A penalty for consumers who conserve energy a little too well?

Some Texas utility customers have been surprised to find they are charged a fee for using less than a specified amount of electricity, even while the utilities serving them promote energy conservation and efficiency. Utilities in the state are largely unregulated and there are hundreds of rate plans for customers to choose from. Many include the fees.

The Houston Chronicle undertook an analysis of rate plans from 49 companies providing electricity in the Houston area, a total of more than 300 plans -- and determined that more than 200 included the minimum-use fees, or approached the matter from the other direction and offered credits for customers who used more than a specified amount of power.

While the fees varied, they averaged $10.67 and most were triggered if customers used less than 1,000 kilowatt-hours of power. Average use in Texas is about 1,200 kilowatt-hours per month.

Utility philosophies on the fee differ. While some say they would prefer to charge customers a standard rate to avoid surprising them with additional charges, others defended the practice saying the fees are assessed to pay for fixed costs that occur regardless of whether customers use a lot of electricity or very little.

Jake Dyer, a policy analyst with the Texas Coalition for Affordable Power, took exception to the argument.

He was quoted in the Houston Chronicle as saying, "You don't pay a minimum-use fee when you step into a grocery store. You don't pay a minimum-use fee when you shop for any other product. Most businesses price their product in a way that the people who actually buy it will pay for their fixed-cost infrastructure."

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http://www.fierceenergy.com/story/penalty-consumers-who-conserve-energy-little-too-well/2015-02-01