Eye On Modesto

Thoughts and observations about Modesto and Stanislaus County

Archive for the day “January 4, 2012”

Residential Customers pay 82% more for Electricity than Industrial Customers

By Emerson Drake

Yes I know it’s a surprise for most people but if you pay more than $100 dollars a month you are paying almost twice what industrial customers pay.

Ok, so you want the specific breakdown? Here it is:

Industrial customers  pay $0.085 per KWH.

Home customers  start paying at $0.1367 KWH for the first 500 KWH (kilowatt hours) which equals the first $68.35 of your electric bill.

From there on they charge you $0.1498 KWH or 82% more than industrial customers pay.

Commercial customers pay $0.121 KWH, so residential is 73% more than commercial.

Literally, everyone else pays less than the average residential user.  Now there are breaks for low income and medical customers but residential users pay for that, too.

MID retail revenues come to approximately $300M.  Of the $300M, Residential pays $133M, Commercial $87M, and Industrial pays $60M.

So while residential users only consume 32% of the total electricity sold they pay for 44%.

Since all of the money MID collects is thrown into the pot to pay their bills, basically residential sales are helping to subsidize all of the rest of MID business.

Now don’t forget the monthly $12.50 ‘user’ fee they charge just to have a line to your home.  And it’s charged even if you don’t buy electricity from them. And there are a lot of residential users 92,160 vs 19,219. We are the people electing the MID Board and yet we are the ones paying the most.

Totals of revenue vs power consumption

Residential:    $132,690,000M         893,956 KWH

Commercial:  $ 87,000,000M          726,854 KWH

Industrial:       $ 66,503,000M          786,935 KWH

Other:             $12,868,000M          120,286 KWH

For this we can thank longtime MID Board members Tom Van Groningen and Paul Warda along with MID General Manager Allen Short. During their time on the Board we went from owing less than $100Million to an astronomical amount of $1.2Billion Dollars.

The term mismanagement just doesn’t fully do justice in describing their actions during this time.

The following is the MID report I pulled the information for this article.



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