with the requirement of providing customer service that is safe, reliable, and affordable. Included in this discussion will be issues of physical and cyber security, environmental responsibility, infrastructure enhancement, regulatory design, and the management of investor relations. The Symposium’s panels will examine current practices in these areas, identify emerging new solutions, and offer thoughts regarding developments in the near-term future.

May PUF: Trump and Tesla on page 72

Tesla died at the height of World War II. The FBI became quite concerned. Truckloads of Tesla’s papers and other property were impounded by the government, then meticulously inspected by John Trump. You mean that John Trump? I do.

The May issue of Public Utilities Fortnightly was mailed to you yesterday! Jam-packed with 19 thought-provoking articles and columns from our industry's intellectual leaders. 

Here's a fun morsel from page 72:

On January 7, 1943, Tesla died in his room at The New Yorker Hotel in Manhattan. He died at the height of World War II, with the Battle of Guadalcanal still raging. 

Cost of Electricity in the Roaring 20s: Minneapolis

Lighting a lamp in Minneapolis was a pricey proposition.

Yesterday we looked at the cost of electricity in Wichita, Kansas in 1923. Today we'll look at the cost of electricity in Minneapolis in 1926, ninety years ago. 

Minneapolis General Electric charged ten cents per kilowatt-hour for the first three kilowatt-hours used over the course of a month, per room. Per room?

So the number of rooms in your home impacted your electric rate and bill. Because the utility charged seven and a half cents per kilowatt-hour for the next three kilowatt-hours. Again, per room.

Cost of Electricity in the Roaring 20s: Wichita

Lighting a lamp in Wichita was a pricey proposition.

Have a five-room house in Wichita, Kansas? In 1923?

A small interconnection with the grid allowed you to take up to four hundred watts at a time. Not a lot of electricity. 

You paid your utility a dollar if you used ten kilowatt-hours over the course of a month. That's a dime per kilowatt-hour. 

Now that's a little less than what you pay today for a kilowatt-hour in Wichita, about twelve cents. Though a dime was worth a whole lot more back then. 

A dime in 1923 was like $1.39 today. So the cost for a Wichita kilowatt-hour in 1923 was effectively $1.39.

New Consumer Survey on Electric Bills vs. 1984

Does electricity take a larger share of Americans’ budgets than in 1984?

This week's columns have analyzed the brand new Labor Department data on how much American households spent on everything during the year ending June 2015, including electricity.

The semi-annual Consumer Expenditure Survey is the source for understanding Americans' electric bills by region, income, age, urban/rural, etc. The government actually asks many thousands of households each quarter to track every single purchase. The credibility and detail, especially through mining the micro-data, is unequalled. 

How Many Does It Take to Screw in a Light Bulb?

Organized markets will ensure the optimal number of bulbs are screwed in, at the marginal cost of bulb screwing.

How many utility commissioners does it take to screw in a light bulb?

Five. A problem for three-person commissions. Three commissioners to hear testimony on whether changing the bulb is in the public interest. One more commissioner to direct staff to write the decision and order, to screw it in. And a fifth commissioner to hear appeals, as to whether screwing it in is actually least cost.

How many utility rate managers does it take to screw in a light bulb?

Nikola's Memorable May, and The Donald

May Birthdays

On May 1, 1888, Nikola Tesla was issued seven patents that literally made our world. Together with an eighth patent issued two weeks later, Tesla laid the foundation for an alternating current-based electric grid.