Electrical Utilities, the law of supply and demand…. NOT

In the US most if not all electrical utilities are regulated monopolies. They are virtually guaranteed a “fair profit”. Utilities have base operational cost which must be met along with fuel and other cost. Now here is the clincher, if usage/demand goes down the money must be made up with rate increases. Hurricane Wilma struck Florida in 2005 destroying a large percentage of Florida Power and Lights infrastructure which reduced demand and so there income, resulting in rates being adjusted to make up the difference. They is a delicate balancing between conservation decreasing and new construction increasing demand. Power companies want to maintain there “fair profit”; they don’t want to have to build new power plants. This is why the promote conservation. What happens if we conserve too much for there “fair profit”, rates will go up. Home or business owner can avoid this; by taking the mystery out of solar energy. Download our free Whitepaper and whether solar or wind generation are right for you.

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