Linkage big demand in summer
Price of electricity poised to increase
Deregulation taking effect in '09, stirring interest in savings
Sunday, July 8, 2007 3:44 AM
By Spencer Hunt
THE COLUMBUS DISPATCH
So far, the electricity companies are the ones who have to pay extra for all the power we use during summer heat waves. But when a rate freeze expires in a year and a half, we, too, could be paying premium prices to run the dishwasher when demand is at its peak.
"It can be as much as 10 times more than what you pay on average," said Dan Johnson, policy and market analysis chief for the Public Utilities Commission of Ohio.
The agency is examining advanced meters that let people see the most-recent price of the electricity they're using. They are among the newest ideas to attack the nation's summertime energy crises.
Ohioans currently pay for their electricity at rates set by the state's utility-deregulation law. The price they pay doesn't rise or fall with demand.
But the rate freeze will expire by January 2009, raising the possibility of much higher electricity costs.
The increased demand, especially during summer, can push power plants beyond their capacity. That raises the risk of rolling blackouts and forces power companies to fire up "peaking" plants, used only when demand is high.
Electricity from such stations is expensive, and not only because they are used for only a few days each year.
"They typically burn natural gas, which is a more-expensive fuel," said Pat Hemlepp, an American Electric Power spokesman.
Advanced meters combined with electricity rates that rise and fall with demand could spur customers to cut $3 billion a year from the nation's electricity bill, according to a recent study by the Brattle Group, an energy-consulting firm with offices in a number of cities, including Washington.
Installed in homes and apartments, the meters can show people how much electricity they're using and its most-recent price.
"It could give them an option to know when they can save money on their electricity," said Anthony Dill, a spokesman for the Ohio Consumers' Counsel, which represents utility customers.
The counsel wants advanced meters in Ohio.
The average generation rate for electricity in Ohio is 5.5 cents per kilowatt-hour, the PUCO says. The average rate during off-peak hours, evenings and weekends, ranges from 2.5 cents to 3.5 cents per kilowatt-hour, Johnson said.
The cost rose as high as 40 cents a kilowatt-hour last summer, he added.
Don't expect the devices to be coming to homes any time soon. The state is still studying the various systems, in part to see whether they're worth the cost.
"The direction we're heading is to enable customers to at least have the option to see what real-time prices are," Johnson said.
shunt@dispatch.com Saving energy in summer
Cutting electricity use during peak hours can reduce the risk of blackouts and cut the need for costly "peaking" power stations used only in times of high demand. Steps you can take:
Set the thermostat at 78 degrees.
Keep lamps and televisions away from the thermostat.
Use a microwave instead of an electric oven.
Use ovens and clothes dryers in the morning and evening, or hang laundry outside to dry.
Close blinds and drapes on sunny windows.
Use light-colored window shades to reflect heat away from the house.
Use fans to help the air-conditioner cool the home.
Source: American Electric Power