Berry Petroleum Company

  BRY website

BRY   /  Message Board  /  Read Message

 


 








BigRiverDago
brooklyn137
chaunclm
coolreit
essence_of_quint
farml1234
hotelonthemoon
Igle
jayelliii
JimNewman
k1f
mrdecember123
muchofunbago
nicnic
rgm714
riderlessbeast
Scam
thegypsywasright
Wiggling
Wilk
Williamv
xhha69b



My BRY Ignore List


Keyword
Subject
Between
and
Rec'd By
Authored By
Minimum Recs
  
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board
Msg  89389 of 115589  at  3/9/2012 5:30:41 PM  by

makemoneyinoilandgas


 In response to msg 89383 by  Scam
ignore topicview thread,  thread start

Re: Energy Disinflation as a Source of Stimulus?

The author of the original article has very little understanding of how the utility company works. Although it sounds very logical that when the fuel price drops the price of electricity follows, it is not exactly the case.

First, the rate that the consumers pay is set by the State PUC. It is not very often that the PUC orders the utility to lower the rates just because the fuel costs less. The %% of electricity produced by burning NG is far from 100% (25%, maybe 30%?). I do not think the lectricity produced from coal, hydro, nuclear, wind/solar became much cheaper. Second, the bill has many other components, some of which are fixed fees and do not depend on anything else. Then, delivery charges that only depend on volumes consumed. Yes, warm weather helped in that case, but not the falling NG price.

Now, about gas utilities. They are passing to the consumers the price they paid for NG. By law, they must have their storage full before the heating season starts, and actually they do not care about the price. Yes, they try to get lower price from their suppliers - because the lower bills have higher chances to be paid. But they do not try to save every possible nickel and dime. Again, there are some fixed fees and delivery charges on a gas bill as well.

Why do we scream about the gasoline prices? Because we see them every day, on every intersection. And those are the prices we pay weekly, or twice a week. You would feel the same if you pay cash for your increasing heating and cooling (Wow! My $100 is now not enough! I used to pay my bill with $100 and even got some change!)



 
     e-mail to a friend      printer-friendly     add to library      
| More
Recs: 2  |  Views: 200
Previous Message  Next Message   Post Message   Post a Reply return to message boardtop of board

Replies
Msg # Subject Author Recs Date Posted
89476 Re: Energy Disinflation as a Source of Stimulus?....makemoneyinoilandgas Scam 5 3/12/2012 6:10:58 AM


About Us  •  Contact Us  •  Follow Us on Twitter  •  Members Directory  •  Help  •  Advertise
Not a member yet? What are you waiting for? Join Now
Want to contribute? Support InvestorVillage by donating
© 2003-2013 Investorvillage.com. All rights reserved. User Agreement
   
Financial Market Data provided by
.


Loading...