Local News...
Have You Been Shocked?
Trina L.C. Sonnenberg
In 2005, the San Miguel Power Association [SMPA] urged the consumer/owners of the co-operative to vote to deregulate the power company. Their efforts met with success. San Miguel Power is no longer regulated by the Public Utilities Commission [PUC]. What exactly does that mean?
The purpose of deregulation is to promote competition; that is to say, it was meant to allow utility companies to be more competitive in regard to their rates and services. Being that SMPA has no competition here, why did they push so hard to deregulate? Their service area has no other electrical service option for consumers, except to self generate power.
While campaigning for deregulation, SMPA stressed that they would not raise our energy rates. They stated that rate control was not their motivation for deregulation. Then what was their motivation, does anyone remember? All I recall hearing was their insistence that rates would not increase.
When, the deregulation issue was put to a vote, the rate per KWH for electricity was .105203, which is basically, 10.5 cents per KWH. Following the passing of deregulation, (August - September 2005 billing) SMPA increased its rates to .106836 per KWH, which is edging toward 11 cents per KWH. Then, for the November - December, 2005, billing period, the rates went up to .116283 (close to 12 cents). Now, the rate they are charging for electricity is.121293 (13 cents). That comes to three increases, in rates, after they said they wouldn't do that. Rather than deregulating in the spirit of being more competitive, the deregulation served only to increase SMPA's profit margin. Do you feel cheated, or lied to?
Did you know that the national average rate for electricity is 8.14 cents per KWH? The Colorado state average is 7.64 cents per KWH. So, why are we paying close to 13 cents per KWH?
DMEA has listed its residential rates online. They are as follows:
Energy - 0 to 1400 kWh (1000 kWh in 2006) $0.09285
Energy - over 1400 kWh (1001 kWh in 2006) $0.07732
DMEA buys their electricity from Tri-State, just like SMPA does, so why are we paying so much more than DMEA customers?
Additionally, several people that I have been in contact with, noticed a major usage jump on their power bill, in the month of February, myself included. My usage went from a ten year average of 34 KWH per day to 64 KWH per day, for February. The issue here is not the rate I am paying, but the amount of power actually being used. I couldn't understand the jump, since I am actually using fewer electrical appliances than I have in the past. SMPA came to re-read my meter, and then replaced it because it was old. They tested the meter and declared it to be in working order; therefore, they had no explanation as to why my usage metered so high. At first, the cold was blamed as the culprit, but I heat my home with wood. Every excuse they came up with, I had an answer for, but since the meter checked out, I am sentenced to pay an electric bill I feel is not right. The stories I have heard from others, regarding their own recent increase in usage, is very similar to my own. No explanation.
Perhaps we, as a community of consumers, should discuss the re-regulation of SMPA. Obviously they seem to have taken self-regulation to the bank.
http://www.eia.doe.gov/cneaf/electricity/st_profiles/e_profiles_sum.html
http://www.eia.doe.gov/cneaf/electricity/epm/table5_6_a.html
http://www.eia.doe.gov/
http://tonto.eia.doe.gov/state/state_energy_profiles.cfm?sid=CO
http://energyfacts.blogspot.com/
Copyright © 2007
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About the Author:
Trina L.C. Sonnenberg
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Keywords: public utility, San Miguel Power Association, deregulation, utility rates
Dear Trina,
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