Quote:
Originally Posted by aerostealth
If we are ever to get to reducing our carbon foot prints we must stop rewarding large users and incentivise conservative users instead, which is the reverse of what we do today. This will require a tiered rate structure like you sometimes see with water utilities.
|
There are no incentives for using more. It seems that way, but thats because bills are structured to pay for fixed costs in a variable way. If i only use 1kwh this month my bill will be about $15 which does not cover the fixed costs associated with maintaining the infrastructure. $90 - $100 is the break point where an electric utility goes from losing to making money. Does anybody think it actually costs 16 cents to generate a kwh of electricity?
Large users pay a lower rate because they would be overpaying the fixed cost portion if they were on the residential rate.