Technical > Home Improvement > Not enough electricity demand? Increase prices!

Not enough electricity demand? Increase prices!

That is the double edged sword of electricity... And many other utilities that take a lot of capital expenditures.
--
Brian

"It drops into your stomach like a Abrams's tank.... driven by Rosanne Barr..." A. Bourdain

reply to alkizmo

reply to alkizmo
In your country, costs are almost all fixed asset and personnel, you don't have fuel costs as your primarily Hydro ( 92% ), so its basic math. Divide the these costs by the number of kwh sold. Less sold means each unit costs more, no way around it

There is no way to win with government protected monopolies. Use too much, pay more, don't use enough, pay more, use the same, pay more.
--
"If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand." - Milton Friedman"

reply to alkizmo
It's just yet another example of the Golden Rule: "He who has the gold, makes the rules."

reply to alkizmo
You always have the option of building your own power plant ( think solar grid-tie for example ) if you feel the prices being offered are unreasonable

reply to alkizmo
1. Maybe that's why the government shouldn't own major electric utilities.

2. Your rates are already lower than everyone else's, so don't complain.

reply to alkizmo
Same thing happened in Florida with water bills. After they implemented permanant water restrictions, everyone complied so well that the utility wasn't making enough money so they raised the rates.

reply to alkizmo
That surplus wouldn't exist if certain tree huggers on both sides of the border didn't oppose construction of transmission grid interconnects to the southern axis, who's inhabitants are more than willing to drink the Canadian Hydro!
--
~Help Find a Cure for Cancer~
~Proud Member of Team Discovery ~

Bunch of dendrophiliacs.

They don't want trees to be cut to make way for the tramission grids, yet the result is those south of the border will be using more electricity produced by burning fuel (whichever fuel). The electricity from QC is all hydroelectric.

Champlain Hudson Power Express - »www.chpexpress.com

Note that Hydro-Quebec has been skeptical of the project and reluctant to spend the $500 million for their part of the project.

reply to alkizmo
This isn't any great surprise - there are times of the year when HQ has had to PAY other utilities (particuarlly ConEd in NY) to take their power...

Problem with Hydro generation is it's tough to ramp up and down quickly with demand... So when you've got a surplus of power, you have to do something with it.

I hate to say it, but 5% isn't bad, doubly so, since you're starting with the one of (if not the lowest) price in North America.... Doesn't make it sting less, other then the knowledge it could be worse!

reply to alkizmo

reply to alkizmo
Reminds me of the "great natural gas shortage" of the early 80's. The TV ads were just full of ways to conserve natural gas... lower thermostat, lower water heater temps, night-time setbacks, etc. So we did... and we conserved so much here in NE Ohio that East Ohio Gas Co. petitioned the Public Utilities Commission for an emergency rate increase. They were selling less natural gas, and making less money, so in order to bolster their stock prices, they asked for, and received an immediate rate increase. Bottom line... we all conserved and it ended up costing us more money.
--
Keep your eye on the ball, your shoulder to the wheel, your nose to the grindstone, and your ear to the ground. Now, try to work in that position!!!

Eh, just to be an ass: It might remind you of that, but it isn't similar at all. They probably DID have a shortage, but with the pre-existing rates and reduced consumption, they couldn't cover their fixed costs. In the hydro quebec case, they overshot their pre-emptive infrastructure investments thinking we'd want more

reply to alkizmo
That's what they did in Ontario. So no surprise.

In addition to raising the Ontario rates, somewhere around 3x in a year, Ontario got to pay more during "peak hours" and have those meters installed to measure "peak hours".

So when you add it all up, Ontario got 4 nice price increases in a year.

So far the energy board in Quebec has shot down price increases, and as a matter of fact *lowered* prices by a few cents when Hydro Quebec went to them for a price increase due to the extra money they are making in the export business to Ontario and to the New England States.

So will it go up? Hard to say. Press has been reporting the pass two years that it will and instead it went down the past 2 years. So yeah, maybe it's due for an increase now. Depends on their exports of power. But I doubt they will get the full blown amount they are asking for. Especially if they move into the Maritimes.

What is more pressing is that the energy board approved that the new wireless meters be installed. You know what that means, and what is coming down the road... Peak time usage. It wasn't allowed in this first pass, but the meters will now go in.

People have a choice now, per the Quebec energy board:
1. Pay 200$ (one time fee to register a non-wireless meter) + something like 17$ additional per month (forget the actual number but about that) to pay for a meter reading to come to your house.

or

2. Install the new wireless meter at no cost.

I'll be one of the people holding out and paying the "fine" to stay as I am till I see how they plan on conning people over the next few years. That's worth 17$ to me (plus one time 200$ fee). I do not want to end up being a sucker on TOU (time of day usage) since I have an in-ground pool going and someone in the house w/ a heart problem that requires AC going non-stop in summer. I would be stupid to pay TOU prices. But I haven't worked it out since no TOU rates are in place... YET!

So, alkizmo, are you going to get the new wireless meter? Requires you to put it in writing with your 200$ cheque to Hydro-Quebec.

Also, I think you failed to realize that our prices have dropped the past few years instead of increasing due to Hydro-Quebec's Power exporting business. Energy board said All Quebecers must reap the rewards of this. Hydro Quebec pop'd an artery in their head I think when this happened.

Hydro Quebec to Energy Board: We need a 10% increase

Energy Board to Hydro Quebec: Indeed, lower rates by 3% this year and next.

Think you missed that part...

With warmer winters being had in Ontario and some New England states, less energy being consumed, thus the excess. But don't be fooled. Hydro Quebec has some of the best clauses on earth to milk the Americans and Ontarians.

The Excess energy exported is sold back to Hydro Quebec and a fraction of a penny than what it is sold for. So that excess power is already paid for. Energy Board knows this. And if the states and Ontario don't buy power on contract pricing, then they pay 10x the cost if they need more. So they all take more than is required or they (American and Ontario power resellers) will be forced to increase rates on American and Ontario consumers.

Win-Win.

Don't let the press hype get to you... yet. I'd be more concerned with the wireless meters that are going to be installed soon.

reply to alkizmo

Rates. N.A.