Quote:
Originally Posted by RobertSmalls
I'm paying more for the hookup fee than for the electricity.
Frank, does the marginal price per KWh change? Here, unless you are a commercial or industrial customer, you pay $16/mo + $.12/KWh, regardless of how much you use. Since the marginal price is constant, there is no incentive to use more.
The utility actually has to compete with third parties on the electricity they sell, but they have a monopoly on hookup and delivery, so that's where they schedule their profit.
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Yes, as kwh goes up, price/kwh goes down.
What gets me is the near doubling of the fee in such a short time. And the regressive rate structure. With the extra $9/mo, it feels like, why shouldn't I use more electricity? After all it's only a couple bux til I equal my fixed costs.