Hungry, Hungry Power Grid
The New York Times is reporting that a poorly updated national grid of interstate electrical transmission lines are causing energy prices to skyrocket. The author wants us to believe that for customers east of the Rocky Mountains, the apocalypse is upon electricity users.
Indeed, the price per customer is expected to jump $40, and in some cases more as customers aren't each receiving a fair distribution of the rate increases. But this isn't a bad thing. The United States has enjoy a long period of cheap energy prices, be it gasoline for cars or electricity for homes and businesses. While cheap electricity might keep factories humming, it also reduces the incentive to conserve energy.
Cheap electricity keeps electric companies from expanding services and upgrading facilities because there is little incentive for them to invest in new plants. So then places like California endure rolling blackouts. Or New York City's power grid blows up on hot summer days.
Meanwhile, customers with cheap electricity make little effort to save energy when the price per kilowatt keeps the bill about the same no matter how much they use. But raise the price of electricity, and using energy efficient appliances and light bulbs begins to add up. For example, compact fluorescent bulbs running at twenty watts produce the same amount of luminosity as incandescent bulbs using three times as much power. But now with the price of electricity artificially low, there is little incentive for the consumer to replace cheap incandescent bulbs will more efficient but more expensive compact fluorescents.
Furthermore, most customers don't think twice about electricty leaks-- the slow sucking of power by appliances that for all purposes appear as if they are off. However, if the price of electricity increases dramatically, customers will be encouraged by their bottom line to seek out energy efficient appliances that don't waste electricty.
At the end of the day, the cost of producing goods might go up if electricity prices rise. But America builds ideas, not things. Customers, particularly those with low or fixed incomes, might see the rise in electric prices hurting thier pocket books. Yet the average customer can make very small changes in their lifestyles-- compact flourescent bulbs, energy efficient appliances, and ensuring power sapping devices are turned off-- that add up to huge savings when millions of people across the country begin making the switch. Everyone agrees that energy conservation is a good idea, but no one agrees they should be the ones to do the conserving. Highery energy prices will help people make the decision they know they should be making anyway.
Indeed, the price per customer is expected to jump $40, and in some cases more as customers aren't each receiving a fair distribution of the rate increases. But this isn't a bad thing. The United States has enjoy a long period of cheap energy prices, be it gasoline for cars or electricity for homes and businesses. While cheap electricity might keep factories humming, it also reduces the incentive to conserve energy.
Cheap electricity keeps electric companies from expanding services and upgrading facilities because there is little incentive for them to invest in new plants. So then places like California endure rolling blackouts. Or New York City's power grid blows up on hot summer days.
Meanwhile, customers with cheap electricity make little effort to save energy when the price per kilowatt keeps the bill about the same no matter how much they use. But raise the price of electricity, and using energy efficient appliances and light bulbs begins to add up. For example, compact fluorescent bulbs running at twenty watts produce the same amount of luminosity as incandescent bulbs using three times as much power. But now with the price of electricity artificially low, there is little incentive for the consumer to replace cheap incandescent bulbs will more efficient but more expensive compact fluorescents.
Furthermore, most customers don't think twice about electricty leaks-- the slow sucking of power by appliances that for all purposes appear as if they are off. However, if the price of electricity increases dramatically, customers will be encouraged by their bottom line to seek out energy efficient appliances that don't waste electricty.
At the end of the day, the cost of producing goods might go up if electricity prices rise. But America builds ideas, not things. Customers, particularly those with low or fixed incomes, might see the rise in electric prices hurting thier pocket books. Yet the average customer can make very small changes in their lifestyles-- compact flourescent bulbs, energy efficient appliances, and ensuring power sapping devices are turned off-- that add up to huge savings when millions of people across the country begin making the switch. Everyone agrees that energy conservation is a good idea, but no one agrees they should be the ones to do the conserving. Highery energy prices will help people make the decision they know they should be making anyway.
Labels: Consumerism, Technology
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