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I disagree with your analysis. By not charging the ratepayers for theI get really tired of this one as well--(and the percentage is falling
external costs, you reduce the incentive to conserve. Thereby driving the
cost up for everyone. Here in southern California we have tiered rates for
residential electric consumption to encourage conservation.
US energy policies have led to profligate consumption of energy. We have
about 5% of the world's population, yet we consume 25% of the world's
energy resources.