BajaNomad

CFE raises rates!

pacificobob - 4-14-2020 at 10:23 AM

4% ! WTF? How untimely when so many can use some financial relief.
The CFE bill represents one of many local families that i know larger monthly expenditures.

[Edited on 4-14-2020 by pacificobob]

BajaBlanca - 4-14-2020 at 04:40 PM

Terrible.

bajatrailrider - 4-14-2020 at 04:50 PM

Wow killing me now at 30 bucks every two months. I have 4 welders too.

John Harper - 4-14-2020 at 04:55 PM

Need to maintain ROI somehow now that energy consumption has dropped off. Sell less for more. To a captive audience.

I switched to "time of use" rates recently at SDGE. It will be interesting to see my next bill, as overall energy consumption has dropped significantly, which should mean more utilization of lower cost energy versus high cost energy (peaker plants, etc.) sources. That's if you believe the propaganda about "time of use." Somehow, I doubt that will happen. We shall see.

John

pacificobob - 4-14-2020 at 05:05 PM

Quote: Originally posted by bajatrailrider  
Wow killing me now at 30 bucks every two months. I have 4 welders too.


I didn't intend to present this story as one concerning relativity well off expats.
Im just seeing locals i know sweating the light bill. I know families in modest houses....TV,couple of fans, fridge, washer out back...and they have enormous bills....easly 40% of the net household income.
A 4% increase is a big deal......for some.

Alm - 4-14-2020 at 05:32 PM

A family in modest house with TV,couple of fans, fridge and washer probably pays under 200 pesos a month.
200*40%= 80 pesos is their monthly household income?

Bruce R Leech - 4-14-2020 at 05:34 PM

what is your source on this

surabi - 4-14-2020 at 05:58 PM

Quote: Originally posted by Alm  
A family in modest house with TV,couple of fans, fridge and washer probably pays under 200 pesos a month.
200*40%= 80 pesos is their monthly household income?


Way less than that. I run a fridge, washing machine, lights, fans, toaster, blender, two industrial sewing machines and an iron and my recent bill was 134 pesos for 2 months. It's around 200 for 2 months in the summer when I have all the fans on all the time.

[Edited on 4-15-2020 by surabi]

AKgringo - 4-14-2020 at 06:05 PM

At todays exchange rate, 200 pesos equals 8.46 US!

Alm - 4-14-2020 at 06:44 PM

My typo, sorry: if 200 pesos bill = 40% of income, then income is 500 pesos. That is, if they pay 200 pesos - I tried to be generous here :)

They spend on TV shows more than that.

4% increase on 100 pesos bill is 4 pesos. Mexican rates are cheap even for the poor (or, should I say - especially for the poor). Modest households without AC are sweating their CFE bill for no reason, I'm seeing this all the time. Older people are naturally paranoid, remembering the times when you could buy a whole chicken for 10 pesos but forgetting that it was many decades ago.

John Harper - 4-14-2020 at 06:48 PM

I think the question is, why do they need to raise rates 4%?

We are not in an inflationary economy, neither US nor Baja. Demand is way down from big users like manufacturers, breweries, distilleries, resorts, restaurants, etc. Same with petroleum.

John

AKgringo - 4-14-2020 at 07:48 PM

Sounds like reverse economy of scale. Although the cost of production of the electricity is lower for each megawatt, they aren't selling enough megawatts to make their target income.

The local water utility did a similar thing here in Nevada County. During the drought years, they adopted a program which penalized heavy water use by charging higher rates per unit as the volume increased.

People responded well to the water conservation plan and cut way back on consumption. NID now plans on raising the rates again, because they are not selling enough water to hit their revenue target!

mtgoat666 - 4-14-2020 at 07:56 PM

Quote: Originally posted by AKgringo  
Sounds like reverse economy of scale. Although the cost of production of the electricity is lower for each megawatt, they aren't selling enough megawatts to make their target income.

The local water utility did a similar thing here in Nevada County. During the drought years, they adopted a program which penalized heavy water use by charging higher rates per unit as the volume increased.

People responded well to the water conservation plan and cut way back on consumption. NID now plans on raising the rates again, because they are not selling enough water to hit their revenue target!


Public utilities operate differently than supply/demand market pricing. Reality is you public utilities are necessary,... and they got to be paid for. If you are comfortable to rich, or really dirt poor, you can probably be happy living off the grid.
Public utilities got to maintain revenue for operations even in cases where total demand is falling.
If you don’t like it, then go off grid. Good luck!

mtgoat666 - 4-14-2020 at 07:57 PM

Quote: Originally posted by John Harper  
I think the question is, why do they need to raise rates 4%?

We are not in an inflationary economy, neither US nor Baja. Demand is way down from big users like manufacturers, breweries, distilleries, resorts, restaurants, etc. Same with petroleum.

