The price of power…

Apparently in Texas you can sign up for a “wholesale” electricity plan. Just like a loan with a floating interest rate, it could be a real benefit to the consumer when rates are low. The catch is, the interest rate for loans or the wholesale cost of electricity changes over time. Sometimes it changes both dramatically and quickly.

Signing up for the “wholesale” plan makes eminent sense when gas and oil is flowing and prices are low. All it takes, though, is a single unexpected event to make such a decision catastrophically wrong. It’s the inherent risk of pinning your plans on a floating rate that’s governed entirely on the vagaries of supply and demand in a potentially volatile marketplace.

While I feel badly for the people who woke up this week to a $16,000 bill for electricity, I presume the contract they signed included a pretty large warning that price moved both up and down and often does so with great rapidity. I felt sorry, too, for people who signed up for zero percent mortgages only to realize that when their mortgages rest to the “real” rate they couldn’t afford both the principle and the interest.

In both cases, these are people who willingly bypassed traditional service agreements or mortgages in favor of “exotic” options. The low up-front cost of exotic options, even if no other explicit warning is made, should be a clear indication to the average consumer that they are assuming a greater than normal degree of personal risk. Both are just one step better than walking in to the local casino and putting your month’s mortgage or rent payment on red and hoping for the best.

Though I feel sorry for both groups, I don’t feel any more sense of personal responsibility to bail out electricity consumers who made bad choices than I did for bailing out homeowners who took on unreasonable levels of debt. Expecting to enjoy all the benefits of low prices without encountering the corresponding negative possibilities smacks of immature thinking. Constantly protecting people from the natural consequences of their own actions clearly hasn’t done us any favors, as it seems no one has taken any of the lessons to heart. 

Now because I’m not a complete bastard, I could be convinced that low-interests emergency loans for those needing relief is a reasonable idea, but simply wiping out legitimate debt because it’s politically expedient sends an appalling message. Mine won’t be the popular opinion, of course, since no one wants to be responsible for themselves and politicians don’t win votes in this modern world of ours by expecting anyone to live up to their personal obligations when a billion dollar bailout is available. So, really, those whole post is about nothing more than yelling into the void.

Picking easier…

With of the ludicrous cost of cable television I’ve toyed off and on for about a year with cutting the cord and trying to cobble together a collection of streaming services that would get the job done. After some exhaustive research, the real problem became the fact that to get all of my non-negotiable programming I was going to end up needing essentially all the streaming services.

I’m grudgingly forced to admit that cost not withstanding, cable is just the most convenient way of getting what I want. Getting those 40 channels means I end up paying for 300. As much as I hate writing that monthly check, I’m resigned to the fact that I’m just going to go ahead and keep paying for the convenience of having it all piped in through the same service.

For the better part of a decade I’d been living with my old 40-inch 780p plasma screen in the living room. Its picture quality didn’t justifying the full HD experience and I’d always resisted handing over the extra $10 a month for HD channels. The 58-inch monstrosity now residing in my living room, though, made standard signals look like absolute rubbish. So I gave in and took a Saturday side trip to my “local” Comcast storefront.

I have to confess the swap out to HD boxes all around was quick and easy. The truth is, I’m tremendously impressed with the picture quality that’s getting sent over the wire. I’m impressed enough at least to keep paying the bill until a real industry disruptor comes along.

I set out last weekend to make my life cheaper and easier and was forced into a choice between the two. Under those circumstances I’m going to pick easier just about every time.