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JAdams: Planning economies

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Utilities are using “accounting orders” that often amount to rate increases for their customers in order to maintain their bottom lines.

“At least 35 states either have granted utilities these writs or are poised to do so. The accounting orders encompass a broad range of costs associated with COVID-19 — but, primarily, the rising “bad debt” associated with unemployed customers who cannot pay their bills. An accounting order stands as a regulator's pinky swear that a utility's other customers, not its shareholders, will pick up that tab.”

“Electric and gas utilities' fortunes should be tied to the wider economy. Shuttered office buildings and small businesses mean fewer kilowatt-hours sold, and mass unemployment leaves ratepayers unable to pay what they owe to the power company. Yet, increasingly, utilities' returns are divorced from the rest of the economy. That is because government regulation of these monopolies — often imagined as protecting consumers — often does more to keep intact utilities' bottom line. Indeed, in the midst of COVID-19, a low-key bailout of these companies already has begun and, unfortunately for utility ratepayers, it's happening on their dime.”

JAdams: Energy Assistance in COVID-19

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See the Full Article on how COVID is impacting different domains of the energy sector.

“‘For utilities regulated by [public utility commissions], the commissioners are going to be focused in the coming months and year or two on things that are related to COVID and helping customers who can't pay their electricity bills, which means it's going to be harder for the commissions to have time to focus on [carbon-cutting] proposals,’ said Julia Hamm, CEO of the Smart Electric Power Alliance.”

“The Southeast is a focal point during the pandemic, as it has a high energy burden because so many people live in older, inefficient homes in a region that faces high heat and humidity. Consumer advocates criticize electric companies and their regulators for not making energy efficiency more of a priority.”