Why is it when the Economy Hits Tough Times, the Economics Get Harder to Understand

Hogansville, Georgia -- Economic hard times are hitting everywhere, in hometown USA. Under the deceptive lull in the rise of gasoline prices, indeed fuel prices are currently down, but food prices have continued their climb, hitting consumers in the pockets where it hurts. With money tight, and when every penny counts consumers have started looking more closely at those monthly statements when they arrive in the mail. There is not much we can do, as we take note of the additional fees tacked on to our basic utilities, cell phone bills, and bank accounts, here and there every time we turn around. Usage fees, data fees, state and local fees, surcharges, and every other name they can think of, to add on to our burden.We can question them, we can protest them, but in the end , we have to pay them.

This year I was very much looking forward to a reduction in our electric bill. We are empty nesters now, and expected significant reductions. I was disappointed over the summer when there was no decrease, actually a slight increase for a couple of the months. When I called to discuss how could this possibly be correct, we are using way less kilowatts with just the two of us, I was told that there was rate increase that took place. This 20+ percent, per kilowatt charge effectively eliminated any savings we may have expected in general.

Depending on where you live, you will notice seasonal rate changes for your electricity twice a year. I live down south, our rate decreases after October 18th, when air conditioning season has passed. Again, my husband and I anticipated October 18th, historically our electric bill drops down to half, when we enter winter here in the south. Where we paid anywhere from $280- $350 dollars through the summer, we could expect to see a drop to a much more reasonable $150.00 per month. Taking the increase into account, basing only on historical savings overall, we were expecting a pretty decent decrease from the summer months that it had been such a struggle to pay. In November the bill was a welcome relief, coming in at $123.00. Sigh, relief. Short lived.

When December came it had climbed past $200 again. Granted we had a cold snap, but no more so than any other year. Could we have run the heat that much? We didn't think so. But wait, look closely at the bill, what is this $48.00 power cost adjustment? Oh another of those little hidden " Additional Fees", you know the ones you can question, but in the end you pay. I thought, " Maybe it's a one time thing", and I let it go. January's bill has arrived, it too is well over $200.00, it too has a power cost adjustment charge. This time $40.20. This time I called.

What is this "Power cost adjustment, that has taken away the savings that can generally be counted upon by the consumer? The Electric Company has very nicely explained to me. It is because they "underestimated". You see our power plant says they buy their power from an outside source. Supposedly by estimating in advance they get " Us a better rate". If they underestimate though (And mind you this is for the season, not per month), the kilowatt rate increase is passed on to guess who? The consumer. Somehow, they have so "underestimated", that we failed to make it through one full month of the season, before they are already hitting us with these Power Adjustment Costs here in Mid West Georgia. Even the very low October bill had a $13.00 power cost adjustment in there that I overlooked. I have lived in the same location, and have had the same power company for over ten years now, and I have NEVER seen a power cost adjustment on my bill that made a noticeable increase until this year. In February, March , the end of the season, you may occasionally see .50 cents, .90 , a really cold year maybe a whole dollar once in a while, But this reeks of intentional. Winter has just begun, and they are that far off?

We are at the start of the season, with no choice but to pay the additional almost $50.00 per month, per household in our area. For The Entire Season ahead. Combined with the rate increase, and the Power companies estimates, consumers are again forced to deal with the pinch. How could they possibly have underestimated to such an extent? According to the Statistics of the US Department of energy " A typical U.S. Household consumes about 10,000 kWh per year, costing an average of $830.00 yearly" . If that is accurate then that would mean at a rate of $50.00 per month in fees, just because they underestimated, the consumer will in effect pay almost fifty percent more for such a basic need as electric service. their reported estimates do not reflect actual consumer costs. We pay on average to the electric company over $3,000.00 per year. Why are the rates in our area so high compared with the examples given by the U.S. Department of Energy in Diverse Power's own monthly newsletter? Who is that regulates these companies to protect the consumer?