Article View: pnw.general
Article #1010Seattle City Light vs. Puget Power
From: Mark Crispin
Date: Sun, 10 Jan 1993 09:02
Date: Sun, 10 Jan 1993 09:02
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2049 bytes
Phil Hughes claims that Seattle City Light's lower rates than Puget Power somehow ``proves'' that government can do business better than private industry. It does no such thing. It proves that providing utility service to an almost entirely urban or suburban customer base is considerably cheaper than providing utility service to a customer base that includes super-remote rural areas -- especially when, by government regulation, the cost of providing service to the expensive areas is spread out over the entire customer base so that everyone pays the same low rate. If Puget Power were allowed to charge customers what it really cost to provide them with service, people in places like Bremerton would see a bit cut in their rates, people in places like Bainbridge Island would see a moderate cut in their rates, and people in the boonies would see such a massive increase in rates that they'd no longer be able to afford electricity. If Seattle City Light were to take over Puget Power, Seattle customers would see an increase in rates at least to present Puget Power levels. What is surprising is not that Puget Power is more expensive than Seattle City Light, but that it is not *much* more expensive. With the remote areas served by Puget Power, it's a miracle they can keep it down to 6 cents/KWH. One might want to investigate how long-distance calling subsidized local calling during the Bell System years, and why our local bills soared afterwards.
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arc1-ca.pugleaf.net!sparky!uunet!spool.mu.edu!sol.ctr.columbia.edu!eff!ssd.intel.com!ogicse!news.u.washington.edu!news.u.washington.edu!newsShow Full Headers
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Path: arc1-ca.pugleaf.net!sparky!uunet!spool.mu.edu!sol.ctr.columbia.edu!eff!ssd.intel.com!ogicse!news.u.washington.edu!news.u.washington.edu!news From: mrc@Ikkoku-Kan.Panda.COM (Mark Crispin) Newsgroups: pnw.general Subject: Seattle City Light vs. Puget Power Message-ID: <MS-C.726714145.1103527590.mrc@Ikkoku-Kan.Panda.COM> Date: 10 Jan 93 09:02:25 GMT Article-I.D.: Ikkoku-K.MS-C.726714145.1103527590.mrc Organization: University of Washington Lines: 29 NNTP-Posting-Host: ikkoku-kan.panda.com MIME-Version: 1.0 Content-Type: TEXT/PLAIN; charset=US-ASCII