Back in the day, the US Government passed laws to prevent the formation of monopolies. You see, it had been discovered that monopolies, after eliminating competition, were free to set prices at "whatever the market will bear" levels.
Unfortunately, there was a major loophole that was not closed. That loophole was the case of GOVERNMENT MONOPOLIES.
In many places, public utilities have been deregulated and competition fostered. While cases like Enron suggest this process has been far from flawless, our utility rates in Texas, where competitive energy prices exist, are FAR lower than in Washington where competition is illegal and mostly things are run under the thumb of "Public" Utility Districts. One such is in Gray's Harbor, called "Gray's Harbor PUD."
Starting out, look at Texas Utility rates, in the screen shot below:
You will note that the rates range between 7.1 and 11.1 cents per kilowatt hour.
ON THE OTHER HAND, if I look at my latest Gray's Harbor PUD bill, it CLAIMS to charge me 8.9 cents per KWH (which is, in itself, higher than the equivalent Texas rate). This claim is completely and misleadingly false, if one considers the exorbitant fixed charges. Our most recent bill was $52.77 for 87 KWH. That comes out to an effective rate of 60.7 cents per KWH. For comparison, the sticker on my newly purchased water heater suggests that a national average rate of 12 cents was about right. Either way, we're getting hosed here in Gray's Harbor, thanks to a government MONOPOLY.
$50 of this bill is fixed, regardless of what one actually uses. Consumer Reports warned us about such shenanigans, here. I called Gray's Harbor PUD and actually managed to talk to one of the directors who shrugged things off, citing "cost of service." In fairness, Gray's Harbor PUD charges are a lot more than the "outrageous" level in the Consumer Reports article. Since we had that conversation, the PUD has RAISED both the fixed and variable bill costs. Including periods when we lived FULL time in an incorporated service location, our LOWEST rates came to right around 20 cents per KWH. That bill is a full 3 times the rate in the deregulated Texas market where there's little hydroelectric power available.
Well, the cost of service argument might be considered, except that the directors of this public monopoly hire their relatives and engage in all sorts of non-power activity such as providing internet (but NOT to private parties).
In reality, this appears to be a case where a PUBLIC monopoly is as wasteful as any PRIVATE monopoly would be. I can't see why I ought to be "turning cartwheels" (the PUD director's term) so I can pay TEN TIMES the KWH rate I'd be paying under a free market system where I actually had a choice about how to get my power. What's more, I can't see why I should be thrilled that I have NO CHOICE in this matter. Per the PUD website, here:
"A charge in accordance with District fee schedule shall be paid by the customer for reestablishing service at the same location within ten (10) months of 3 Grays Harbor Public Utility District Rate Schedule – Effective May 1, 2019 discontinuance of service. Seasonal service is not available to accounts with term contracts or transformer capacity minimum."
I could go on and on, but you get the idea. One wonders if the Gray's Harbor PUD website might explain why their rates are so much higher than the rest of the US. Naw, thought not.
Monopolies are not something to be desired - even when they are supposedly publicly owned. Power corrupts, and absolute power corrupts absolutely. That is true even when we are talking about power...
Unfortunately, there was a major loophole that was not closed. That loophole was the case of GOVERNMENT MONOPOLIES.
In many places, public utilities have been deregulated and competition fostered. While cases like Enron suggest this process has been far from flawless, our utility rates in Texas, where competitive energy prices exist, are FAR lower than in Washington where competition is illegal and mostly things are run under the thumb of "Public" Utility Districts. One such is in Gray's Harbor, called "Gray's Harbor PUD."
Starting out, look at Texas Utility rates, in the screen shot below:
ON THE OTHER HAND, if I look at my latest Gray's Harbor PUD bill, it CLAIMS to charge me 8.9 cents per KWH (which is, in itself, higher than the equivalent Texas rate). This claim is completely and misleadingly false, if one considers the exorbitant fixed charges. Our most recent bill was $52.77 for 87 KWH. That comes out to an effective rate of 60.7 cents per KWH. For comparison, the sticker on my newly purchased water heater suggests that a national average rate of 12 cents was about right. Either way, we're getting hosed here in Gray's Harbor, thanks to a government MONOPOLY.
$50 of this bill is fixed, regardless of what one actually uses. Consumer Reports warned us about such shenanigans, here. I called Gray's Harbor PUD and actually managed to talk to one of the directors who shrugged things off, citing "cost of service." In fairness, Gray's Harbor PUD charges are a lot more than the "outrageous" level in the Consumer Reports article. Since we had that conversation, the PUD has RAISED both the fixed and variable bill costs. Including periods when we lived FULL time in an incorporated service location, our LOWEST rates came to right around 20 cents per KWH. That bill is a full 3 times the rate in the deregulated Texas market where there's little hydroelectric power available.
Well, the cost of service argument might be considered, except that the directors of this public monopoly hire their relatives and engage in all sorts of non-power activity such as providing internet (but NOT to private parties).
In reality, this appears to be a case where a PUBLIC monopoly is as wasteful as any PRIVATE monopoly would be. I can't see why I ought to be "turning cartwheels" (the PUD director's term) so I can pay TEN TIMES the KWH rate I'd be paying under a free market system where I actually had a choice about how to get my power. What's more, I can't see why I should be thrilled that I have NO CHOICE in this matter. Per the PUD website, here:
"A charge in accordance with District fee schedule shall be paid by the customer for reestablishing service at the same location within ten (10) months of 3 Grays Harbor Public Utility District Rate Schedule – Effective May 1, 2019 discontinuance of service. Seasonal service is not available to accounts with term contracts or transformer capacity minimum."
I could go on and on, but you get the idea. One wonders if the Gray's Harbor PUD website might explain why their rates are so much higher than the rest of the US. Naw, thought not.
Monopolies are not something to be desired - even when they are supposedly publicly owned. Power corrupts, and absolute power corrupts absolutely. That is true even when we are talking about power...
1 comment:
can't remember seeing a pay phone - years and and years !! ago
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