“Learning is what most adults will do for a living in the 21st century.”
- Lewis Perelman
Let’s get right into the meat of today’s post…
Alabama Power Co. has asked the Public Service Commission to raise rates for residential customers by more than 14%.
…A company spokesman says the proposed increase of 14.6% would mean an extra $16.45 for a residential customer who uses 1,000 kilowatt hours per month.
- From “Alabama Power asks PSC for 14.6% rate hike”
- WTVM - 26 August 2008
There you have it… or do you?
First of all, just how many rate hikes has this been in just the last year or two? Well, we weren’t able to find a definitive answer to that on the web but we do know that there has been at least two from our own archives here at Sin City:
Stuck holding the bill… again
20 June 2007Merry Christmas from Alabama Power
3 December 2007
The issue is, of course, the cost of the energy that is required to make energy. And like everything else, it is the consumer who is expected to bear the entire weight of it. This is why we have repeatedly said that the consumer IS the most important cog in the free market machine. Regardless of how good or how bad the economy, it is always the average Joe who holds the whole contraption together.
So, what does this new jack in the price of electricity going to mean to you? Well, let’s not even pretend that it won’t be approved by Alabama’s spring-loaded rubberstamp Public Service Commission… although you should note that they will be holding the obligatory hearing on September 23rd.
We’ll include information for this public display at the end of this post.
According to Alabama Power (noted from a number of websites)… the rate jack will cost the consumer over $16 a month for 1000 kilowatt hours (KWH) of usage. This in itself sounds rather benign but… you can get the same kind of fully manipulated disinformation on a doggone candy bar when looking for fat content.
You first have to understand exactly what proportions are being measured and then, how that relates to you. For instance, that candy bar may say that there is only 2 grams of fat per .5 ounces but the candy bar itself weighs in at 2.5 ounces. Follow? Good.
Now in this case, just how much is that 1000-kilowatt hours figure to you and what you may use during an average month? In the graphic below there are two real household bills being measure against that 14.6 percent rate hike…

The first is from a single-family home that used 3579 KWH over a billing period of 30 days. The proposed rate hike would jack their power bill by about $50!
The second is for a simple singlewide mobile home, inhabited by two retirees who do not own a computer or a large TV or any other modern energy eater. They used 1954 KWH over a 28-day billing cycle. The proposed rate hike would mean about $30 even to them!
Alabama Power fronts-up the 1000 KWH - $16 figure like that candy bar’s content listing was designed to make it look less fattening.
Here’s one final figure. When added to the last two rate hikes, the new proposed jack would make the total increase for the last 18 months go to a hefty 26.35 percent!
Things are tough all over but enough is enough. The Alabama PSC needs to actually earn their paycheck here by serving the public or be dissolved as a waste of taxpayer dollars.
References –
- Alabama Public Service Commission Main
- Alabama Power Rate Increase Hearing page
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Imagine if you will, going to any of our American theaters to find the odor of a zombiefied Victorian intolerance instead of the beloved smell and taste of hot popcorn! Talk about a reason to revolt!
You’ve heard of hybrids, electric cars and vehicles that can run on vegetable oil. But of all the contenders in the quest to produce the ultimate fuel-efficient car, this could be the first one to let you say, “fill it up with air.”
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