Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at intelligent and rational individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

"Observe that the 'haves' are those who have freedom, and that it is freedom that the 'have-nots' have not." Ayn Rand

"The virtue involved in helping those one loves is not 'selflessness' or 'sacrifice', but integrity." Ayn Rand

10 January 2014

Soaking Electricity Customers with Taxes in Maryland

I just received my January electricity bill for electricity used in the 33 days from 5 December 2013 to 7 January 2014 for my laboratory.  The total BG&E bill was for $158.20, which was a very small bill compared to months when we are running air conditioning.  Our heating is with natural gas.  The bill breaks down as follows:

BG&E Distribution and Account Services = $119.92
Electricity Generation Charges = $16.08
Maryland Taxes = $22.20

My laboratory paid 1.38 times more in taxes than it paid for the actual generation of the electricity we used!  Taxes were 14.0% of my total bill.

Of these taxes, the biggest single tax is the Maryland Universal Service Program charge which is a flat monthly fee of $10.29 to provide welfare aid to the poor.  Interestingly, this fee of $10.29 is also subjected to the 6% sales tax, so this is really a charge of $10.91 each month.  Note that this is discriminatory against very small businesses, since it is a fixed fee.  It is also, as are other charges on the bill, a disincentive to reduce one's energy use since it is not proportional to energy use.

Another tax is the Francise Tax, which is proportional to the number of kWh used.  That tax is also subjected to the 6% sales tax!  The remaining tax is an Environmental Surcharge, which was the only tax not subjected to the 6% sales tax.

The 14% taxation is not the whole story.  The state of Maryland buys into the same ideas on energy that Obama does.  Gov. Martin O'Folley does everything he can to increase energy costs.  BG&E and electricity generation companies have to pay the high costs of the solar and wind generation schemes favored by the Progressive Elitists, as well as biomass fuels.  Fortunately, these increased costs have been offset by the lowered cost of natural gas and a program which allows one to buy electricity supplied by companies other than BG&E.

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