Prior to launching into my column, I want to focus on two major encouraging occurrences. With all of the negatives emanating from the District of Corruption, my belief in the goodness and wholesomeness of the majority of American citizens was bolstered. First, I wish to congratulate Ted Cruz on his stunning and magnificent Primary Election victory in Texas.
Now, let’s address the mundane world of utility rate increases. How many people have ever attended a utility rate increase hearing? The intention of this column is to encourage a ‘Chick-fil-A-like’ turnout for all utility rate increase hearings across the country.
I attended my first utility rate increase hearing this week, and I don’t know how utility rate increases are handled in each state, so you will need to research how such requests are handled within your own state. I realize many people believe the increase request process is rigged. A utility identifies an amount that it wants as an increase, it request an amount that is on steroids, and the commission ‘reviews’ the request. Following the review, the commission whacks the rate of increase to an ‘acceptable’ amount and everyone is supposed to be satisfied. This may sound cynical, but haven’t you felt the same way on this issue? Is that why you haven’t attended a utility rate increase hearing?
Attorneys and consumers threw out a lot of numbers at the hearing, so I’ll do my best to present what I absorbed from the various questions, responses and comments throughout the evening. In the state of Kansas, we have a group of five individuals who comprise a Citizens’ Utility Ratepayer Board (CURB). CURB has a whopping $250,000.00 annual budget to battle the legal phalanxes of the utility titans that are afforded ‘monopoly’ status, in exchange for efficiency and reasonable rates. Having been a resident of Lawrence, KS while in college and the Kansas City metro area for the rest of my life, with the exception of thirty-two months, I appreciate having reliable and reasonably priced utilities. This is a benefit of living in flyover country.
What I have issues with crystallized from comments made by attorneys and many consumers of all income levels and environmental beliefs. The rate of increase being requested for electricity generated by KCPL for an ‘average’ residential consumer is 12.9%; other segments of utility users will see other rates of increases. Let’s see why KCPL is asking for an additional $63.5 million in fees.
A portion of the increase is in response to EPA and state dictates, but it doesn’t appear to address the Katrina-like increases to which we will be subjected, once the attack upon coal-fired power plants becomes a full-blown reality. Approximately 70% of electricity generated by KCPL comes from coal, so those served by KCPL better gird their loins as the EPA purloins the purchasing power of KCPL customers by ramming its damning agenda upon us.
Using the 12.9% increase ‘request,’ this is just the base rate of the increase. When the base rate increases, the amount of taxes paid by customers will increase proportionally. All government entities (cities, counties, state and Federal) will also see their rates increase as well, so taxes will go up, services will be reduced, we get sandwiched by both of these realities, or, in the case of the Federal government, we continue to add to our unsustainable debt. I understand up to 40% of electrical consumption is attributable to manufacturing. Think of all of the manufactured items you purchase, and you’ll understand that your costs will, ‘necessarily, skyrocket’ for these goods as we move ‘forward!’
One of the attendees noted that her AT&T rates just increased 17%, and Kansas Gas Service has a rate increase hearing on August 22nd, asking for a 9.1% increase. Several parties mentioned different numbers regarding recent KCPL rate increases, but the one that I wrote down is that in the past six years, there have been four rate increases granted to KCPL, for a total increase of 46%. To paraphrase a quote attributed to Everett Dirksen, ‘12.9% here, 17% there and 9.1% there, and, pretty soon, you’re talking real money.’ When rate hikes are in response to government interference, these rate hikes are actually taxes imposed through a utility. Are any of these increases/taxes included in the rate of inflation reported by the government? Hasn’t the government denied a Cost of Living Adjustment (COLA) increase for Social Security recipients a couple of times in the past several years due to the low rate of inflation? If not, and if so, respectively to these questions, isn’t it easy to see why those living on Social Insecurity or a fixed income are insecure?
