Creating Electricity is Cheap But Delivery Costs Are Through The Roof!

powerpoleGenerating electricity in Texas and most of the nation is getting less and less expensive. Natural gas remains extremely cheap and demand for products and goods has slowed here in the U.S., China and the rest of the world.

It had been dirt cheap to deliver electricity across the poles and wires but this has changed in just a few short years. To start everyone received a $3.24 surcharge per month in most areas and this fee varies based on your area of Texas.

Before people even received the new smart meters they had to start paying for it on their electric bill. In many ways the electric grid showed promise of being a creation of economic proficiency but it has taken on a monstrous plan of out of control upgrades with little regard to a concern for budgets and what money we still have left to spend.

It’s no longer in generation of electricity that we find the cost but it is now becoming where most of the cost is in delivering this power over the electric lines.

This awesomely cheap price for electricity service for many people has been wiped out almost completely in some states with the escalated spending in upgrading the electric grid.

Upgrading our transmission and distribution system is a great idea but politicians need to consider our budget and what money is available to spend rather than basically handing over a new tax to the citizens.

The answer that increased and hidden taxes will solve our problems is simply not true as we can see very simply our government has no ability to stop the out of control deficit spending they are doing in the “fiscal cliff” scenario now on display in Washington.

insideofpowertransformerIn New York City it actually now costs more to deliver the electricity than it does to generate it in the first place. There is a valid reason for upgrading the electric grid considering much of it was developed back in the 50’s. The current electric grid needing upgrading is lacking quite a few necessities to make it more efficient as well as reliable.

Just to keep the grid running the U.S. will need to spend on average about $3 billion dollars annually just to replace the current electric lines and about 6 billion annually to replace old poles and transformers. Keep in mind these costs don’t even consider upgrades in technology with new and modern equipment related to the smart grid.

These $9 billion in annual costs is nothing compared to the upgrades being done to the smart grid to compensate for the decades of neglect our power infrastructure in this nation has received over the years.

In just the last 3 years about $34 billion has been spent on upgrading power equipment to efficient smart grid technology. Consider the lack of government planning and prudent use of tax dollars to account for the routine upgrade and maintenance of something as necessary as electricity service.

Instead of careful planning, government saving and developing the upgrade over time we are hit with this all at once and in some cases taxed through new fees showing up on our electric bills, carbon credit markets, EPA rules, and a host of sneakily devised ways of taking money away from citizens while not causing an uproar.

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