What If Electric Service Was Like Internet Service?
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It is too often that we take our essential utilities for granted. In the electric utility business, customers just count on the lights turning on every morning when they get up, and it doesn’t ever really enter into their minds that it might not be available. The availability of reliable and affordable power is just a backbone of our country and economy, with the best electric utilities having reliable service over 99% of the time.
The new utility in today’s economy is internet/broadband service, and it is becoming nearly as essential as electric service. The need for electronic communication for businesses and consumers is growing exponentially every year, and that growth is only expected to continue. The result is a growing demand for fast, reliable and affordable broadband, but it seems for too many people aren’t able to get the service they demand. Even in urban areas where residents have two or more options for Internet service, many customers are still faced with slow, unreliable or expensive service. If broadband service is almost as important as electric service, shouldn't the goal be they have the same level of service? What if electric service had the same issues that broadband service sees? Let’s take a look at some of the issues a home or business would face if electric service had the same level of service most private broadband providers offer their customers.
Availability. The best electric service is offered mostly in dense areas, where it makes business sense for a private company to make enough of a profit. Suburban areas mostly have pretty good service, but too often new growth areas may only get electric service years after an area has seen enough development come in. Electric service is spotty in rural areas, with some homes using a generator or solar panels to have some electricity for only parts of the day.Speed. Most homes have access to today’s standard of 110 and 220 volt electricity. However, many still only have 110 volt service that allows many appliances to run, but they can’t all run at the same time or else they all lose a little power. The homes that don’t have access to 220 volt service aren’t able to have large appliances like air conditioning, stove, oven, or electric water heater.Reliability. Electric utilities advertise service as "up to" certain levels because they can’t guarantee what the level of service will be at any one address. Daily in peak times in some neighborhoods, even in homes that have access up to 110 and 220 volt electricity, lights may dim a little and some things like a microwave or television only work intermittently. Some homes run off of generator or batteries, and therefore have intermittent service. Overall, nearly every customer, whether residential, commercial or industrial, service is just expected to be regularly unreliable at times because of too much power be used or for some other unknown reason.Amount of usage. Electric providers that may provide 110/220 have caps they put on each home or business. Once the cap is reached, the home or business may see it’s power reduced. The caps are in place to reduce strain on the system, and so investments in the system are only done when absolutely necessary.Pricing. Many factors would go into what a service bill and pricing looks like. What are the terms and length of the contract when one signs up for service? Does the contract offer an introductory rate that increases greatly after a certain period? Are electric rates based on what the actual cost of service or what the market will bear to maximize profits? In short, electric rates are not based on what it costs to offer the service, but rather to make as much money off customers as possible.Future investment and service. Perhaps the biggest uncertainty is who will get service that doesn’t already have it, who will get their service improved, and when will this happen? Homes and businesses that have poor electric service ask for better service, but they often face a brick wall of answers or cost prohibited estimates to get basic service. Public providers and communities are prohibited from offering service to many, particularly those that need and demand it the most. Essentially, electric customers are stuck with whatever level of service their provider wants them to have.
It took many decades of investment to get electric service to the today’s level of reliability and dependability, and in the Tennessee Valley public entities like TVA and municipal electric systems made the investments where private provider wouldn't. This public power model provides a road map for broadband service: where private providers are not willing to offer broadband service at the speed, price, reliability, competitiveness and availability that local communities want, local power providers like municipal electric utilities should be an option. Local communities need as many options as possible as they work to making themselves attractive for investment and growth, and good broadband service is now essential for these communities as they work to improve themselves. One day broadband service will be as reliable as electric service, but we have a long way to get there.
