Archived

This topic is now archived and is closed to further replies.

ARSEN

State approves Duke Power rates hike

27 posts in this topic

That's the kind of stuff we also have to plan for...and good job ignoring the stuff other than the "bad decisions" - the main one, Crystal River, was due to the owner trying in part to keep costs down for customers so there you go

Share this post


Link to post
Share on other sites

When customers get more self generation they will still want power when it's dark, cloudy, no wind, etc but not understand that it's less efficient for us to ramp up and down wildly instead of more controlled and predictable use cycles therefore more expensive

Share this post


Link to post
Share on other sites

If I had a car since 1930 that I knew I was going to have to replace at some point, I have to make financial decisions to prepare for the replacement.

 

While Duke Power had three years of decreased earnings from 2007-2009, the fact remains that 2011 earnings are well in excess of 25% over 2007, so they've more than made up for those 3 down years.

 

The reality of utility companies is they are incredible investments for anyone. One of the reasons they are such a good investment is because they are very good at convincing state utility commissions they are in need. Always in need. To the layperson like myself, the common occurrence of utility rate hike requests in the news simply tells me they either suck at money management or they're full of poo. The latter obviously being the truth. 

 

In this economy, any company that can post double-digit earnings increases is doing very well. But to then say it's not enough and they need more in the form of rate hikes is crap; to make up for things like an 80-year old power generation facility that the company should have planned for 40 years ago.

 

Duke Power $1.8B profit in 2011 paid no federal income taxes in 2012 and actually received a $46M rebate.

http://obsearthenergy.blogspot.com/2013/04/duke-energy-paid-no-federal-income.html

 

 

But they need another 4.5% rate hike.

 

 

Share this post


Link to post
Share on other sites

If I had a car since 1930 that I knew I was going to have to replace at some point, I have to make financial decisions to prepare for the replacement.

 

 

Hard to do when you're a regulated utility being told how much you can charge.

 

Regulated markets have kept energy prices artificially low for years, preventing utilities from being able to set aside enough money to build new generation facilities. Instead they dump the money into extending the lifespan of old and inefficient plants until they can no longer. 

 

That's what we're facing now.

 

Coal is far more expensive than it used to be. Energy companies simply could not afford to keep running 30% efficiency plants. Combine that with environmental regulations and plummeting gas costs and it became time to convert coal plants to gas or replace them entirely.

 

This costs billions of dollars.

 

The reality is we should have been paying more for energy for quite some time.

 

I'm not saying Duke is blameless though, just that there are a number of factors that impact energy rates.

Share this post


Link to post
Share on other sites

That's a more reasonable assessment. No one was complaining when Duke had about the lowest prices in the nation for power (and still does). We held out as long as possible.

 

New plants are insanely expensive to build, nuclear is stalled, governments are demanding that certain percentages of power come from alternative sources, industrial demand is still weak....but the lights have to stay on.

 

Public Utilities are good solid low yield, long term investments. They are not "incredible investments".

Share this post


Link to post
Share on other sites

The "liberals" need to be a little careful in this thread.

 

Anyone know how much a "scrubber" cost for coal plants?

 

How about how expensive to build a new nuclear plant is?

 

A lot more goes into the energy business than just flipping a switch and 90 megawatts starts spreading itself out.

Share this post


Link to post
Share on other sites