John


Demand down, so falling sales, but cost of O&M stays the same,... got to make up revenue to cover expenses...

bajatrailrider - 4-14-2020 at 09:55 PM

Fake news who started this

pacificobob - 4-15-2020 at 04:29 AM

https://www.theyucatantimes.com/2020/04/cfe-raises-electrici...

pacificobob - 4-15-2020 at 04:31 AM

https://mexiconewsdaily.com/news/cfe-hikes-up-to-300-threate...

pacificobob - 4-15-2020 at 04:33 AM

https://www.theyucatantimes.com/2020/04/cfe-raises-electrici...

paranewbi - 4-15-2020 at 04:54 AM

Quote: Originally posted by AKgringo  
Sounds like reverse economy of scale. Although the cost of production of the electricity is lower for each megawatt, they aren't selling enough megawatts to make their target income.

The local water utility did a similar thing here in Nevada County. During the drought years, they adopted a program which penalized heavy water use by charging higher rates per unit as the volume increased.

People responded well to the water conservation plan and cut way back on consumption. NID now plans on raising the rates again, because they are not selling enough water to hit their revenue target!


Exactly the same happened in San Diego. The system set up to deliver massive amounts of water (use) still needed to be maintained and administered to when usage went down during the drought. You can't shrink the costs of providing when the need decreases in a public system.

The same is happening now in most cities. Revenue from sources (taxes...hotels, sales, etc.) is falling as we all hunker down in fear. Yet, the government that was supported by those systems must (fallacy based on fear) be maintained (fed it's bloated meal) because we (think) we need them to tell us how to be herded.

Same ol' the less you need, the more it costs.
Actually the reverse of reality.

[Edited on 4-15-2020 by paranewbi]

John Harper - 4-15-2020 at 05:16 AM

Quote: Originally posted by mtgoat666  

Demand down, so falling sales, but cost of O&M stays the same,... got to make up revenue to cover expenses...


My second comment was merely a rhetorical question, to focus back on the original issue.

Read my first comment, that's what ROI is. Return On Investment. You have an incredible grasp of the obvious.

John

[Edited on 4-15-2020 by John Harper]

John Harper - 4-15-2020 at 03:44 PM

Quote: Originally posted by memin.pinguin  

"To Do is To Be" - Nietzsche
"To Be is To Do" - Kant
"To Be or Not to Be" - Shakespeare
"To Be Do Be Doo" - Scooby Doo
Take your pick - Have a nice day!! ;)


I'll take this one:

"Do Be Do Be Do" - Frank Sinatra

John

In This Time of Trial and Test of Faith .............

MrBillM - 4-15-2020 at 06:26 PM

Pondering the greater meaning of life, our place in the Universe and what awaits us beyond the Pale:

What if "The Hokey Pokey" IS what it's ALL about ?

John Harper - 4-15-2020 at 06:52 PM

Well, my SDGE bill is substantially lower this period. On cursory examination, it looks like gas prices and electricity generation prices are lower. Seems to fit with the theory of how "time of use" demand pricing should function. I'll try to do a "deep dive" into the numbers in the next few days. The gas prices seemed abnormally lower, so there may be another issue.

I have plenty of time to do some analysis since school is closed, and JZ is apparently afraid to hire me as his CFO.:?: His loss, not mine. I can always teach him how to handle a firearm.

Paranewbi should be getting his bill today, maybe he can add some data. DK, you live in SD County, what's with your SDGE bill? More data, more accuracy.

John

P.S. I've also read (Left Angeles Times!!) that we all should get car insurance rate reductions since risk factors have decreased due to the stay at home orders. Of course, the insurance industry is against that. Go figure.


[Edited on 4-16-2020 by John Harper]

David K - 4-16-2020 at 07:38 AM

Quote: Originally posted by John Harper  
Well, my SDGE bill is substantially lower this period. On cursory examination, it looks like gas prices and electricity generation prices are lower. Seems to fit with the theory of how "time of use" demand pricing should function. I'll try to do a "deep dive" into the numbers in the next few days. The gas prices seemed abnormally lower, so there may be another issue.

I have plenty of time to do some analysis since school is closed, and JZ is apparently afraid to hire me as his CFO.:?: His loss, not mine. I can always teach him how to handle a firearm.

Paranewbi should be getting his bill today, maybe he can add some data. DK, you live in SD County, what's with your SDGE bill? More data, more accuracy.

John

P.S. I've also read (Left Angeles Times!!) that we all should get car insurance rate reductions since risk factors have decreased due to the stay at home orders. Of course, the insurance industry is against that. Go figure.


[Edited on 4-16-2020 by John Harper]


I will try to gather the data for you, we only pay SDG&E for the natural gas they supply. Our electric bill is paid to the HOA here which has a large solar panel system to help with the bill, so they say! All our lights are LED, too.

AKgringo - 4-16-2020 at 09:08 AM

Quote: Originally posted by John Harper  


P.S. I've also read (Left Angeles Times!!) that we all should get car insurance rate reductions since risk factors have decreased due to the stay at home orders. Of course, the insurance industry is against that. Go figure.


Last week I was notified by Geico that a 15% credit will be applied to my policy when it is renewed.

BajaMama - 4-21-2020 at 06:47 AM

Many car insurance issued rebates. BTW the CFE rate hike is completely fake news.

pacificobob - 4-21-2020 at 07:07 AM

Quote: Originally posted by BajaMama  
Many car insurance issued rebates. BTW the CFE rate hike is completely fake news.


One has to wonder about the motivation of those who make the effort to fabricate false statements when the benefits of doing so are not immediately obvious.