Monthly services for homeowners November 2 2023

Monthly Services worth the money.

My electrical service is the often beguiled PG&E. My gas needs are propane and my water is from a well. All three have inelastic pricing which means I have no bargaining power with any of the companies that provide these essentials.

Since the cost of these things are going up in price along with everything else, the budget gets a squeeze with every new bill in the mailbox.

Years ago when my electrical bill hit over $700.00, I decided to seriously adopt some practices to reduce it. The old PG&E slogan “Kill a watt” came to mind and we began shutting off the lights when we left the room, unplugged all those little black converter boxes the kids had for toys they never used, turned down the automatic timers that controlled various lights, pumps and electrical equipment, and generally reduced our power consumption during high peak times whenever we could. As a result, the bill dropped about $200/mo. A victory for sure and one that not only saved me money but also a tiny slice of the planet.

Fast forward to today and I have Tesla solar array that cost me nothing. Back ten years ago or so, the company was called Solar City, before Tesla absorbed it. The deal was Solar City would put an array on my house for free, and I would pay them $.16 a kWh for everything it generated.

It is not large enough to power the entire house, but the way PG&E charges you, called the tier system, they charge you more per kWh the more power you use. The Tesla panels therefore help knock me down the costs to the lower tier usage and therefore cheaper levels. This makes the $.16/kWh I pay Tesla a bargain.

I ended up saving about $150 a month. Not great but I had absolutely had no out of pocket expense (which would have been about 30 grand) and Tesla is responsible for its maintenance for life. They monitor it 24hr/7 and if something goes wrong, they know about it immediately and send someone out to fix it, no charge.

As for propane, well on that one I am stuck. I tried switching companies every so often for the teaser rate, but changing tanks every time I did that was a pain. And the initial deals they offer you to switch expire quickly so you are soon right back paying regular prices.

I could own my own tank, but besides being a hassle to do so, I would then be on the hook for its integrity and safety and that I am not interested in.

As for water, I have a well. One would think wells provide free water and they do. It’s the equipment to get the water out of the well and to the house that costs. Obviously the pump uses electricity, and the well pump is an expensive little bugger. About every 7 years I lose a pump or its motor and then it needs to be pulled out and replaced. I have my home warranty to cover that, but the warranty costs me as well.

I also need a water softener to make the acidic water from the well compatible with my pipes. The water softener needs bags of salt every other week and calcite every 6 months. It breaks every so often so there is more cost there. I lose a water heater every 4 years or so no matter what I do. The water tests neutral and they tell me the softener works but I still lose water heaters. My toilet and sink valves that go into the wall also rot out every few years and I have a couple of dozen of those. More fodder for my home warranty, which in itself costs money.

To pay the ever increasing costs of these essentials are just a small part of what us home owners have to deal with. Doing the best we can to conserve, I am kind of like you.

I have to work a little harder and get up a little earlier to afford to run the homestead at today’s rates.

In conclusion, the cost of everything we need is skyrocketing beyond belief but you already know that don’t you?

Just know that I too, feel your pain.

It is what it is and we deal with it.

“Watching the markets so you don’t have to”    

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(As mentioned please use the below disclaimer exactly) THANKS   (Regulations)    

This article expresses the opinion of Marc Cuniberti and is not meant as investment advice, or a recommendation to buy or sell any securities, nor represents the opinion of any bank, investment firm or RIA, nor this media outlet, its staff, members or underwriters. Mr. Cuniberti holds a B.A. in Economics with honors, 1979, and California Insurance License #0L34249 His insurance agency is BAP INC. insurance services.  Email: news@moneymanagementradio.com