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> pay wholesale price so that the poor who can't afford panels aren't subsidizing the rich The poor are already heavily subsidizing the rich for both electrici
by Panino 4y ago
> pay wholesale price so that the poor who can't afford panels aren't subsidizing the rich
The poor are already heavily subsidizing the rich for both electricity and water via base charges and fees. Imagine a poor household of 800sq ft with nighttime open windows for cooling vs. a 4500sq ft rich household with always-on AC. They're both paying the same base charges and fees, artificially lowering the cost-per-kWh of energy. While the rich household is using 10x more electricity, they're not paying 10x as much. So the poor are subsidizing the rich. The greater the base charges, the more money taken from the poor and given to the rich.
Moreover, this scheme financially disincentivizes usage reduction, as the savings on the bill don't properly track efforts made by the resident. You can (and should!) reduce your usage by 50%, but you won't save 50%.
So in short, base fees move money from the poor to the rich while financially disincentivizing reducing energy usage, thereby accelerating climate change.
We need to do the opposite by removing all base charges/fees and protecting net metering. We have to financially incentivize actions that allow us to have a future.
- rconti 4y ago> While the rich household is using 10x more electricity, they're not paying 10x as much. So the poor are subsidizing the rich. The greater the base charges, the more money taken from the poor and given to the rich. You're correct about base fees, but your conclusion is incorrect. PG&E power plans are tiered or at least have a baseline allowance. The baseline allowance gives you power that's roughly 8c/kWh cheaper, or about 20%. The more you use, the more of your usage is in the higher tier. It used to be a 4-tier system. The only way this 'hurts' poorer families is in, say, a multi-generational household where people are home and using appliances all day vs a smaller family where it's more likely people are gone all day (at least, pre-pandemic). But of course, per-person, the more dense household is still paying less money for a given usage amount.