Free isnÂ’t really free
By St. Petersburg Times
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As with any rebate or "free" thing, somebody has to pay for it because, ultimately, it costs someone, something. In this case, that someone is you, the energy company customer.
Why does this matter right now, other than the hit you take in the pocketbook each month as an energy customer? Because the state is about to decide just how much those free programs should cost you.
The state Public Service Commission is set to vote on the state's goals for energy savings. Whatever the commission decides, utilities like Tampa Electric and Progress Energy will respond with a set of plans on how to achieve those goals.
They come in the form of "free" energy efficient light bulbs to customers, "free" home energy use checks, and rebates for energy efficient appliances.
"Utilities are allowed to pass those on to the rate base," said J.R. Kelly, the state public counsel.
For example, this year, Progress Energy customers pay $2.70 a month per 1,000 kilowatt hours of electricity into the utility's energy saving program. The average customer uses about 1,200 kilowatts hours a month, so that's about $38 for the year tacked onto the bill.
Many customers fail to take advantage of the energy saving offers, even though they are paying for them. Suzanne Grant, a spokeswoman for Progress Energy, said some 30 percent of low-income customers eligible for the weatherization program do not use it. Progress Energy offers that to specific communities in its 35-county coverage area on a predetermined schedule.
But anyone can request the home energy check. It's called "free," but the reality is, as Grant states, "this is something we offer for no additional charge."
No matter which customers take advantage of the programs - rich, poor, big house or small - every customer subsidizes the cost. Should a low-income person help pay for the new energy efficient air conditioning units installed in a multi-million-dollar home?
It's a tough balancing act, Kelly said, especially with so many people suffering from the economic downturn.
"It's a concern," Kelly said. "Do you not implement any program?"
Grant, the Progress spokeswoman, said the utility is concerned about how the state's final decision on the energy savings plan will affect customers struggling through tight financial times.
"If the commission goes with the more aggressive approach, that would increase the bills," Grant said. "We feel energy efficiency is really important. Our concern is at what cost to our customers?"
Progress Energy and Tampa Electric announced that customers would save $4 to $5 a month based on 1,000 kilowatt hours of usage because of lower fuel costs. That savings could be offset and surpassed by the potential increase in the energy savings program charges.
