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How would you like a 400% increase in electric rates?

BGE customers, take heart. Someone has even bigger electric bills. As the New York Times reports, about Juneau, Alaska: kilowatt use plunged by a third after prices quintupled. That's what I call demand response to price signals!

Electricity rates rocketed about 400 percent after an avalanche on April 16 destroyed several major transmission towers that delivered more than 80 percent of the city’s power from a hydroelectric dam about 40 miles south.

Until repairs are completed, possibly by late June, the city’s private electric utility will depend almost exclusively on diesel fuel. Hydropower is one of the cheapest and cleanest power sources, while diesel, at around $4 a gallon, is one of the most expensive and dirtiest.

With the first bills based on the increased rate scheduled to be sent out this week, fear is in the air. So is the laundry. Dryers eat up watts, and local stores ran out of clothespins because so many people started hanging their laundry outside. Never mind that it rains 220 days of the year and rarely gets truly warm here amid the fjords and forests of the Inside Passage.

The new rate is about 53 cents per kilowatt-hour, up from about 11 cents — around the national average — before the avalanche. The average residential bill before the avalanche was about $86 a month.

Comments

Please, Jay, don't give the gougers at BGE or their apologists shareholders any ideas!

Biff, fortunately we don't have avalanches, but I'm guessing that BGE is on the lookout for other natural disasters that take out part of the generating power! Let's see, flooding, crabs eating through power lines that run through the Chepaseake, maybe rock slides in Western Maryland (although that would probably be Allegheny Power), maybe a hurricane this summer...

Biff, fortunately we don't have avalanches, but I'm guessing that BGE is on the lookout for other natural disasters that take out part of the generating power! Let's see, flooding, crabs eating through power lines that run through the Chepaseake, maybe rock slides in Western Maryland (although that would probably be Allegheny Power), maybe a hurricane this summer...

I think I could live with a 400% increase in the event of unforseen circumstances, and they were only temporary (4-6 months max) like this increase seems to be in Juneau.

Paying 70+% more (and rising) over the long haul like we are is far more of a burden on my wallet.

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