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In Arizona the utilities wanted a $50 fixed monthly charge; the regulator allowed $5.
Many utilities are asking regulators to impose a fixed monthly charge on consumers, rather than just let them pay variable tariffs.
Con Edison will give back about $6 million to its customers for part of the fixed monthly charge for the delivery of electricity.
Again, some subscribers seem to prefer the simplicity and predictability of a fixed monthly charge, even though they may end up paying more as a result.
Not only do they want to eliminate increasing-block pricing, they want to further reduce the incremental energy price by implementing a fixed monthly charge on each customer, aimed at covering some of the costs of retail distribution, metering and billing.
The structure of the deals varies by company and state, but the overall approach is generally the same: Customers agree to pay a fixed monthly charge or rate for all the solar power produced, and the companies that finance the systems pay for the installation and take the value of any tax breaks or renewable energy credits for which the customer would ordinarily be eligible.
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Not surprisingly, solar advocates love IBP and hate fixed monthly charges.
As some US states try to impose fixed monthly charges for solar power, financial analysts at Morgan Stanley warn that where electricity rates are relatively high, this could push a mass exodus from the national grid, with solar customers buying lithium batteries to store their solar energy, especially in the west, southwest and mid Atlantic areas.
We decided to use fixed monthly charges of US$2.78 for water [ 23] and US$6.50 for electricity [ 24] based on the prevailing rates in the study area.
That is, a fixed monthly late charge of $20 was allowed by the courts, while $50 on a rent of $405 was deemed excessive.
Now, as part of Mr. Nakahata's deal, the Bells may increase one of the fixed monthly fees they charge consumers, so from an overall revenue standpoint, the deal is supposed to be a wash for the Bells.
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