AKgrampy
Well-Known Member
- First Name
- Mike
- Joined
- Jan 29, 2022
- Threads
- 5
- Messages
- 2,939
- Reaction score
- 2,888
- Location
- Fairbanks, Alaska
- Vehicles
- Ford Expedition, Ford F-150, Mach E GT
- Occupation
- Retired
I was a VP for a utility for 15 years. I can’t speak for all of them and we were a co-op but in general utilities do have to justify their rates and they are regulated. I do realize the big boys are investor owned but even then I think they are regulated and have fixed returns. I am not a financial guru but I think there is something to be said for a guaranteed ROR and I imagine some investor owned utilities have decent ones. A utility took over the military base locally and they were guaranteed either 12.5 or 14% return on capital improvements. They went wild replacing power lines, etc until someone finally got control of things. Speaking of whole house generators that was the first thing I purchase when I retired! Not that I no longer felt the utility would cut it after I left. Our local utility’s saving attribute outage wise is we installed a 27 MW battery back up system. Prevents many outages. Our main generation is oil fired so very expensive so battery backup saved money.One of the challenges in having any debate is understanding that different people have different needs. Yes, I want an EV that goes further than 275 x 80% = 220 miles between stops on the highway, but only because a) there aren't enough chargers and b) charging takes too long. But, I don't need two cars that do that. For those that commute to work, many drive short distances. Having a 50 mile range vehicle might be just fine.
Yes, cheap electricity MIGHT drive EV adoption. Problems include:
- Many don't understand their cost of electricity. You ask them and they say 5 cents. Then they figure out the fully loaded cost, and say 14 cents...
- Cheap electricity is often supplied by polluting plants.
- Electricity rates vary widely across the country, and even with a state / county. We were looking at relocating to an area in the SE, where the power is nuclear. One small pocket was a coop utility, buying from the nuclear utility, with much higher rates.
I don't know all the financials of utility companies, but I'm going to challenge the statement that most utilities don't make massive profits. Mine has a market cap of $23 billion. Their net income is over $1B a year. Each year my rates go up. Despite having underground utilities, and being on the edge of a relatively large city (>100,000), we lose power 6 or more times some years. The utility kept trimming trees on the power feed to our neighborhood, with no improvement. So, they embarked on a massive clearing of trees "that you won't pay for". Then they asked for a rate increase to pay for that trimming that we weren't paying for. The CEO makes in excess of $10 million a year, and owns shares work hundreds of millions.
After close to 20 years in our home, we bought a whole house generator due to the unreliability of our power. It has run for more than a day a handful of times in under a year. Cost me just over $10,000. And it's powered by natural gas, supplied by the same utility. Each kW of power provided costs me, as you would expect, much more than electricity would.
I don't believe that electricity costs are impacting those buying $60,000+ vehicles.
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