Comment Up
By: Guest Blogger, Expert in Electric Utilities
"The proposed FY 2012 Residential Electric Rates have been restructured and tiered based on total energy consumption. For customers using less than 500 kWh hours per month, the rate of electrify will be reduced from 12.76 per kW hours to 11.30 per kWh hour. Residents using electricity exceeding 500 kW hours, but less than 1,000 kW hours will only pay 13.30 cents per kW hour. Customers exceeding 1,000 kW hours will pay 15.30 cents per kW hours reflective of the cost of service for this high consumption. All resident customers, irrespective of consumption, will pay a minimum monthly cost of service charge of $34.50. The big Scam!
As seen in Chart 3, residential customers using less than 500 kW hours per month because of good energy conservation will see a reduction in their electric rate of 5% while those residential customers using in access of 2,500 kW hours per month will see an increase in the power bill of 1% per month. The FY 2012 Residential rates are consistent with the City Commission‘s desire to reduce the cost of power as well as promote conservation."
Now, because I have absolutely no idea if the CM wrote this paragraph, or even fully comprehends what the paragraph means, I will break it down into terms that even someone who may be a little less educated or even intellectually dishonest (can we all say CM?) can understand. You see, Ms. CM, parsing words does not work when you have an informed electorate.
The CM states that residents using less than 500 kwhr/month will see a rate reduction from $0.1276/kwhr to $0.1130 kwhr or 11.4%. Residents with a usage greater than 500 kwhr/month but less than 1,000 kwhr/month will see a rate increase from $0.1276 to $0.1330 per kwhr (4.2%) and those residential customers with a usage greater than 1,000 kwhr/month will see a rate increase from $0.1496/kwhr to $0.1530/kwhr, or 2.2%. There is currently a $8.90 service charge connected to each bill (pg. 70 of new budget). But, the catcher here is that the "Cost of Service Charge" for each and every residential meter will be increased to $34.50/month from its current $8.90 or a 387% increase. Now lets break this down further to see exactly what it means for the poor and elderly customer.
The poorer customer nearly always lives in the smaller home, can afford few amenities and will restrict the use of electricity to a far greater extent than the well-to-do. So we will begin with the poorest amongst us and work our way up the sociological food chain.
Step 1:
In 2011 the customer using less than 500 kwhr would pay a base rate of (499 kwhr * .1276 + 8.9) = $72.57 for their electricity.
In 2012 this same customer would pay (499 kwhr * .1130 + 34.50) = $90.89 or a 25% increase.
Step 2:
In 2011 the customer using between 500 kwhr and 1,000 kwhr/month would pay a base rate of (999 * .1276 + 8.9) = $136.37 for their electricity.
In 2012 this same customer would pay (999 * .1330 + 34.50) = $167.37 or a 23% increase.
Step 3:
In 2011 the customer using greater than 1,000 kwhr/month would pay a base rate of (1,000 & .1496 + 8.9) = $158.50 for their electricity.
In 2012 this same customer would pay (1,000 * .1530 + 34.50) = $187.50 or a 18% increase.
You see, the CM has used an old carnival trick (can we all say shell game?) to tell the townfolks that they would be receiving a rate decrease, and how the City would be soaking the rich, when in fact, it is the poor and the elderly that will be required to shoulder an even heavier burden than before.
Now while the CM may wish to say that she is not screwing the poorer amongst us, her policies tell a different story. And this is but one small example in a budget replete with assessments, and each will place a significantly heavier burden on the poor than the wealthy. And it does not require a Helen Keller to be able to see a difference in an 18% increase and the 25% increase, nor does it require an Einstein to run the numbers.
Note by Lynn's Little Bit of Trivia: When I queried the $34.50 charge at a city commission meeting, I was told it was only a minimum...it was for all of those who turned off their electricity when gone for the Season, as an example, because it still cost the city money to service that meter. In fact, the CM said it cost more like $42. Commissioner Maxwell stated that too. It continues to state in this Budget that we all will have a minimum monthly cost of service of $34.50 irrespective of consumption. The Commission has not eliminated this from the CM's budget.
The above writer explains this further after being interrogated/questioned by me--That chart (page 70) is no longer valid. All of the numbers changed when Mark Beauchamp conducted the current rate analysis. There isn't even a number in there for <500 kwhr.
I am giving the CM the benefit of the doubt by saying that the "Cost of service" is going from $8.90 to $34.50 as there is nothing in the document that specifies that the $9.90 charge will be taken out and substituted for the $34.50. If it is not, then the new "Cost of Service" charge will be $34.50 + $9.90 = $44.40.
The CM had said in her budget document that every meter would be charged the $34.50 regardless of whether they used power or not. She even made the comment that seasonal residents would be charged that regardless of whether they lived in LW.
If the $9.90 is retained, then the $44.40 charge is kicking the poor in the balls even harder.
The high rates are killing the economics of this city. They are one of the primary reasons folks will not move here and business stays away. But what is even more upsetting is the Commission and City Manager telling people and the Palm Beach Post that rates are going down. At least have the dignity to give it to us straight. Send a message this November and send Golden packing. She supports the city manager 100% and never questions anything or stands up for the residents. The mayor will have to make a move now to control the city manager or get voted out too.
ReplyDeleteWhy does your source want to remain anonymous?
ReplyDeleteFor the same reason that you probably post that way--for all the usual reasons.
ReplyDeleteThe candidates will be out enjoying their Sunday going here and there and ignoring the budget and its inequities. I don't see any of them stepping up to the plate to learn more or make a change. Pathetic, all of them already elected and those who want to be. It is just too much to grasp. All those who are not incumbents have a great opportunity here. Let's hear from you and what you think.
ReplyDeleteDoes the FAB have an opinion on this?
ReplyDeleteNot surprised in the least, same as adding "assessments" because we have maxed out our mill rate. A tax by any other name is a tax. An increase in the electric utility bill may not be a "rate" increase but its an increase. I wish the Post would do a bit more digging and tell it like it is.
ReplyDeleteI'm not one who moans and groans about our electric rates, I pay an electric bill in Boynton Beach (a rental property) and I don't find them that much different but come on tell it like it is cost to consumer is going up.
Any comment from the city?
ReplyDeleteWhen I do NOT get a comment, I have to assume it is correct. It is in black and white right in the budget. It has not been corrected and NO one on the Commission has told me whether or not they have talked with the CM about its validity. I have brought it up and am ignored. We all can read the written word. We all have brains to figure out what something says. There is no reason for me to believe that what is written is not true. Therefore, the only way we will find out is checking our first elec bill after the new fiscal year as it will be hidden.
ReplyDeleteIf it is not true, then why not correct the wordage?
I moved to LW in March 2010 from a 2700Sf house in Lighthouse Point, with an inground pool and always running the A/C and pool pump, my electric bill never exceeded 250.00a month...I now live in a 1500sf house with central air that we use only on the hottest days and no pool, so no pool pump, timer on the hot water heater and other conservation measures with things unplugged etc and my bill averages $376.00 and has even hit $600.00...
ReplyDeleteI have had the meter replaced 3 times since moving in and its new read from the street digital ones and things dont seem to be improving...I am disgusted with the outright stealing from the LW Electric utilities and would love to disconnect altogetehr and put up a windmill with my own generator and storage system...where do they get 500kwh from on smaller houses? my current usage is 64.9kwh per day!
My electric usage is ALWAYS less than 125kwh per month. my bill went from an average of $22 a month to $34.5 a month, then they add the tax. $38.05 every month, +-$.03. I would have to use more than 305 kwh to see an increase in my bill. I have absolutely no reason to conserve electricity.
ReplyDelete