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PEPCO Power Company hikes rates after power outages

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posted on Feb, 3 2011 @ 11:05 AM
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This should get you blood boiling. I don't know about others but my house hold pays on average in winter $400 and up power bills to these jackals. We have toped out at over $700 a month a couple months ago. Well if you ever wonder why your power bill goes up after you may have lost power for days maybe even weeks...
Well PEPCO was outted this week. They increase your power rate right after a power outage to make up for lost revenue. Sounds business as normal right? Well if you are without power services for a week do you still pay for that week....? You might want to check because seems here in the D.C. area PEPCO has been going in after a major power outtage and increasing power rates over the posted rate for that year to make up for lost revenue due to the outtage. Is that fair? If you pay $300 dollars for power and you were without power for a week you could be paying for power you never used.

www.washingtonpost.com...




posted on Feb, 3 2011 @ 11:10 AM
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Since the rolling blackouts in Texas started (which was caused by burst water pipes at the power plant for the most part we havent even had ice or snow yet in Austin!!) if you're not on a long term contract for your electricity, then they are charging $3.00 PER KILOWATT!. My family pays .08 cents a KW right now and were on a long term contract. I saw that BS on the news last night and just couldn't believe it....



posted on Feb, 3 2011 @ 11:11 AM
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reply to post by tsloan
 


As far as price gouging goes: the average net profit margin for the S&P energy sector, is 9.5%. The average for the S&P 500 is 8.5%. Yes, energy companies are more profitable than others...but not by an inordinate amount to suggest they "fix" prices



posted on Feb, 3 2011 @ 11:33 AM
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reply to post by matrixportal
 


I hadn't seen the $3/kWh rate, but I wouldn't be surprised if that was what the market set it to. As far as the rolling blackouts go, the plants in the DFW area pool their electricity into the entire state grid, not just north texas. When they dropped out, the entire grid lost power. Rolling blackouts affected everyone for that reason... I had a co-worker in Houston who reported in that they were getting them there as well.



posted on Feb, 3 2011 @ 11:43 AM
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It sucks that energy prices were raised and we are probably being over charged for electricity but there are some factors we need to think about as the consumer.

Our dollars not only go towards the energy we use but the entire infrastructure that brings that energy into our homes. If you knew how much damage these recent storms brought upon said infrastructure you would be blown away.

In my state we were slammed by ice storms and I sat outside one of the nights for 30 min and watched as the sky lit up blue and green every couple of minutes as transformers blew in the surrounding areas.

When I was in the gas station today I ran into a contract worker who said that thousands of people had been brought in from out of state to help fix the infrastructure so that alone assures me that the damage was severe.



posted on Feb, 3 2011 @ 05:18 PM
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I'm sorry I have no tears for these companies. They have the technology to put the lines under ground in areas storms hit often. The point is when the company advertises it's FMR (Fair Market Rate) Which is what they print on your statement. If that rate is 009.5 per KW that is the price. Thats what you pay. It doesn't say your price is based upon a VMR (Variable Market Rate) Unless you signed a contract then thats on you good luck. If your paying the advertised rate for the year or summer or term then thats the rate period. If the power company cant provide you that service why should you pay for that service if you did not use the power? To increase the power rate after a outtage to compensate for lost revenue when the consumer didn't use the power is down right theft by deception period!
Let me break it down so some can wrap their mind around what is happening.
"If" you go to McDonalds and order a Big Mac and a McNuggets and they tell you they don't have any Big Macs but they have the Mcnuggets but the McNuggets cost $1.25 more than normal to make up for the loss caused by them not having the Big Mac..Get the picture...
Just because you have access to power and you pay for power you shouldn't be charged more per kw after the power outtage comes back on to compensate for the revenue the power company lost because they failed to up grade infastructure or bury lines. These companies are not in the red..
The kicker is the GOVERNMENT has given them LEGAL ACCESS TO THESE PRACTICES!
edit on 2/3/2011 by tsloan because: (no reason given)



posted on Feb, 3 2011 @ 07:28 PM
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I am in the industry but do not work for a utility company.

This is what the PEPCO website explains about the Bill Stabalization Adjustment:

"The BSA (Bill Stabalization Adjustment) is a monthly adjustment that is separate from the initial rate decrease referred to above and will lower rates if Pepco is receiving more revenue than the PSC (Public Service Commission) has approved, and will increase rates if Pepco is receiving less revenue than the PSC has approved."

The price of electricity changes all day long. Check out the PJM LMP map (www.miso-pjm.com...). If you do not like Pepco, chose a competitive supplier (Washington DC is deregulated -- meaning you can shop for a different generation supplier although Pepco will remain your electricity distributor). Set yourself up with a 5 year fixed price and remove yourself from the market.



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