So what is the real reason my electric bill is going up?

My electric bills have been going up for the past few years, so I decided to analyze the data to figure out what was changing. Was it the consumption? Was it the per kWh charge? Was it the taxes? Maybe the service charge(s)? Or something else?

The consumption was pretty predictable and regular. Interestingly enough during these inflationary times, the per kWh charge was exactly the same over an eight year period. Taxes and other state charges didn’t seem to be modified very much, and the monthly service charge was also unchanged.

So where is the culprit?

In California, they have come up with what was supposed to be a credit to our account due to the use of renewable energy. They must have thought that renewable energy sources would provide less expensive electricity. 

Starting in 2016 in our case, this line on the bill was a very tiny credit. But as time has gone by, that column has morphed into a charge climbing steeply. See the result on my chart below.

This supplemental charge is calculated as a percentage of total consumption multiplied by the kWh price, so it moves up and down with changes in consumption. But you can still see the trend. Where it used to be a negative number, it has now reached a level of about 30% of the kWh rate, and hence of the whole bill.

This “Energy Cost Adjustment” has become a way for the company to increase our price while maintaining the per kWh rate. Perhaps they’re just trying to deal with California’s crazy laws, but it’s still VERY SNEAKY, don’t you think?

So is it just an underhanded way of increasing the price? Or did everyone simply misjudge the cost of renewable energy? 

Updated Proprietary M&Ms Inflation Gauge

I’ve made some revisions to my M&Ms inflation gauge, this time basing it on calculations of the “per ounce” price rather than per packet price, while still expressing the chart values on the historical price of a 1.69 ounce packet. 

Somewhere I read that the M&Ms company claims they always sell the small packets at 250 calories per packet. I have some issues with that, because I have noticed over the years that the size of the packets on sale seem to vary from year to year. However, assuming it is true, that would be the 1.69 ounce packet, according to the linked website. So I have chosen that size to be the anchor for this new graph.

You will note that I’ve left lots of room for future price inflation – and for my own stick-to-it-ive-ness given my advance age....

Enjoy! Hopefully along with a packet of Peanut M&Ms, which are my favorite! (Although the chart is based on the old classic.)