02-09-2012, 05:52 AM
I used to know a guy that worked in management for Southern California Edison (lower level management). As a business oriented person I had a hard time understanding how a business could be expected to increase earnings (the goal of stockholders) while at the same time marketing towards decreased volume of sales. The reason they produce these stupid promotions to encourage lowered electric consumption is to meet goals set by the PUC and because they think that people are that stupid that this simpleton stuff is required.(IMO they may be correct lol).
Running an electric grid requires a large amount of fixed costs. To lower your fixed costs per unit you would either need to increase volume (increasing usage) or lower fixed costs (remove service to unprofitable areas). Since this is a government controlled industry and their rules state you can do neither, then someone has to pay the increased costs due to inefficiency. It will either be the users (higher rates) or taxpayers in general (increase in government subsidies).
http://www.wedekingphotography.com
Running an electric grid requires a large amount of fixed costs. To lower your fixed costs per unit you would either need to increase volume (increasing usage) or lower fixed costs (remove service to unprofitable areas). Since this is a government controlled industry and their rules state you can do neither, then someone has to pay the increased costs due to inefficiency. It will either be the users (higher rates) or taxpayers in general (increase in government subsidies).
http://www.wedekingphotography.com