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I think you know, "Energy" is both.

Cost of goods and service by resource type are bundled in consumer (business or residential) price(s) as if to reflect discount scale economies enjoyed by the utility provider.

Electricity is a "energy" commodity (goods). The amount and quality (e.g. timed demand, generator fuel) consumed are subject to variable rates of the utility's cost structure. Consumer rents equipment to terminate delivery (service).

Gas and heating oil are "energy" commodities (goods). The amount and quality (e.g. grade) consumed are subject to variable rates of the utility's cost structure. Consumer rents equipment terminating delivery (NG service); consumer owns equipment terminating delivery (oil, propane, wood, other service).

Diversity is the key to economic and political evolution.

by Cat on Sun Feb 1st, 2009 at 06:04:06 PM EST
[ Parent ]
One thing I've learned over the years constructing Models is to find out and then use the Standard Analytical basis people in the particular industry use.  Otherwise you end up with a might fine, perfectly useless, piece of nothingness.

I see the argument going either way or, even, both.  

(Oh, please not both!)

by ATinNM on Sun Feb 1st, 2009 at 10:56:55 PM EST
[ Parent ]
LOL. "I see the argument going either way or, even, both." The argument whether or not to model real terms of business? That exercise is polemic. As is, ultimately, whether or not one's government permits individuals and firms "off-grid" energy generation.

"Energy" is both. The evidence is all around you. You have only to examine your monthly utility bills (to "discover" the values of variables of the supplier's model). To populate a database of rates, then deduce cost structure of one or more suppliers given prevailing commodity prices (e.g. spot, futures), requires some greater investigatory um rigor.

Diversity is the key to economic and political evolution.

by Cat on Mon Feb 2nd, 2009 at 09:02:22 AM EST
[ Parent ]

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