Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
No it isn’t crazy ..because con ed buys electricity off the grid the costs of that power is in the delivery charges … the 400% rise in natural gas is not in the electricity prices since most of the power is bought from others and delivered via con Ed’s network.
It is just a crazy billing structure since you would expect in the electricity costs the fuel costs but that is not where bought power from the grid is accounted for
But that rate hike is not the delivery charges, rather the cost of electricity only. It means that they are telling us they are now buying electricity with a 200% uptick...
But that rate hike is not the delivery charges, rather the cost of electricity only. It means that they are telling us they are now buying electricity with a 200% uptick...
The cost of electricity barely went up …the fuel costs were put in delivery …look at your bill..
It is because of how con ed locks in its prices with futures contracts ..
They are not allowed to make a profit on the electricity itself …..so all the costs of these contracts to keep generation costs lower are on the delivery side .those contracts have become hundreds of percent more expensive
The cost of electricity barely went up …the fuel costs were put in delivery …look at your bill..
It is because of how con ed locks in its prices with futures contracts ..
They are not allowed to make a profit on the electricity itself …..so all the costs of these contracts to keep generation costs lower are on the delivery side .those contracts have become hundreds of percent more expensive
But no, I am talking about the electricity supply charges.
This is what I had in Jan:
Supply 365 kWh @6.4181c/kWH = $22.72.
And now in Feb:
Supply 386 kWh @19.0959c/kWH = $73.71.
The consumption only went up by 5.75% but the nominal supply price, for electricity, not gas, went up by 297% so of course, it creates a price hike that is crazy. Every article talks about gas but unless they can correlate that gas price hike to the electricity price, something is off for me.
The cost of electricity barely went up …the fuel costs were put in delivery …look at your bill..
It is because of how con ed locks in its prices with futures contracts ..
They are not allowed to make a profit on the electricity itself …..so all the costs of these contracts to keep generation costs lower are on the delivery side .those contracts have become hundreds of percent more expensive
I am talking about the electricity supply charges.
This is what I had in Jan:
Supply 365 kWh @6.4181c/kWH = $22.72.
And now in Feb:
Supply 386 kWh @19.0959c/kWH = $73.71.
The consumption only went up by 5.75% but the nominal supply price, for electricity, not gas, went up by 297% so of course, it creates a price hike that is crazy. Every article talks about gas but unless they can correlate that gas price hike to the electricity price, something is off for me.
They mention this in the article too:
"Take Lewis’ bill: the delivery charge went up about a penny per kilowatt-hour of energy use in this recent billing period compared to last, but the supply charge increased threefold, from 6.6 cents per kilowatt-hour to 19.6 cents."
"So it’s not all Con Ed’s fault: the company doesn’t set the energy prices and the company is by law not allowed to make a profit selling electricity."
Fine, but someone raised the supply price and now it would be interesting to understand how that can go up by 300%.
Natural gas is up 400% and oil doubled ..what else is there to know..
The cost of power is artificially low because costly futures contracts kept those costs down .but the contracts costs sky rocketed …they cannot be accounted for on the supply side since con ed can only sell power at cost .
They have to account for those costly contracts on the delivery side.
No different than cable tv in a way ..we all share the costs for getting that tv to you regardless of how much you watch it …the only difference is unless it’s a premium channel we don’t pay by the program too.
In this case actual electric hasn’t gone up much because the prices were kept lower buying futures contracts which can’t be charged evidently as cost of power itself.
It is like our owners of our building can’t raise rents because heat sky rocketed .so they offset costs raising parking spot costs which they can raise
Last edited by mathjak107; 02-14-2022 at 05:22 AM..
If natural gas is up 400% why did the cost per therm of natural gas go DOWN on the same bill electricity supply charges more than doubled?
Whatever the reason, electricity supply charges fluctuate too much month to month. Imagine buying gasoline in February at $3.50 a gallon and the next month it is $10 a gallon. No one would get away with that but Con Ed bills have so many charges most people don’t notice price swings unless they are extreme like this month.
I suspect that the natural gas market is being manipulated by traders. There is no natural gas shortage.
Depends on the prices they had locked in on their futures contracts ….i invested in natural gas and while I made 100% it soared overall by 400% from the lows .
It more than doubled over the last year
Actually we should have seen these increases way sooner but the contracts delayed it.
Once they expire is when you see the jumps …the longest go out a year.
Why diddle about components of your utility bill. What you pay is the TOTAL bill (including tax.)
So, IMHO, the only number worth comparing is the number on the check you have to write.
That was a very informative link from THE CITY, Mathjak.
I am pleased that I don't have to deal with Con-Ed. My only pain in the ass utility is Verizon.
Why diddle about components of your utility bill. What you pay is the TOTAL bill (including tax.)
So, IMHO, the only number worth comparing is the number on the check you have to write.
Ah, I had the simple thought that if I have to pay more because I used more power, it's hard to blame Con Ed for that. I mean, a single digit to low digit increase in the rates? Why not. This is a con level hike but I suppose we will just have to see what comes next now .
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
.
