Utility restructuring has decreased the cost of power. In the mid-Atlantic region, the
estimate is a savings of $2.2billion annually. I know of power plants that, when owned by regulated utilities, had 500 employees and was operated at about 65% capacity; once exposed to competitive forces, the same plant operates at >85% capacity with only 50 employees.
The effect in the nuclear industry has been profound. Restructuring moved most nuclear assets from regulated utilities to competitive suppliers in the early 2000s. Take a look at the efficiency improvements in refueling outages:
View attachment 39517
But we digress....
Greg, since you live in Oregon, I thought it'd be helpful to see the average wholesale price of power in your state, annually:
| $/MWh
MidC |
2003 | 40.95 |
2004 | 44.62 |
2005 | 62.80 |
2006 | 50.57 |
2007 | 57.00 |
2008 | 65.32 |
2009 | 35.85 |
2010 | 35.88 |
2011 | 29.42 |
2012 | 22.78 |
2013 | 35.71 |
Source: EIA (
Electricity - Analysis & Projections - U.S. Energy Information Administration (EIA))
These are nominal dollars, too; on an inflation-adjusted basis, the decline in recent years is even sharper. (2013 is partial year, of course, so excludes most of December, when prices are usually lower than the annual average.) To the extent that your
retail prices are rising, it has to do with higher investments in distribution and transmission facilities (including SmartGrid initiatives), support for energy efficiency and demand-side management programs, and subsidies for renewables.
Another point: as usage falls, the fixed costs of running the power system have to be spread over a smaller base. Consequently, the delivered price rises.