I think I want to start an electrical utility. After researching pricing plans, I like the following:
- Pre-paid, flat-rate pricing, say $199.95 per month for 1,500 kWh of home electricity usage. If you exceed the monthly allotment you pay an additional $0.99 per kWh.1
- $0.30 to recharge a AA battery. If you recharge a lot of AA batteries you can pay $9.95 per month for unlimited AA battery charging. Other sizes of batteries will have different rates.
- $9.95 per month to connect a work laptop to your home electricity service.
- $9.95 per month to use an extension cord to “tether” other devices to your home electricity service.
You may wonder why I would propose such a complicated pricing plan.2 Clearly, you don’t understand these charges are necessary to cover the costs of maintaining and upgrading the electricity infrastructure.
It makes total sense to me.3 After all, I just paid my cell phone bill.
2You might note that it (1) has many customers bearing the cost for the few who use the most electricity, (2) doesn’t encourage conservation, (3) charges differently for different uses of the same electricity, and (4) has outrageously different pricing with no relationship to how much electricity is used.
3Most important, let’s not just charge by the kWh.