Utilities profit from lower electricity sales

Duke Energy Co. reached a deal with environmental groups Friday that allow the power generator to charge customers more money even if they use less electricity. As odd as that may sound, it’s part of a broader push to make utilities, and customers, even more efficient. Here is how a typical program might work:

— Historically, the more electricity utilities sold the greater their profit.

— Utilities now want to separate that traditional tie by charging customers more for electricity and using most of the money for programs that help customers lower consumption.

— Utilities pocket some of that rate increase as profit and spend the rest on becoming more efficent. That, as the plan goes, means fewer new power plants and power lines, which customers would have had to pay for through rate increases.

— Rates initially will go up, yet utility bills would rise faster in the future without new efficiencies in the system.