POINT/COUNTERPOINT: Don’t oversimplify the energy crisis
My latest for the Gazettes/Colorado Politics.
Below is my January column for the Gazettes/Colorado Politics.
Your utility bill is higher than it has ever been, and you see a compelling chart (perhaps in a local paper or on your nightly newscast) showing that your utility company has made record profits.
The mystery is solved! Grab your pitchforks!
Not so fast.
I’m reminded of the classic social media memes that go viral every so often about a CEO’s hefty paycheck in comparison to the wages they pay. Clever, but not convincing. Once you divide up that CEO’s salary amongst their workers, you realize the five cents added to each worker’s paycheck will not go very far.
Similarly, a single chart about a company’s profits cannot begin to tell you about the costs of energy production, transportation and infrastructure.
The energy affordability crisis is complex. The bulk of the increase in your heating bill is because of increased natural gas prices — of which many utilities do not mark up the price. We are in the middle of the coldest winter in decades, which puts additional strain on energy infrastructure, requiring additional servicing, and all during a period of national inflation that hasn’t been seen in decades. Oh, and if you haven’t heard, Russia invaded Ukraine.