Energy Efficiency

I wrote this essay (blog) back in 2009. It still rings true today.

Have you ever wondered why the light company seems so interested in getting you to cut your power consumption? Wouldn’t it make sense that the light company would want you to use more energy so that they make more money? There’s a reason that the light company wants you to use less. It’s so they can make more money. That’s right, the less energy you use, the more money they make. Here’s how it works. Every year, your light bill goes up. It’s not because you are using more energy, per se, it’s because the light company keeps jacking their rates up. Just around here, Alliant has asked for several rate increases and in fact, they got a rate increase last year which still isn’t fully implemented, and they’re back already this year asking for a 20% increase on top of that! If your energy usage remained the same, you would see your light bill skyrocket. You would feel the hurt and would try and stop your company from jacking their rates up. If you used more energy, not only would you feel the hurt, the light company would have to invest in more infrastructure and that hurts their bottom line. Also, if they had to generate more electricity, their cost per unit of energy would decrease because as we all know, when you produce in bulk, the cost per unit goes down. The light company is doing what is in their best interest; getting you to use less of their product and pay more for it. This reduces their cost because they are producing less without having to invest in infrastructure and you are paying more per unit for that electricity. Your bill isn’t going down because they are charging more per unit, year after year. Here’s the kicker; you’re a captive audience. It’s not like you can say that Company X’s rates are too high so you’ll just have your house wired to Company Z’s lines. No, you’re going to pay whatever the light company says or it’s lights out for you!

Next time you see your light company offering rebates for energy efficiency items, think about it and then realize that it’s not for your benefit really. You’ll eventually be paying the same amount each month for electricity. You’ll just be fattening the wallet of your light company all the more. It’s not like you’re going to have a choice either. You better take the incentive and at least reduce your consumption or you’ll be one of those really feeling the pain. It’s the same idea behind the gas companies wanting better fuel efficiency. It allows them to drill less and charge more per unit, which again fattens their wallet. That’s why these companies seem so interested in getting you to use less of their product.