I was half asleep while watching the news this morning, but halfway through my first cup of coffee this story caught my attention:
Customers speak out about Duke Energy rate increase
"Raleigh, N.C. — Duke Energy customers voiced their concerns on Thursday night about a planned 13.5 percent rate increase.
"Under the plan, people with an average monthly bill of $100 a month would go up about $18."
I hate to pick on my friends at WRAL, but how did that get on the air?
WNCN says the increase is 12.6% -- and their math works out:
"The utility wants a 12.6 percent hike, which would be an additional $150 a year for a household that currently pays about $100 a month."
WTVD also says the rate hike is 12.6%, and claims that it's "about $11 per month." But they don't mention a base rate. If the average bill is around $87, then that works out.
Is the proposed rate increase 12.6%, or 13.5%? Is the average bill going up $11 per month, $150 per year, or $18 per month? Is $18 = to 13.5% of $100?
Friday, September 11, 2009
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This may not be simple innumeracy because the average bill of a hundred dollars probably includes a bunch of "fees" so when the rates go up, so do the applicable fees. Of course I am not familiar with Duke Energy rates, but typically these fees apply. Okay so why doesn't the reporter discuss this? I can think of a couple of reasons, but the most obvious is that they don't want to make a big deal of these often ignored taxes. In our area one of these taxes is called a "fuel surcharge" which is just a tax just not called a tax. Does the reporter want to say that when Duke Energy (evil polluting company that is providing a service the customer wants to buy) raises rates and you have to pay an extra $13.5 that the government is going to go along for the ride and collect $4.5 while providing no service for the customer but providing for themselves and using our money to advance their agenda.
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