Brent Eubanks (![[info]](http://l-stat.livejournal.com/img/userinfo.gif){kind=small} a_steep_hill) wrote,@ 2008-06-26 09:15:00 |
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cost of energy
Between now and Jan 2009, PG&E will raise electricity prices by 6.5%. This is a perfectly unsurprising thing, given the increases in the cost of natural gas.
As far as I can tell, the rate that they can charge for electricity is more heavily regulated by the PUC than is the rate they can charge for gas. So it takes longer for the price of electricity to reflect increases in fuel costs, because the rate cases take a long time. But eventually the price signal does work it's way through to the consumer, which is a very good thing (I only wish it happened faster).
This is also some vindication for me personally: when I was selling solar PV, my financial payback models assumed an annual increase in electricity cost of 2-3%. Nice to know I was being conservative.
Between now and Jan 2009, PG&E will raise electricity prices by 6.5%. This is a perfectly unsurprising thing, given the increases in the cost of natural gas.
As far as I can tell, the rate that they can charge for electricity is more heavily regulated by the PUC than is the rate they can charge for gas. So it takes longer for the price of electricity to reflect increases in fuel costs, because the rate cases take a long time. But eventually the price signal does work it's way through to the consumer, which is a very good thing (I only wish it happened faster).
This is also some vindication for me personally: when I was selling solar PV, my financial payback models assumed an annual increase in electricity cost of 2-3%. Nice to know I was being conservative.