Included within the request are monies for healthcare and pensions. Most thoughtful individuals don’t begrudge people having benefits at their job, but how much of the healthcare costs being passed onto the consumer are attributable to DictatorCare? Regarding pensions, how much of the requested increase is due to the government-induced economic implosion of 2008 and purposely-suppressed economy at the hands of the Lying King and his confederates? Many people are thriving in spite of our scandalously tepid economy, but many more individuals and families are victims of the ‘idiotology’ of this confederacy. Utilities appear to be related to the government genus, in which employees are insulated from the reality under which many of those who pay their salaries, benefits and bonuses live and labor.
Additionally, the utility is seeking a 10%+ return for its investors. Understanding the self-interests all of us tend to pursue, in today’s schizophrenic economy, doesn’t this portion of the increase request appear to be a bit bold?
Regarding electricity generation, Kansas is a natural market to pursue wind-generated energy, but this needs to be as a supplement to coal, gas and oil generated energy, not as a replacement. Wind-generated energy can cost four times as much to produce as coal-generated energy, but economy is not the only component of the energy equation. Coal-generated plants can operate at approximately 80-85% capacity, while wind-generated energy can hover at approximately 40% capacity. Also, depending upon the size of the turbine, it is only operable when the wind reaches 12 mph and remains under 25 mph. These two factors don’t bode well for reliable or economical energy. Doesn’t it appear that we are going in the polar-opposite direction of what is in the best interests of the consumer and our decaying economy? Aren’t we pursuing goals that place us on a path towards an ‘India-like blackout’ possibility?
Thank God, an engineer addressed the two-fold aspect of electricity generation, static generation for minimal, baseline use, and spike generation capability to meet the peak needs of consumers. Most ‘environmentalists’ are clueless to these realities, and/or are heartless in forcing an agenda that places ‘idiotology’ over human beings. As more of our gadgets demand electricity, and with the natural resources blessings with which we have been blessed, shouldn’t we be pursuing an agenda of responsible, reliable and economical energy generation, not an un-American, collectivist agenda?
We were also told that, as a utility, it could design rates to discourage public use of electricity. Isn’t that grand - we are serfs to a monopoly that can dictate assumed electrical usage needs, without regard for an individual’s specific needs. Is this America, or Amerika? Is it any wonder why most people are resistant to dumb ‘smart meters?’ Also mentioned and acknowledged for the record, as people conserve their use of electricity, there can be a corresponding increase in the rate per unit charged to offset the utilities ‘loss’ of revenue. I wonder if the green wing nuts understand this reality and its impact upon citizen/ratepayers when they project their ‘idiotology’ upon the rest of our society?
Not addressed is the fact that, in addition to the dictates of the EPA that will cripple our energy production, reliability and economy, is the continued encroachment of U. N. Agenda 21 within all levels of government and our energy producing industries. If not abated, even more ‘discretionary income’ will re-distributed to non-discretionary costs that will severely impact those least able to cope with the ever increasing costs dictated, not by supply and demand, but by energy terrorists within our government. This current reality drives me to wonder how many people will die because they can’t absorb the purposeful raiding of one’s finances to bring the masses into compliance with the whims of the unenlightened despots atop our government, even leading to suicides as people lose more than money, they lose their self-esteem?
As big of a letdown as these concerns are, the events mentioned at the outset of this column encourage me to believe that, as consumers who fund the salaries, benefits and bonuses for those employed by a utility, we can have an impact upon the consistent encroachment of utility rate hikes. Not all of the heels are inside the District of Corruption. In fact, the person who is the Consumer Counsel for CURB exhorted attendees to show up and speak up at all utility rate increase hearings because we can have an impact upon the subjective decision of the commission when they consider what amount of an increase request, if any, should be granted to a utility. I encourage people to take responsibility for attending and speaking out at utility rate increase hearings, demanding the commission and the utility seeking a rate increase to act in the best interests of their respective constituencies and customers. It is our right to do so!
