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Author Topic: Why does the electric company advertise?  (Read 2708 times)
Black Pearl's Captain
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« on: March 21, 2010, 05:55:15 PM »

fstsix brought up in another thread about how you don't have a choice of which electric company you use. It's always been a source of irritation with me that they spend so much money advertising. They have ads all the dang time here in Kansas, many per day.

WHY?

Nobody can change to another company and very few make their own electricity. So why do they have to spend a single nickel advertising?

Rant over.

Raymond
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Errandboy
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« Reply #1 on: March 21, 2010, 05:59:03 PM »

Just guessing here:  Because their profit is fixed as a function of their investment by the government since they are a monopoly, so the more they invest in advertising, the more profit they are allowed?
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Serk
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Rowlett, TX


« Reply #2 on: March 21, 2010, 06:08:39 PM »

WHY?

Because they want you to like them, and think of them as the good guys, and not write your state congress critters demanding deregulation and allowing competition that they'd then have to compete against...

(We do get to choose our electric provider in Texas...)

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Willow
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« Reply #3 on: March 21, 2010, 06:38:05 PM »

They don't consider it advertising so much as promoting public awareness.  The rates allowed the electric company are dictated by the Corporation Commission representing the taxpayers of the state.  The Corporation Commission is influenced by the messages of satisfaction / dissatisfaction they receive from the ratepayers.

If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.

The electric company has two sources of income.  One source is the rates paid by individual customers, both residential and commercial.  The second source is electricity marketed to other electric companies.  Honestly, in recent years income from marketing has been a major factor in the economic health of the company.  That's primarily because the electric company is able to generate and sell electricity to other companies whose own regulating entities haven't allowed them to build sufficient generating plants to keep pace with their demand.

De-regulation was a popular theme fifteen years ago, but the manner in which it was implemented has seldom, if ever, resulted in reduced rates for the residential consumer.  The idea has been abandoned or postponed by most who were considering it.       
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Gear Jammer
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« Reply #4 on: March 21, 2010, 07:01:00 PM »


If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.


My light bill for January (paid in Feb) was $409.   I'm hoping to keep it below $500 this summer  crazy2   uglystupid2   tickedoff
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fudgie
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« Reply #5 on: March 21, 2010, 07:25:48 PM »


If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.


My light bill for January (paid in Feb) was $409.   I'm hoping to keep it below $500 this summer  crazy2   uglystupid2   tickedoff

Daaammm!  Shocked  My winter bill is near $100 and my summer is about $40. I guess everything is big in Texas!  Smiley
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Doc Moose
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« Reply #6 on: March 22, 2010, 04:20:18 AM »


Quote

Daaammm!  Shocked  My winter bill is near $100 and my summer is about $40. I guess everything is big in Texas!  Smiley

Ah, but yur a different kinda animal, Fudgie!   2funny
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GW/Roadsmith Trike
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« Reply #7 on: March 22, 2010, 04:35:01 AM »

You must have a total electric house,  and a big one, Jammer.   Shocked hoser
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Jabba
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« Reply #8 on: March 22, 2010, 04:43:57 AM »

My Electric bill runs about $220 average.  and I am NOT all electric.  Although I am on an REMC and pay clost to $.12 per KWh.  Many people pay half of that... even in Indiana.  It's amazing all the places that one can burn electricity.

Jabba
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bogator
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« Reply #9 on: March 22, 2010, 04:47:34 AM »

 WOW, is Willow,that educated,or did he get that out of a book?????LOL  LOL
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Jabba
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« Reply #10 on: March 22, 2010, 04:48:26 AM »

Willow is a pretty fart smeller... er  Smart Feller!

Jabba
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alph
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« Reply #11 on: March 22, 2010, 05:01:54 AM »


If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.


My light bill for January (paid in Feb) was $409.   I'm hoping to keep it below $500 this summer  crazy2   uglystupid2   tickedoff

JESUS CHRIST!  WHAT THE HELL, YOU KEEP YOUR HOUSE TEMP SET AT 80 OR WHAT!?!

Our gas and electric are combined (since the local monopoly controls both in this area) and our January bill was just over $300.  we have a 3000 square foot home and keep the temp at 70.
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Black Pearl's Captain
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« Reply #12 on: March 22, 2010, 07:15:18 AM »

WOW, is Willow,that educated,or did he get that out of a book?????LOL  LOL

Uh yeah Willow, how come you know so much about electricity? You into that kinda stuff?

