🚀 go-pugleaf

On Tue, 27 Mar 2001 poboxdc@ix.netcom.com wrote:

> Calif. regulator calls for 40% rate increase
> 
> March 26, 2001
> Web posted at: 3:13 PM EST (2013 GMT)
> 
> SAN FRANCISCO (AP) -- California's top power regulator on Monday 
> proposed a 40 percent increase in electricity rates, saying it 
> would encourage enough conservation to get the state through the 
> summer. 
> 
> Loretta Lynch, president of the Public Utilities Commission, 
> said rates should increase by an average of 3 cents per kilowatt 
> hour. The current rate averages 7.5 cents per kilowatt hour. 
> 
> The higher rates could go into effect as early as Tuesday, 
> when the commission meets. Lynch and two other members of the 
> five-member commission were appointed by Gov. Gray Davis, and 
> Lynch's proposal is expected to be approved by the commission. 
> 
> Lynch said the increase was needed to avoid significant power 
> problems this summer. 
> 
> "That number should be all that is needed going forward, to 
> keep utilities solvent and ensure that the treasurer of the 
> state can issue bonds," she said. 
> 
> Any increase would be on top of the 9 percent to 15 percent 
> rate increase the commission approved in January, and an 
> additional 10 percent increase already scheduled for next year. 
> 
> Several lawmakers have said a rate increase is inevitable. 
> 
> "It's obvious to me that unless you rob a bank or win a lottery 
> you are not going to be able to do this without raising rates," 
> said Senate President Pro Tem John Burton of San Francisco. 
> 
> Lynch also supports a "tiered" system that would charge 
> residential and businesses customers more if they're large 
> power users and fail to cut back. 
> 
> Southern California Edison Co. and Pacific Gas & Electric Co. 
> both have pushed for rate increases, and PG&E has said its 
> current rates would be insufficient to cover its bills and the 
> state's. 
> 
> Administration officials have been negotiating with PG&E, Edison 
> and San Diego Gas & Electric about purchasing the cash-strapped 
> utilities' transmission lines to give the companies cash to pay 
> their bills. 
> 
> PG&E and Edison say they've lost more than $13 billion since 
> last summer due to high wholesale electricity costs that 
> California's 1996 deregulation law prevents them from collecting 
> from their customers.
> ---------------------------------------------------------------- 
> (ken)
> 
> When will this insanity stop? Does raising rates really
> discourage use and encourage people to conserve? Is this
> a sham? 

I imagine if we raise rates enough, more people will conserve. At the
moment, only the most frugal consider conserving energy. If gas cost $15 a
gallon (so that a SUV cost $1 a gallon to drive), so you think more people
would buy a Prius that then would cost $0.33 a mile and would save most
people (driving 12k miles) $8,000 a year? At only $1.50 a gallon, you only
save $800 a year with such a car.
 
> Did gasoline prices ever go back down?

The prices won't go down unless demand goes down...

Andrew