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What do Electric Consumers Want?

4/10/2012

4 Comments

 
I've just been sent one too many announcements for expensive conferences where regulators and industry try to figure out what electric consumers want.  The answer is incredibly elementary, however they continue to spend millions of dollars every year trying, quite unsuccessfully I might add, to figure it out.  Electric consumers simply want a meaningful seat at the table.

It is an inane misconception to attempt to determine what a person wants when that person is unheard in the discussion.  It's not that actual consumers are unwelcome at the events, it's that registration and travel to attend these conferences runs in the thousands and is prohibitively expensive to actual consumers.  Instead, consumer interests at these conferences are inaptly represented by regulators, who never actually communicate with the consumers they are tasked with representing.  Regulators see their job as "representing the interests of the consumers as a whole," and not as representing the interests of the individual consumers.  However, unless the regulators have an open dialogue whereby they listen to individual consumers, they fail to develop knowledge upon which to base their opinion of what consumers want as a collective whole.  They don't get that dialogue at these conferences either, because no actual consumers, or even representatives of groups of actual consumers, are ever present.

The days of blissfully unaware electric consumers feeding at the corporate energy trough are over.  As the electric generation, transmission and distribution business model has evolved into a profit-driven, investor-owned structure, unrest among consumers has grown.  On occasion, the utilities will miscalculate and commit an action that ends up being the straw that broke the camel's back, because they also do not know what consumers want (and they don't much care either).  For the utility it's all about what their investors want -- money -- and their task is to find a way to manipulate the consumers into unwittingly accepting their profit-seeking actions. 

The occasional "back breaking" initiative eventuality has been occurring with increasing frequency lately.  Just a couple of examples:
  • The Potomac-Appalachian Transmission Highline (PATH) Project that incensed landowners and ratepayers in three states and compelled them into educating themselves on utility processes and energy policy, which then propelled them onto a local/state/regional/national quest to have a seat at the table and some modicum of control over their fate.
  • The consumer "prairie fire" AEP's Ohio subsidiary lit with its unbalanced, gluttonous rate increases, a product of a corrupted state commission and corporate greed and arrogance.
When the straw breaks the camel's back like this, consumer anger spreads.  Along the way, it strikes a chord with a handful of the affected consumers (and who they are and why this happens is a whole different topic of discussion) who will become the driving force that sustains the momentum and empowers the consumers into long-term action.  While the majority of the angry consumers will appear to lose interest, what actually happens is that they are content to turn much of the day-to-day work and policy analysis over to the dedicated handful and wait to respond to additional calls to action.  This incredibly effective and persistent grassroots model is based on common cause among ordinary people.

Utilities have long sought to capture this dynamic by forming fake "grassroots" coalitions to champion their money-making initiatives, but that approach will never succeed or sustain itself.   Real people know the difference between koolaid and wine, and the essential handful of "real people" leaders is missing from this paradigm.

The "real people" are also missing from regulatory "consumer advocate" models.  Government-based consumer advocacy is disconnected from the consumers and is perpetually underfunded so that they are unable, or unwilling, to provide the same kind of comprehensive advocacy that grassroots consumer groups deliver.  Also missing from government-based models is common cause and that all important "prairie fire" spark that grassroots leadership supplies.

The only way regulators and industry will ever figure out what electric consumers really want is to change their approach to the dilemma by adding another easily available seat at the table.
4 Comments
JustMe
4/10/2012 01:26:29 pm

Reply
Keryn
4/10/2012 01:48:24 pm

Hey, JM!!!

Cat got your tongue?
Comment in invisible ink?
Do I need a secret decoder ring to see it?

Reply
JustMe
4/10/2012 02:32:03 pm

I will take this opportunity to thank you for keeping the embers live. And live they are. Susquehanna-Roseland has not gone unnoticed, nor has it been locally contained. The strategy is simply evolving and what a great year for masterful timing by ours truly .... The consumers. I just love political years, don't you? Keryn, you know I love history. Perhaps its time to revive the 'devolution' of FERC. We can't disrespect the memory of ENRON and all the documents are now public. I bet a FERC commissioner or two remember it fondly. And maybe the consumers should be rekinded about the fact that it was the power companies robbimg them blind who established this group as their private regulator outside the control of the Department of Energy and avoiding oversight of the SEC wheir their 'investment' activities would not be legal. I wonder if they miss papa Dick Cheney? So anyway, toothpaste can't go back in the tube and consumers have figured out how regulations, administrative hearings and public comments work.

Reply
Keryn
4/10/2012 02:43:21 pm

Well, that's a relief, I thought my eyesight had finally gone completely! Those regulations, administrative hearings, etc. really aren't that complicated either. Kinda makes you wonder why they're the ones making all the money doing it, while we're simply the ones having all the fun :-) Oh wait... maybe that's because we're not the ones who have something to hide...

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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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