They would make me "happier" with my service if I knew they were'nt wasting money telling me how great they are on the TV.

Hit me with some 277 Willow.

Raymond
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Gunslinger
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Brian Huntzinger, EMT-P

Wamego, KS


« Reply #13 on: March 22, 2010, 07:40:09 AM »

I will second Willows statements.

I worked for Westar (Generation & Marketing) in a part time contract capacity until a few years ago. Jeffery Energy Center is the largest producer of electricity in the state of Kansas, and the majority of energy produced there is sold not to consumers, but to other producers and cooperatives.

That being said, there is 'some' choice as to where your electricity comes from, More on that when I return from the Dr. today
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Dag
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« Reply #14 on: March 22, 2010, 08:48:59 AM »

My Electric bill runs about $220 average.  and I am NOT all electric.  Although I am on an REMC and pay clost to $.12 per KWh.  Many people pay half of that... even in Indiana.  It's amazing all the places that one can burn electricity.

Jabba

Where I live the price is $.21 per KWh
In addition, we have to pay "rent" for the cables connected with the house.
The rent is almost the same price as the electricity, so if we add this with the electricity price the total cost per KWh will be close to $.40 per KWh   Shocked
I get my Electric bill bimonthly and the last one (for two months) was $1426.14
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Gunslinger
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Brian Huntzinger, EMT-P

Wamego, KS


« Reply #15 on: March 22, 2010, 11:37:18 AM »

Ok,
 The interesting side note is that a group of people can get together and choose to purchase power from someone other than Westar, Several municipalities do exactly this. There are many electric cooperatives around in rural areas as well. The comical thing is that I know a small town in NE Kansas that chose to purchase power from an electric cooperative which purchases its energy from Westar. They now pay about 30% less for the same power coming from the same grid, on the same lines as they would have paid to KPL/Westar/whatever you want to call them.
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Super Santa
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« Reply #16 on: March 22, 2010, 11:50:28 AM »

I bothers me that there is so much variation.

We are on Average billing, to help stabilize or billing as summers can be horrendous with air conditioning.  Just paid current bill and was $170.  So that is about $2040 annually.

Location:  Houston, Texas
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Varmintmist
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« Reply #17 on: March 22, 2010, 12:09:01 PM »

Quote
The comical thing is that I know a small town in NE Kansas that chose to purchase power from an electric cooperative which purchases its energy from Westar. They now pay about 30% less for the same power coming from the same grid, on the same lines as they would have paid to KPL/Westar/whatever you want to call them.
If the gov set up elec dereg like they did phone, the co-op would buy the power at 80% the cost that the elec company could generate and deliver it. That makes it fair in someones mind and thats the deal repurchase carriers get in the telco world. BTW, the owner of the lines still pays the taxes and maint costs.
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« Reply #18 on: March 22, 2010, 12:19:07 PM »

we have gas heat and cooking and electric otherwise

I have seen monthly bills in excess of 600.00

I owe I owe so off to work I go

The gas part is low in the summer and high in the winter

The electric part just keeps going up Undecided

Maybe Bonzo can explain it he works for Consolidated Edison
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QOTFU
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« Reply #19 on: March 22, 2010, 12:36:34 PM »


If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.



My light bill for January (paid in Feb) was $409.   I'm hoping to keep it below $500 this summer  crazy2   uglystupid2   tickedoff


Which provider do you use? In Houston, there is a choice. The price difference is HUGE. If you're zoned to Entergy you might now have a choice.  Check out www.powertochoose.com  We recently switched and saved a bundle.
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Jabba
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Greenwood Indiana


« Reply #20 on: March 22, 2010, 12:56:11 PM »

I keep fantasizing about an inductive transformer... and putting them under the transmission lines right down the street... ah... but that's already been done.  It took them like 10 years to find that "load" on the distribution.  I bet they'd be better at it today.

Jabba 
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fudgie
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« Reply #21 on: March 22, 2010, 02:35:35 PM »


Quote

Daaammm!  Shocked  My winter bill is near $100 and my summer is about $40. I guess everything is big in Texas!  Smiley

Ah, but yur a different kinda animal, Fudgie!   2funny

I've been told that by many a-person!  crazy2
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fudgie
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« Reply #22 on: March 22, 2010, 02:42:10 PM »


If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.
My light bill for January (paid in Feb) was $409.   I'm hoping to keep it below $500 this summer  crazy2   uglystupid2   tickedoff
JESUS CHRIST!  WHAT THE HELL, YOU KEEP YOUR HOUSE TEMP SET AT 80 OR WHAT!?!

