NetNews Usenet Archive 1992 #31/NN_1992_31.iso/spool/misc/consumer/house/16091

Internet Message Format | 1992-12-24 | 1.7 KB

Path: sparky!uunet!cis.ohio-state.edu!udecc.engr.udayton.edu!blackbird.afit.af.mil!falcon.aamrl.wpafb.af.mil!jberlin
From: [e-mail]
Newsgroups: misc.consumers.house
Subject: Re: energy saving rebates
Message-ID: <[e-mail]>
Date: 24 Dec 92 08:22:18 EST
References: <[e-mail]> <[e-mail]> <[e-mail]> <[e-mail]>
Organization: USAF AL/CFH, WPAFB, Dayton, OH
Lines: 26

>>>Philip Barr <[e-mail]> writes:
>>>
>>>yes, but.... where is the economy for the utility company that gives
>>>cash rebates for appliances (ie. refrigerators) that use LESS energy
>>>instead of more energy?  in other words, why would the utility pay
>>>me to use less energy?  what's in it for them?


   Utilities are a regulated monopoly, they are pretty much guaranteed to
make money on regular operations, thus rates can and will go up.  However,
if more generating capacity is needed, they will have to enter a risky
undertaking, namely construction, permits, environmental impact studies,
siting studies -- a sinkhole for cash.  In many cases this can stretch out
over ten years or so, and they often are not permitted to reflect this
cost in their rates until the generating plant is on line.  Meanwhile the
interest meter is running on all that cash.  Along with some possible
tax incentives, it makes more sense to reduce usage and avoid construction
expenses.
--

  Jim Berlin

"The opinions and views expressed here are strictly my own and do not
necessarily reflect the official position of either the U.S. Air Force
or its contractors."