Missouri To Charge A Fee For Using Less Energy

[trane]

Yes you read it right. The following I am having trouble understanding. If they use less what would be the costs and why a need to increase rates?

For example, the commission last week approved a program in which St. Louis-based AmerenUE can offer credits to businesses that voluntarily shut down or scale back their electricity use during peak demand. AmerenUE will be able to recoup the cost for the program that starts Thursday by increasing the rates it charges business customers.

http://www.kansascity.com/news/politics/story/1307200.html

[mrs reb77]

Your answer:
“To save power is the equivalent of making power,” Nixon said, “and it’s a pretty seismic shift” in Missouri’s energy strategy.

Usually, regulators allow utilities to recoup the cost of building power plants or buying more power to meet customer demand. Recently, the Missouri Public Service Commission began allowing some utilities to pass along to customers the cost of programs that reduce demand for electricity.

For example, the commission last week approved a program in which St. Louis-based AmerenUE can offer credits to businesses that voluntarily shut down or scale back their electricity use during peak demand. AmerenUE will be able to recoup the cost for the program that starts Thursday by increasing the rates it charges business customers.

So, in order to not charge some companies for NOT using electricity some OTHER companies will be charged more.

Use less and shift the burden of the status quo onto someone else.

[trane]

Your answer:
“To save power is the equivalent of making power,” Nixon said, “and it’s a pretty seismic shift” in Missouri’s energy strategy.

Usually, regulators allow utilities to recoup the cost of building power plants or buying more power to meet customer demand. Recently, the Missouri Public Service Commission began allowing some utilities to pass along to customers the cost of programs that reduce demand for electricity.

For example, the commission last week approved a program in which St. Louis-based AmerenUE can offer credits to businesses that voluntarily shut down or scale back their electricity use during peak demand. AmerenUE will be able to recoup the cost for the program that starts Thursday by increasing the rates it charges business customers.

So, in order to not charge some companies for NOT using electricity some OTHER companies will be charged more.

Use less and shift the burden of the status quo onto someone else.

AmerenUE will increase rates it charges to business customers to allow them to recoup costs of a program that offers credits to businesses that voluntarily shut down or scale back their electricity use during peak demand.
:)

[tunnel_rat]

Makes about as much sense as anything else comming from gov't lately. As long as people sit by and let them run all over them, they will continue to do so. Why wouldn't they????

[mrs reb77]

And, unfortunately, we are stuck with them as our power supplier.