State-sponsored monopoly utilities, as coined by the Gulf States Renewable Energy Industry Association (GSREIA) have exposed their ‘solarcism’ in recent weeks. GSREIA has accused them of being “ignorant” and “misleading” when it comes to solar energy. The nonprofit wants to keep the utilities honest and is publicly clarifying some misconceptions. At issue is the frequency that monopoly utility supporters confuse Louisiana’s low electricity rates with customer electricity bills.
“It’s embarrassing that groups funded by large utilities could be so confused on the basic facts on electricity,” said Jeff Cantin, president of GSREIA. “If low rates meant low bills, Louisiana’s utilities would never have to explain to the media and regulators why customers suffer from high bills every summer and every winter.”
Cantin offers an example. Assume gasoline costs $2 a gallon. If a Prius owner fills up that car’s 11-gallon gasoline tank, the gasoline bill will be $22. If a Suburban owner fills up that SUV’s 31-gallon gasoline tank, the gasoline bill will be $62. Obviously the Suburban owner’s bill is going to be much higher. And clearly, the low price of gas per gallon doesn’t mean the bill will be cheap. The same principle applies to electric bills.
While Louisiana’s residential rates are relatively cheap at about 9.4 cents per kWh, actual bills depend on how many kWh customers actually use. According to the latest information from the Energy Information Administration, Louisiana’s average residential electric bill was $119.98 in 2013. Residents in 36 states paid lower average bills, meaning Louisiana had the 14th most expensive average utility bills in the nation.
Although every Louisiana utility customer’s bill clearly explains that the number of kWh used defines the size of the monthly bill, GSREIA hopes the state-sponsored monopoly mouthpieces are making honest mistakes instead of purposefully misleading the public.