7% Electric Rate Increase Proposed

[boomerbust]

Source: jsonline

7% electric rate increase proposed
We Energies blames decline in sales amid recession
By Thomas Content of the Journal Sentinel

Posted: July 6, 2009

By the numbers
7% Proposed rise in residential electric bills for 2010, up from an earlier forecast of 4.9%.
1% Projected growth in profit for Wisconsin Energy Corp. in 2009. Its profit rose 7% in 2008 to $359.1 million.
-13.6% Projected drop this year in We Energies' electricity sales to large commercial and industrial customers.
As consumers and businesses scale back during the worst economic slump in decades, We Energies says it must ask for more.

The deepening recession is slowing sales of electricity more than projected, so the Milwaukee utility is asking the state Public Service Commission for a bigger rate increase to cover the gap.

Under the new proposal, residential electric bills are forecast to rise 7% in 2010, up from an earlier forecast of 4.9%.

The utility now is seeking $126 million in higher rates, up $50 million from its earlier request. The new proposal would mean an annual increase of $64 next year for the typical residential customer using 600 kilowatt-hours of electricity per month. The typical customer's bill would rise by another $44 in 2011, under the utility's plan.



No link yet.

[2Design]

1. as people cut back to lower their bills the utilities want the same revenue

so they raise the rates then people cut back more, tolls same way, everything is the same, we cut back to save and they raise to keep their income the same

[LiberalEsto]

2. And ultimately

we end up sitting in the dark
:(

[WriteDown]

6. See California for a similar phenomenon. nt

[ProgressiveProfessor]

8. I am so happy with my grid tie solar

I am producing right at 100% of annual usage, may be a bit more are I had it tuned up. Then again, I live in prime solar country.

[hughee99]

3. Just the other day, there was talk of a "per mile" tax

To "make up" the tax revenue "lost" when people drive more efficient vehicles. It's a little disturbing that some of the same people asking us to do more with less are looking to do less for more money.

[Javaman]

4. I got in just in time. I opted for wind energy here in Austin with a locked in rate for 15 years. nt

[MadAsHell]

5. Geez, maybe they should have to find cheaper ways to make their product

Just like every other business has to when the market slows down.

[pattmarty]

7. These utilities (monopolies) for years have been bilking...........

.............consumers through the so called "boards" that are supposed to monitor and "fairly" ok rate increases when applicable. I believe that a "company" is in business to make a DECENT return on investment, not an obscene profit that fucks the consumers.

[Joanne98]

9. Get rid of the shareholders!

[RantinRavin]

12. What exactly will that accomplish?

Where do you think these companies get the capital to build new power production from ?

[Kittycat]

10. If that's how things worked, I might still have a business

[jayfish]

11. Now Let Me See If I Have This Straight.

When demand is high, their cost is high so they raise rates. When demand is low, they aren't making as much money as they once were so they raise rates. Wow, what a fine fucking business model that is! I'd love to apply that kind of logic to my own finances.

Jay

[fascisthunter]

13. while people die from lack of funds to pay for said electric bill

the investors benefit. Another incentive...sick

[WriteDown]

15. So people not paying helps investors?

Who knew? :shrug:

[Mari333]

14. jesus. our small town just raised the rates 29 percent

to help defray costs for their goddamned new water plant, which had cost overruns.
yep, nickel and dimed to death .

[2Design]

16. I hate when they move threads - this is a problem every where and they stick it under wisconsin so

no one sees it - AAAArrrrgggh mods

[doc03]

17. Get used to it Cap and Trade will raise them

a lot more.

[ProgressiveProfessor]

18. More they do, the faster my solar system pays off...