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Show Residential Pov(er Rates Unfair, Group Believes Cheap energy is gone forever. Prices at the gas pump have doubled since the Arab oil embargo hit in 1973. Anyone paying monthly utility bills knows they are paying more for electricity and gas than they ever did before. In fact in Utah residential gas and electricity prices have increased over 50 percent in the past 18 months and utility company officials predict higher high-er prices over the forseeable picture. Until fuel prices started to skyrocket no one worried much about energy costs. Now with prices climbing like they are consumer groups are beginning beginn-ing to question what is happening. In Utah many organizations and individuals are asking for a complete review of how residential customers are charged char-ged for their electricity and gas. Utility prices are controlled by the Utah Public Service Commission. Each time the power company or the natural gas people want to charge more they must ask the Public Service Commission to approve ap-prove their request. Right now the commission is examining a multi-million dollar dol-lar rate increase granted to Utah Power and Light Co. Several consumer groups are challenging the way the increase is applied to customers. custom-ers. One statewide organization, the Utility Consumer Action Group, UCAG, says the way utility rates are accessed to residential users is unfair. The action group says that residential customers pay more than their fair share of the cost of electricity and gas service. They point for example ex-ample to Utah Power and Light Company figures that indicate that in 1975 residential customers cus-tomers accounted for 20 percent of all electricity sold and generated 33 percent of the company revenue. In other words residents use 15 of Utah Power and Light electricity yet pay for 13 of it. Utility Consumer Action Group representatives claim this happens because of the present pricing system which charges a higher price for the , first amount of electricity used and then less as more is used. The first units of electricity cost around 6.5 cents per unit llrallmllmllmllmllrallteillrallrallra and after several hundred units the cost drops below 5 cents per unit, and then down to about 3 cents per unit. So in effect "the more you use the less you pay". This sounds good but it works against most homeowners and renters who use a small amount of electricity when compared to large industrial consumers. Industrial customers are encouraged to be extravagent by the present price system. With the price lower as more is used there is less incentive to be efficient. According to the Consumer Action group residential customers cus-tomers may well be subsidizing subsidiz-ing the less efficient consumption consump-tion of larger consumers. UCAG is supporting the adoption of the "Lifeline" price system. Simply stated Lifeline means the "more you use the more you pay". Applying the Lifeline system to the first few hundred units of electricity means customers pay a set amount, then as they use more the price goes up sort of step by step. Smaller users (and larger industrial users too) would save money by using only what they need. As fuel prices go up and gas and electricity are more llrallrnllrallrallrallrallrallrallrallrall expensive to produce something some-thing must be done to encourage the wise use of our resources. As the Utah Public Service Commission reviews the utility rate structure question they will do well to consider how to save energy at the same time they try to assure Utah of healthy economic growth. ' Perhaps Lifeline is our answer. |