(MISES) – Utility bills – for electricity, natural gas, water, and garbage – have by long-standing tradition been based on customer usage, measured in kilowatt-hours of electricity, therms or Btu of natural gas, hundred cubic feet of water, or number of garbage cans. Every residence and business has electric, gas, and water meters that measure utility usage.
But changes are afoot in the utility business as federal and state governments urge Americans to convert from Fossil Fuels (Renewable Energy) to electricity for home heating, appliances, and transportation. From this transition will undoubtedly follow changes in utility rate-setting models.
Some electric utilities currently charge customers a flat, fixed fee as well as usage-based charges, both on the same monthly bill. The fixed fees, often called “customer charges” or “meter-reading charges,” are imposed irrespective of energy usage. These fees assure revenue stability and offset the overhead expenses of running electric utilities. Energy usage-based charges, which can vary seasonally, are designed (and regulated) to recover the cost of the electricity sold.
The post State’s latest hustle: Utility bills based on ratepayers’ income appeared first on WND.
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