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The American Energy Consumer
If the poor
and low and middle income groups are able to afford more, and the
well off would reduce their expanding rate of use, the total growth
in household energy consumption could moderate. Revenues would not
fall while utilities could serve their customers more equitably
with needed energy, and the environmental threat of more power
plants would diminish. The end result would be economic as well as
social improvement.
Expand
the consumer concerns of the Federal Power Commission and state
utility commissions. These responsibilities should include rate
reform as well as other consumer concerns. Such a change in the
scope of responsibility could improve substantially the energy
consumers' economic situation and their environment. Some of the
steps strongly recommended under an expanded mandate are as
follows:
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Prohibit
promotional practices and other types of advertising by public
utilities. This would reduce cost induced price increases by
eliminating artificial incentives to expand consumption, especially
by the most well off. Slowing the growth in energy consumption will
reduce the need for new capacity—a major reason for rate
increases.
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Make it
obligatory to include consumer representatives—some of whom
should be women and minorities—on utility regulatory
commissions and the Federal Power Commission. This is in line
with civil rights legislation. It would bring better awareness of
consumer needs and more equitable decisions that affect the
community at large, as well as give a voice to those who now lack
one. Restructured commissions also would be likely to curb
practices that fall hard on particular consumers. Some special
consumer concerns have to do with policies of turning off the gas
or electricity because of nonpayment of bills, requiring advance
deposits for installation, choosing the location of energy
facilities, and moratoria that prevent utility lines from being
extended to places where housing may be urgently needed. Consumers
would be especially interested in the matter of how to save energy
by having the gas furnace pilot light turned off in the summer.
Much gas could be saved if this were done with no direct charge, so
that everyone would do it. The service would be a legitimate cost
in computing the price of natural gas.
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Forbid
persons in or from the energy industry or associated industries
from membership on state regulatory commissions or from employment
in the Federal Energy Administration. Conflict of interest
should be a key criterion in screening commission members or
employees who may be in a position to affect energy
policy.