Thread View: pnw.general
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Started by Mark Crispin
Sun, 10 Jan 1993 09:02
Seattle City Light vs. Puget Power
Author: Mark Crispin
Date: Sun, 10 Jan 1993 09:02
Date: Sun, 10 Jan 1993 09:02
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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.
Re: Seattle City Light vs. Puget Power
Author: David Ruggiero
Date: Mon, 11 Jan 1993 03:26
Date: Mon, 11 Jan 1993 03:26
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mrc@Ikkoku-Kan.Panda.COM (Mark Crispin) writes: >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. Sorry to both of yous guys, but the main reason that Seattle City light rates are among the lowest in the country (lower than almost any other major urban area - this shoots a hole in Mark's argument) is that 50-75% of their power is supplied by their wholly-owned, fully-amortized, and (relatively) cheap hydroelectric dams on the Skagit River. Puget Power, on the other hand, has to either generate its own power using fossil fuels or buy it at higher (near market) rates from the BPA (with its newer, higher-cost dams and WPPSS involvement), or at very high (full market) rates from the West Coast grid. You two can argue public vs. private, rural distribution vs. city distribution, and bureacratic (in)efficiency all you like, but these factors almost certainly pale in comparison to the cost of generating the power itself. And City Light's advantage here is so large as to make any other comparisons both silly and moot. -- David Ruggiero (jdavid@halcyon.com) Seattle, WA: Home of the Moss People
Re: Seattle City Light vs. Puget Power
Author: Mark Zenier
Date: Mon, 11 Jan 1993 04:12
Date: Mon, 11 Jan 1993 04:12
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Mark Crispin (mrc@Ikkoku-Kan.Panda.COM) wrote: : 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. In my observation, people in the boonies are served by PUD's 'cause Puget Power doesn't go there. Mark Zenier markz@ssc.wa.com
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