Is the Energy Crisis Over?

In desperate times, we do what we can to address the immediate crisis. This past summer the high cost of energy initiated a crisis mode. Americans drove less, spent less, and elected a new president with lofty energy promises.

Today, gasoline prices are down under $2 a gallon and the analysts say we consumers are going back to our trucks and sport-utility vehicles.

Maybe somewhere folks are buying trucks and SUVs. But I think most of us recognize that this time of low gasoline prices is only buying us time.

If this time is not used to create a more energy conservative and energy efficient lifestyle, we only postpone even greater energy crises.

While we may appreciate the new administration’s efforts, in our heart-of-hearts we know governments alone cannot fix our energy predicament.

Even Mr. Chu, who will lead the Energy Department in the new administration, finds himself between a rock and a hard place. It’s one thing to dream the dream (i.e. lofty political promises) but it’s another thing entirely to reconcile policy with daily realities.

Creating a more energy efficient world really begins with us. You and me. The people who do the living and buying and driving on this planet.

We’ve been given a breather. Fuel prices are down. Will we use our time wisely?

How will you live, spend, and drive in 2009?

How will you heat and cool your home in 2009?

Join our energy conservation challenge beginning in February.

My home utility bill came in January 2008, with a friendly little note saying that my power cooperative was,

“…ringing in the new year in 2008 by reducing rates…by $0.0015 per kilowatt-hour beginning with bills rendered after January 1.”

Nice!

In May, my energy bill came with a little note attached from the utility cooperative. The attachment informed me that my power provider had increased rates,

“…because of increases in wholesale power costs, bills for all rate classes reflect an increase of $0.01098 per kilowatt-hour.”

What happened to the ringing in the New Year?

My July home utility bill came with another note attached advising me of a rate increase. This time it read,

“…increased their fuel charge due to rising natural gas prices. To recover this increase in the cost of power we distribute to members, we have increased rates for residential and most other rate classes by $0.0106 per kilowatt-hour.”

I know you’re home energy bill is up too. Some places experience greater increases than 21%.

But here’s the point.

When the cost of doing business increases for the energy companies, they pass that increased expense on to us, the customers. “To recover this increase in the cost of power we distribute to members, we have increased rates…”

Now, Mr. Obama wants to tax big oil company profits. The best I can ascertain in the murky political waters is that this tax will be used to give Americans a refund of $500 or $1000 (depending on marital status) to help with our fuel costs.

I like rebates as well as the next person. And I think big oil companies should be doing their part to bring relief in the current energy crisis.

But think about this just a second.

If big oil companies get hit with a huge tax, who do you think they will pass that expense on to?