October 22, 2008
Hassett Calls for Utility Rate Cuts
Providence City Council member Terry Hassett wants the Public Utilities Commission to revisit this summer's rate increase (h/t):
"If the rationale was to boost the rate for electricity here in Rhode Island because it is directly related to the cost of oil, then the PUC is obligated to summon National Grid before them to reconsider the more substantial change in the world market price of oil,” Hassett said.I agree. If the previous justification for raising rates is gone, then lower them. Too bad the same philosophy didn't get applied to government spending.“As the cost per barrel of crude oil has plummeted, it is the PUC’s turn to act on behalf of the consumers in Rhode Island and reduce the rate of electricity,” Hassett said.
I was under the impression that the bulk of electricity production in the United States is done by coal-fired generating plants (and 20% is from nuclear), so what does the price of oil have to do with the price of electricity?
Posted by: Chris at October 23, 2008 1:07 PMHydroelectric also supplies power.I read an article about coal being transported by rail across country from Wyoming to somewhere in the Southeast,and it struck me that oil does play a role-in the cost of transportation by diesel locomotives,but how much I really couldn't guess.
Posted by: joe bernstein at October 24, 2008 12:21 AM