pa_bourbon

pa_bourbon t1_jdcfbsb wrote

That’s not how they price the commodity though. It’s a bundle price based on the average of all sources of generation that are purchased by a given distribution company.

You don’t consciously choose the plant that generates your power. The distribution utility buys from one to many sources to keep the grid fed with power based on demand. Plants like nuclear power plants provide the stable base load in most cases. Some gas and even coal plants do the same in some areas. More gas and coal plants are fired up as “peaking plants” as demand rises and falls throughout the day.

The price you pay is based on the average of all sources used by your distribution company and is regulated by the PUC. The distribution company makes no money on the electricity it purchases by PUC regulation. It’s a straight pass through. The monthly flat rate customer charge and the other distribution charges on the bill cover their costs and generate their profit. The profit is also regulated by the PUC as part of the rate making process.

The only way to sort of get close to picking your generating source is to buy from a “green” supplier. But even many of these turn out to be scams.

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pa_bourbon t1_jdb5thy wrote

Electric rates spiked dramatically in the last year. PA generates a lot of electricity with natural gas. Natural gas prices spiked due to the war in Ukraine. It’s a global market.

Natural gas has plunged recently. A downward adjustment is coming. If you have your distribution utility as your supplier, by PUC regulation they make no money on the commodity. It’s a straight pass thru at the cost they pay the generator.

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pa_bourbon t1_j9ytdo0 wrote

I’m in western PA. Our Penn Power rates have had similar increases in the last year or so. It’s all tied to the price of natural gas since we generate a lot of electricity with natural gas.

The war in Ukraine created a spike in global gas prices. That flowed through to your utility bills. Both electric and gas. Gas has cratered lately due to the relatively warm winter. Downward adjustments are coming.

Surcharges and weather normalization factors are all allowable and still regulated by the PUC. Utilities are switching to these since usage is dropping due to gains in efficiency. All of the infrastructure still needs to be paid for and charges that are based on consumption are too variable. So they switch to surcharges and normalization factors to try to stabilize revenue.

The US has some of the lowest fixed monthly customer charges in the world. Places in Europe charge $20-$30 a month or more as a base charge because of this same issue.

Nationally we are shutting down the cheapest most reliable source of generation in nuclear. That isn’t helping costs either.

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pa_bourbon t1_j9wb6qd wrote

I said they sell the gas at cost. I didn’t say they made no money.

Utilities operate on an allowable rate of return on invested capital on the allowable rate base. Invested capital to a gas utility is made up of pipes, pumping stations, valves, storage facilities, buildings and vehicles, computer systems, etc.

In a complex calculation, these assets depreciate a little of their value each year throughout their useful life. The role of the PUC is to set the allowable return on that asset base, then the utility needs to manage rates to that return in consultation with the PUC on a periodic basis.

But the gas is straight pass through at cost. They make their money on the fixed fee charged monthly and other charges on the bill (distribution charges, special riders as agreed by the PUC, etc).

Natural Gas prices have plunged recently. The commodity charges get adjusted by the PUC quarterly to make sure there is no profit on the gas. A downward adjustment is coming soon depending on your utility’s schedule.

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pa_bourbon t1_j9w9j0r wrote

By PUC regulation the distribution utility makes no money on the gas they distribute. They pass it through at cost. The other charges on the bill are based on convincing the PUC that the improvements they are making are necessary for continued safe operation.

Unfortunately we have a lot of old pipes in the ground that need updated. That costs money.

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pa_bourbon t1_j5b2dnx wrote

Go look at this chart. Shale boom around here started just before 2010. Prices stayed low until the silliness with Russia and Ukraine started. Russia supplied much of Europe’s gas and that ended when the war started. That was a huge global supply disruption and prices followed.

The shale effect absolutely existed for more than a decade. The chart shows it.

https://www.eia.gov/dnav/ng/hist/rngwhhdm.htm

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pa_bourbon t1_j2biic1 wrote

Don’t confuse attendance with tickets sold. They sell them all - as all but a very few are season tickets. I am a season ticket holder and have been for years.

The paint isn’t the mess. Washing it off destroys the grass.

You’re one of those that needs the last word so I’ll give it to you. I’m done.

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pa_bourbon t1_j2b1zfg wrote

The Rooneys not wanting a field to be a mess for a big business NFL football game because a college team that can’t come close to selling out the stadium unless it’s penn state or WVU desires to repaint the end zone seems like an OK position for the Rooneys to take in my book.

You started with the obscenities - hence the “mad” comment.

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pa_bourbon t1_j2au82e wrote

Those surveys were in the first 10-12 years the stadium was open. That entire field - not just the grass - the soil and all - was replaced after a U2 concert in 2017.

And there are two different organizations involved in that stadium. The Steelers might be willing to pay. Pitt likely has a very different budget structure they are dealing with for their operation.

But keep getting madder.

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pa_bourbon t1_j2arq3m wrote

The grass is by far the more expensive choice over field turf, thereby negating your cheapness argument. The grass requires a full field heating system and as I’ve said, they’ve re-sodded it 3-4 times this season already.

Also, the NFLPA overwhelmingly prefers playing on grass too for injury reasons.

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