So why do we still have the meter service? If you
ask the electric company, they predictably complain
about the evil meter readers union. Well, I'm here to tell you,
most unions in this town are so horrifically corrupt
and toothless, that they are kept around _only_ to
provide cover such as above. The actual reason is
very simple, if you can buy electricity at 4 cents
a KW/H off peak and sell it at 16 cents KW/H,
WHY IN BOGS NAME WOULD YOU EVER WANT TO CHANGE THAT SYSTEM???
That hypothesis makes zero sense to me. It is always better for a company to have pinpoint control over prices. The more knowledge of company has of demand and customer behavior, the more it can optimize profit. The price of oranges or fresh corn at a grocery store varies from day-to-day (and sometimes from hour to hour) depending upon crop yield, futures and wholesale prices. The grocery store optimizes the price to sell many oranges, make the most profit per orange, and to prevent spoilage from unsold goods. The electric power company has the same kinds of problems. It has billions of dollars worth of equipment that sits idle for much of the day, costing interest. Then at peak hours a does not have enough equipment and it has to buy electricity from other power companies. The power company could make a much better profit if it could fine-tune prices to affect demand, and also if it could reach out and turn off a few hundred thousand air conditioners by remote control the way it does in California.
I think we still have meter service because the power companies are not managed well and they do not employ the latest technology to optimize profit.
The cost of collecting data from the meters is only a small percent of total expenses because meter readers only come around two to four times a year, as Nagel noted. Your bill is based on your previous history consumption. I do not see why anyone objects to this. Electric power consumption is usually quite predictable. The power company may overcharge you during some quarters, but it is bound to undercharge you in others. Occasionally after you have been overcharged you get a statement saying you own no money, but this seldom happens to me.
- Jed
