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Conserve energy to save money on increasing electricity bills
Even more dramatic utility rate increases are ahead. The increasing electric bills will sadly further squeeze households that are now struggling with spiraling gasoline prices. How to conserve electricity is now even more important. The increases come after rising fuel prices have already pushed up utility bills by nearly 30% during the past five years, which is the largest jump since the 1970s energy crisis. Fuel costs are again the main culprit. In Virginia, Potomac Edison, which is claiming high coal and natural gas prices, is planning to raise rates 29% on July 1, which will increase a consumers average monthly residential bill from about $70 to $90. Another example in the ways electricity prices are increasing. AmerenUE, which is Missouri's largest utility, has recently asked for its first rate increase in 20 years, a 12% boost, mostly to cover higher fuel costs. Public Service Co. of Oklahoma socked its customers with a 25% increase on June 1. The price of coal, which powers half of U.S. power plants, has more than doubled since last year. The price has increased because of surging energy use in India and China. Natural gas prices have also increased up to 50% on high U.S. demand. If we do not conserve electricity and find ways to conserve energy use, expect this pattern to continue. Even drought is impacting electricity prices. In California, the worst drought in years has forced PG&E to replace cheaper hydroelectric power with natural gas, which has helped prompt it to seek 13% rate increases. Conserve energy with your computer. In extreme cases, some utilities are seeking several increases. In New York City, Con Edison, which raised rates 4.7% in April, is now seeking increases of 5% in each of the next three years to fund over $5 billion in new equipment after a 2006 Queens blackout. That increase is on top of an anticipated 12-13% rate increase this summer for higher fuel and energy charges. But a smart meter will help conserve electricity. More. Expect even bigger rate shocks if federal governments legislation, which is anticipated by 2010, passes and forces coal-fired generators to pay higher fees to emit global-warming gases. American Electric Power, the nation’s largest coal-fired generator, would have to raise rates 115% to pay the higher fuel costs, recover global-warming fees, and build new plants says Hugh Wynne of Bernstein Research. But Wynne says regulators could temper increases by trimming profits.
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