Our gas and electric are combined (since the local monopoly controls both in this area) and our January bill was just over $300.  we have a 3000 square foot home and keep the temp at 70.
I just looked at our thermostat and its set at 56 deg and its turned off.  crazy2 We ran the pellet stove (electric) all winter and kept the gas funace as a back up, at 56 deg. Wood burner when it got to 0 deg. House is as big or bigger as yours but only live in the down half.  I'm not a big fan of having lights on. Electric stove also. Plus all the electricity from the barn, which I imagine is a 1/4 of it.
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« Reply #23 on: March 22, 2010, 02:45:38 PM »

I keep fantasizing about an inductive transformer... and putting them under the transmission lines right down the street... ah... but that's already been done.  It took them like 10 years to find that "load" on the distribution.  I bet they'd be better at it today.

Jabba 
I've never fantasized about that... in fact, I dont even know what that means. If I did, I still think I wouldn't fantasize about it Smiley
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Gear Jammer
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« Reply #24 on: March 22, 2010, 06:37:37 PM »


If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.


My light bill for January (paid in Feb) was $409.   I'm hoping to keep it below $500 this summer  crazy2   uglystupid2   tickedoff

JESUS CHRIST!  WHAT THE HELL, YOU KEEP YOUR HOUSE TEMP SET AT 80 OR WHAT!?!

Our gas and electric are combined (since the local monopoly controls both in this area) and our January bill was just over $300.  we have a 3000 square foot home and keep the temp at 70.

We have a 2000sq.ft house that is ALL electric.  Have hardly used the heater this winter, and then it's set around 68-70.  A/C in summer is required.  Cheesy   If you don't agree, you haven't been to Houston between May and October.     Evil   But we're out in the "sticks' and EVERYTHING is electric.  Turn on the water to get a drink, and you've used electricity. Bath,showers,sinks,washer,dishwasher, flush the commode all turn on the pump.  Keep food cold, heat food up, ovens,stoves, microwave,convection toaster oven, TV,satellite receiver,stereo,DVD etc.  Maybe if I turned off this computer???   Paying 11.4 cents/kwh. 
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Gryphon
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« Reply #25 on: March 23, 2010, 12:48:57 PM »



If it will make you feel better, the customers of the major electric company in Kansas pay some of the lowest rates in the country.       


I'm guessing Willow is using the same provider I am: KCP&L.  I just got my first electic bill since the move.  The rate here, with the Fuel Adjustment Clause, is 0.0604/kWh.  That is a great rate.  Natural gas is another topic entirely and propane another.  Let's just say that there are a lot of totally electric homes in this area. 
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Jabba
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Greenwood Indiana


« Reply #26 on: March 24, 2010, 05:00:45 AM »

I keep fantasizing about an inductive transformer... and putting them under the transmission lines right down the street... ah... but that's already been done.  It took them like 10 years to find that "load" on the distribution.  I bet they'd be better at it today.

Jabba 
I've never fantasized about that... in fact, I dont even know what that means. If I did, I still think I wouldn't fantasize about it Smiley

I am rather comfortable in my "geekdom".  I'd explain it, but it'd never be as sexy as you.  Essentially it'd be free electricity.  or well... it's STEALING electricity without actually hooking up to the grid.

I am an injuneer geek and I know it.


Jabba


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Black Pearl's Captain
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Emerald Coast


« Reply #27 on: March 24, 2010, 07:05:39 AM »

things you can't even see should be free. air, propane gas, electricity, music (sound)...

(you know it wasn't right when the guys with white hats duck).

Raymond


arc electriquepowered by Aeva
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G-Man
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White Plains, NY


« Reply #28 on: March 24, 2010, 08:46:10 AM »

we have gas heat and cooking and electric otherwise

I have seen monthly bills in excess of 600.00

I owe I owe so off to work I go

The gas part is low in the summer and high in the winter

The electric part just keeps going up Undecided

Maybe Bonzo can explain it he works for Consolidated Edison

I'm on the level payment plan with the Edison and shelling $360 per month.  About $2 of that goes to the metropolitan transit authority because, with over a million riders per day, they can't figure out how to run themselves so they tax people who don't even use the system (taxi cab customers, car owners...especially the ones that cross bridges and go through tunnells, cell phone users, etc.)
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