A fee for using less energy?

JEFFERSON CITY, Mo. - Some Missouri residents and businesses could soon see a new charge on their electric bills - a fee for using less energy.

Though it might seem illogical, the new energy efficiency charge has support from utilities, most lawmakers, the governor, environmentalists and even the state's official utility consumer advocate. The charge covers the cost of utilities' efforts to promote energy-efficiency and cut power use.

The assumption is that charging consumers for those initiatives ultimately will cost less than charging them to build the new power plants that will be needed if electricity use isn't curtailed.

Legislation pending before Gov. Jay Nixon would set the criteria for state utility regulators to approve the energy-savings charges. If he signs the bill, the new law would take effect Aug. 28.

"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.

Kansas City Power & Light Co. already has 19 energy-efficiency and demand-reduction programs, said Chuck Caisley, the company's senior director of public affairs. He said the PSC is allowing the company to recoup up to $50 million of the programs' costs under a rate plan in effect through 2010.

One of the company's more popular energy-saving initiatives has provided free programmable thermostats to about 34,000 residential customers in Missouri and Kansas. KCP&L can remotely control the devices to reduce the frequency at which air conditioners run during peak demand times.

KCP&L was among the leading advocates for the Missouri legislation.

The legislation applies to KCP&L, AmerenUE and The Empire District Electric Co., the publicly traded utilities that serve nearly three-fourths of the state's population.

The U.S. Environmental Protection Agency estimates that energy-saving programs offered by utilities will add about 3 percent to the average electricity rates. But it says customers who participate in the programs could save 10 percent to 20 percent on their energy bills.

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rk92559 says...

Lol...All I can say is HUH??? This explanation sounds like listening to a politician talk for an hour and still not know what he said...but somehow , even though they told you how great life is...you will still get screwed. You will save 10 percent on your bill, but will be charged more for doing so...sooooo..what exactly have you gained?? it is like when gas was 1.00 a gallon then went up to 2.00 a gallon, then they lowered it to 1.50 and everyone was happy as heck....to pay 50 cents more a gallon. And the cash for clunkers program, the government pays 3,500 for a gas guzzler while another person at the same time drives off the lot with a new one that gets worse milage.

The only 'Inconvienient Truth" is they can shaft you and explain it in terms you will never understand. Al Gore, your an idiot.

July 6, 2009 at 2:02 a.m. ( | suggest removal )

bigbob says...

Good grief, we just read that the city wants to change all the traffic lights to low energy LED's. And now KCP&L wants to charge them a fee for saving that much power? This can't be right.

July 6, 2009 at 5:43 a.m. ( | suggest removal )

pisces0223 says...

This is going to backfire. It's another charge the high profit making utility is going to put into the big guys' bonuses. I will up my usage rather than see it go into their already overflowing pockets. We should be getting a discount!!

July 6, 2009 at 7:34 a.m. ( | suggest removal )

77cod says...

LET'S SEE WE CONSERVE WE GET HIT WITH A FEE, WE USE AND THEY NEED TO BUILD WE GET CHARGED A FEE. ARE WE STUPID ? WE GET IT NO MATTER WHAT THEY OR WE DO AND THEY REPRESENT US? I HOPE ALL VOTERS ARE KEEPING TRACK AND GET IT RIGHT AT THE NEXT ELECTION. WE HAVE NO REPRESENTATION JUST THOSE ELECTED THAT WANT TO BE THE HERO OR ARE LINING THEIR POCKETS FOR AFTER OFFICE LIFE. AMERICA WE ARE IN A MESS. MAYBE WE SHOULD BE IN THE STREETS LIKE IRAN?

July 6, 2009 at 8:25 a.m. ( | suggest removal )

younggrandma says...

Sounds like the utilities, most lawmakers, the governor, environmentalists and even the state's official utility consumer advocate think we are stupid. Taxing and "fee's" are not going to stop until every dime we make is gone.

July 6, 2009 at 8:37 a.m. ( | suggest removal )

rkcubed says...

Sounds counter productive to me. If I get charged more to use less then I will use more. More bang for the buck!

July 6, 2009 at 8:40 a.m. ( | suggest removal )

thisoleman says...

and remember, this is in addition to the 11.85% they are raising rates here in a couple months.

July 6, 2009 at 9:09 a.m. ( | suggest removal )

TheShadow says...

The article is a little confusing, you are going to pay this fee no matter how much energy you use at your home. But the good news is they will give you a free thermostat that they the utility company can control in case you use too much. Sounds like a great plan.

July 6, 2009 at 9:26 a.m. ( | suggest removal )

rick says...

Life is good for a utility executive.
They make money no matter what.

July 6, 2009 at 10:14 a.m. ( | suggest removal )

TDubb says...

A fee for not using energy? it's like a bank charging for the customer not having any money

July 6, 2009 at 11:31 a.m. ( | suggest removal )

graphicphotobug says...

and so it begins . . . got your government issued light bulbs yet st. joe?

July 6, 2009 at 11:47 a.m. ( | suggest removal )

rk92559 says...

The lightbulbs are a good point. Awhile back I read a rant from a senator from Texas on the new mandatory energy saving bulbs replacing all bulbs. They are all made in China..exclusively.

July 6, 2009 at 1:10 p.m. ( | suggest removal )

goobentrot says...

And why do they make all of those bulbs in China? Because our government has made it too expensive to do it here.

July 6, 2009 at 1:15 p.m. ( | suggest removal )

patclem says...

The truth!!
....The customer is already being charged for energy reduction through the "dues" they pay to the Coop's & Utility's. A program was started called "take control and save", but it only covered half of the audit costs, therefor the money collected for this effort is just sitting there doing nothing but serving as a slush fund.
....Now this new charge of 3% will pay for the other half of the audit. I would think this is a good thing but the whole process just so disjointed and chopped up that no-one can follow the money.

July 6, 2009 at 1:44 p.m. ( | suggest removal )

saved1112 says...

Sigh... hope the big wigs appreciate the nice cars, houses, suits, vacations, dinners, business meetings that we'll all be paying for! Sheesh!

July 6, 2009 at 9:47 p.m. ( | suggest removal )

donaldo says...

it,s good to be american, we can bitch about higher rates and tax,s. and no one will come into the night and drag you off to a grave! doesent do any good to bitch anyway.but we have the right if we want to.enjoy, someday it wont be that way either.

July 6, 2009 at 11:42 p.m. ( | suggest removal )

Azure says...

Looks like we're constantly down sizing our life styles
to make things 'better', so our lives end up harder,
while the bigwigs are still living in the big houses,
driving the big cars and burning all the electricity with
all their big toys. And we are left in the dark with all the bills. It sucks to be the average American.

July 7, 2009 at 12:13 a.m. ( | suggest removal )

chikbrite says...

What's the truth in this article? I'm not sure we get the truth any longer (or did we ever?) and I believe it's happening because of not necessarily our government{s}, et al, but those groups who have even more control. Groups like the Bildeburgers, Skull and Bones, etc., to name a couple. To my understanding these groups (organizations), or the like, go back into antiquity. What's happening to the consumer today isn't much different from before, just on a bigger scale. What needs to happen is we, the people, need to change what we are all about and it can't be just a few here and few there, it has to be en masse.

July 8, 2009 at 8:53 a.m. ( | suggest removal )