WPCNR THE POWER NEWS. By John F. Bailey. June 23, 2008: Con Edison reported to WPCNR last week that White Plains and area electric customers rates per kilowatt hour would increase 56.4% in customers’ June bills arriving in mailboxes shortly.
The cost per kilowatt hour in May was 18.08 cents per kilowatt hour, made up of 11.06 cents for Con Edison purchase of electricity for us, and 7.02 cents for the infrastructure delivery charge. Con Edison spokesperson Joe Petta reported that in June bills the cost of electricity would rise to 16.2 cents and the cost of delivery to 12.1 cents, totaling 28.3 cents per kilowatt hour.
Con Edison is allowed by Public Service law to pass along to Mr. and Mrs. and Ms. White Plains their increased costs of fuels, commodities the suppliers of electricity pass up to them. This is the second massive quiet increase in the kilowatt hour rate in three months, which was ignored by other media at the time they raised their kilowatt hour rate in January. The kilowatt hour rate in December was 8.58 cents to 13.1 cents in January, a 57% increase. It went up slightly two months ago with an increase in the delivery charge to 18.3 cents. Now in June it is to 28.3 cents per kilowatt hour, an increase of 200%
58% In January. Another 58% in June for Electric Supply.
Six months ago, the December KWH charge was 8.34 cents and the delivery charge was 7.1 cents for a total of 15.4 cents. In January 2008, one month later, you paid 13.2 cents per kwh for Supply and 5.2 cents for delivery, an increase of 20% overall – but a 58% increase in the cost of electricity.
In June you will pay 16.2 cents per kwh hour for Supply and 12.1 cents for delivery, Your total charge per kilowatt hour has gone from 18.4 cents to 28.3 cents. Your charge per Kilowatt hour is up 54%.
In terms of dollars it is startling. In December, just six months ago, using 906 Kwh hours, an acquaintance in White Plains was charged $76.32 for Supply and $64.05 for $139.61. In June if that person uses the same amount, 905 hours, they will pay $256 – a $116.88 increase in dollars – an 84% increase in real dollars.
Rates up 73% in One Year
In contrast, last May 2007, when the KWH Charge was about 16.4 cents per kilowatt hour, a person we know used 1,107 KWH Hours and paid $207.79. ($183 when you take away sales tax and adjustment) Had they used 906 hours, they would have paid $148. This year they will roughly pay $256 – the electric bill in dollars has gone up 73%.
Beware the Summer Demand Facing a 96% Rate increase. 10 Cents More Per KWH
However, in June the heat comes in, and this year’s rates are going to kill the average citizen cooling their home. A person I know, used 1,504 KWH last June, about 400 more KWH than in May. The June bill last year soared to $310, $100 more than last May’s $208.
If Mr. and Mrs. White Plains do not conserve, their bill will go commensurately higher. Should that person use 1,504 KWH hours this June they will pay about $425 for the same amount of electricity (and don't forget to add the sales tax!). That is a year to year increase of 37% in dollar outlay. Last June the cost per KWH was about 17.5 cents this year it is 28.3 cents, and increase of 61%.
The Delivery charge is the cost of “maintaining” the system, with recent delivery increases approved by the Public Service Commission.
Mr. Petta, the Con Edison spokesperson told WPCNR when asked if this was a direct result of the runup in the price of crude oil, gas and other fuels, last week, he said the increase is “a blend of long and short term contracts suppliers purchase” that Con Ed enters into to buy electricity. Asked if the kwh rates would continue to rise sharply due to the increase in the price of crude oil recently, or stablilize continuing into the fall and winter months, Petta said the company could not at this time answer that question.
