So I've been contemplating for a while. How is it possible that I keep taking more and more measures to assure that I conserve electricity but my bill doesn't reflect that. Well one day I was sorting through a stack of recent newspapers and I believe i got some of my answer.
I read an article about how AEP is planning to raise its price by 15% each of the fallowing three years. AEP is doing this because they are saying that the price of coal is going up. They are also claiming that they need the money to look in to other ways to make energy. People don’t understand why they need to do this. Last year’s profit was near $1.1 billon. They are not just breaking even; they are making a big profit. Also with the economy going the way it is its going to be harder for people to pay for it.
AEP is a monopoly in central Ohio. For one thing there is no other way for people to get power in the middle part of this state. People are stuck paying what they are told to pay. The only thing that people can do is move if they don’t like it or try to put their own form of power up in their back yard or on their house. AEP is not raising prices by huge amounts in one move but they are slowly making it more expensive and by doing this they are able to keep their mega profit. This is not a set in stone rise in price. AEP is in court right now trying to find out if the government will let them do it. The government is trying to keep them from overcharging the users. AEP knows that no matter what happens there will likely be no new competition. The prices and regulations to just start a company are way too much. To change the infrastructure is a huge undertaking and to persuade long time AEP customers to leave for a new company is difficult. AEP is also developing new and different was of making powers, and plans to keep building and growing with the times. They are also trying to keep their service reliable, so that we don’t have times where we don’t have power. This is how AEP has a monopoly with electricity in the central Ohio area and I do not expect that will change any time soon.
It is annoying, stop making me pay more and more for using less!!!!!!
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I wanted to start off by saying I think this is a great post. I myself have been wondering why my electricity bill has been rising slowly over the past year. It sure would be nice if there was an anti trust act placed on AEP because being a poor college student it sure is annoying seeing my electricity bill keep rising when I keep making attempts to cut costs. It would be great to see another electricity company move into Columbus and see some competition and price wars take place.
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