"a "sweeping and historic" change... "rate decoupling"... If the utility collects more revenue than expected, customers would get a credit on their bills; if they collect less, customers would see a surcharge."
Open that wallet, Mass. resident!
"Mass. orders utilities to restructure charges" by Erin Ailworth, Globe Staff | July 17, 2008
We've all gotten the fliers tucked inside our monthly utility bills encouraging us to be more efficient and use renewable power. But have you ever wondered why your utility company would urge you to conserve when it bills you based on how much energy you use?
Yes, yes I have. Doesn't seem to make sense, economically.
"For a utility, it's like shooting themselves in the foot," according to one state energy official.
And that's why the state Department of Public Utilities yesterday ordered all of the Commonwealth's electric and natural gas companies to restructure their distribution rates in such a way that it doesn't go against the utility's self-interest to help customers lower bills by consuming less.
Ian Bowles, secretary of the state's Executive Office of Energy and Environmental Affairs, called the department's order a "sweeping and historic" change in the way Massachusetts households are charged for energy.
Traditionally, utilities charge customers based on the amount of energy used - from a business perspective that means the more, the better. Under the new order, utilities will calculate distribution rates based on how much it costs annually to run the company and maintain power distribution systems. If the utility collects more revenue than expected, customers would get a credit on their bills; if they collect less, customers would see a surcharge.
Yeah, they are going to kick back rebates, sure. How gullible are you, Americans?
The idea, called "rate decoupling," is that once utilities no longer profit when their customers use more energy, the utilities will help those same customers conserve - as required by the state's newly enacted Green Communities law.
"In a time of high energy prices . . . why would we ever want to regulate utilities in a way that makes them want to maximize power sales?" Bowles asked while lauding the restructured rates. "Fundamentally, this [order] is about maximizing people's chance to save on high energy costs."
Once utilities implement the restructured rates - which are expected to go hand-in-hand with expanded efficiency programs - energy officials say customers probably will see a slight increase in the distribution rate on their monthly bills. That increased rate, however, is expected to be offset by the larger savings that could occur by lowering energy use and becoming more efficient.
"They will certainly see huge benefits," said Paul Hibbard, head of the Department of Public Utilities. He said that under his department's order, customers would be protected from a large surcharge by a requirement that utilities monitor their revenues on a consistent basis and ask for rate adjustments as needed.
Promises, promises, promises!
Benefits like the Big Pit, I mean, Big Dig, right?
Officials with the state's leading utility companies, NStar and National Grid, praised the order from the Department of Public Utilities.
That definitely draws a RED FLAG from me!!
"We think it will lead to lower energy demand, which will lead to lower bills," said Tom King, president of National Grid in the United States. "We, as a company, believe that we have got to reduce consumption."
PFFFFFT!
Honestly, I am TIRED of HOT FART MIST from GOVERNMENTS and BIDNESS!!!!
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