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Renewable Energy

Before and after wind and deregulation

Wind’s Dramatic Impact on Pricing – In Two Directions – Why?

By Energy Rant One Comment
This is the second in a two-post series on electricity prices as impacted by deregulation and renewable energy penetration. Last week we explored deregulation in Regulation v Deregulation in True Color. This week, we examine the effects of increasing shares of renewable energy (like wind) being added to the grid. Again, the source for all this information is the U.S. Energy Information Administration, so you can fact check away! To recap, we are examining four regional markets as follows: Regulated Midwest states of South Dakota, Minnesota, and Iowa Deregulated Midwest states of Illinois, Ohio, and Pennsylvania Deregulated Texas Deregulated and…
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Regulation v Deregulation in True Color

By Energy Rant 3 Comments
Recent projects have led me to examine how deregulated electricity markets work. Since I am naturally curious, I wanted to investigate differences between electricity price performance of deregulated states versus those of regulated states. This week we examine the impacts of regulation/deregulation on pricing, and next week, we will look at the impacts that renewable energy has on pricing. Data used come from the Energy Information Administration. Figures lie, liars figure, but Jeff merely presents all data available for you to decide, pound your chest, or cry. That is your prerogative. Often data which do not support a narrative is…
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The PG&E Bankruptcy – Scorched Earth

By Energy Rant No Comments
This blog features dozens of posts regarding the nuances, obscurities, and upside down world of the public utility industry. To wit, every other industry provides things people need or want at the lowest possible price in competition with dozens or even hundreds of competitors or alternatives. Conversely, electric utilities with transmission and distribution systems are fully regulated with an obligation to serve all customers. Those customers have no other choice. The show must go on. To financially destroy a utility serves no one but attorneys. This post is about the bankruptcy and viability of the nation’s largest investor-owned utility, Pacific…
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Fascination: Battery Storage Increases Carbon Emissions

By Energy Rant One Comment
“Casual observers are often wrong.”  Why didn’t I think of this for a tagline?  It is a line inked by utility veteran Charles Bayless in the March issue of Public Utilities Fortnightly.  His article, “Does Storage Increase Carbon?” is the basis of this post.  By the way, many politicians make policy and law without knowing anything about that which they are making policy or laws – as though engineers, scientists, and the private sector simply aren’t trying.  Sure.  We’re not trying to cure cancer or produce affordable and reliable zero-emission energy.  No.  There would be no money or fame in…
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Percent GHG Savings

Ethanol – Where Physics, Politics, and Emission Limits Collide

By Energy Rant One Comment
I recently researched many attributes and market effects for liquid fuels for a project we are working on, and like my digging into the wind and climate studies, this research results in several findings. This post covers ethanol and gasoline blends. A future post will cover fuel cost and impacts on electric vehicles and utilities. My journey began with the ethanol market. We produce a lot of corn-derived ethanol here in the northern plains. By 2020 there may be a big demand for Midwest ethanol as California caps the carbon intensity of its liquid fuels. The cap, part of their…
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Maxed Out Renewable Energy

By Energy Rant One Comment
We’re leading off with Texas once again – the petri dish mixing massive shares of wind energy, the nation’s largest free-market for electricity, and commensurate spikes in cost. See the $900 per gallon kWh. Fatefully, on July 27, 2018, the Public Utility Commission of Texas (PUCT) rejected a proposal for 2 GW of new wind generation proposed by American Electric Power. For perspective, that would be about 700 giant turbines, although I’m not sure of the exact capacity of these behemoths today. Wind’s Speed Limit Possibly, the PUCT realizes there is something a little weird with a market providing long…
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trailing loads and forecasts

Mindbender: Efficiency Thrashes Supply

By Energy Rant 2 Comments
A couple months ago in Outside the Boxer, we considered efficiency as a resource to be compared with supply-side resources. In May, we challenged minds with We All Un-Bundle, suggesting that utilities get markups for services delivered over their infrastructure. Let’s advance these concepts! Efficiency – A Utility Perspective Utilities are slow to change for many reasons: Every interest group and intervenor wants more from them. They are rewarded for 30-40 year investments and not breakthroughs like iPhones. Customers demand reliability, resilience, and low cost above all else. Utilities have captive customers with few (but growing) options. They deliver a…
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Question: Carbon and Benefits? Answer: Efficiency

By Energy Rant 3 Comments
“Don’t drink the Kool-Aid” and being as objective as possible are how I roll. If you feel otherwise, by all means, let me know. Driving across Southern Minnesota recently, a billboard like the image nearby caught my eye. I thought this would be worth looking into to see what they have to say. As I expected, the paper it promotes is jaded against wind energy. But what arguments do they make? Are they legitimate? Wind is Fuel When thinking about wind-driven power generation, it has a lot of hurdles to overcome to be cost-effective. One near the top of the…
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Untold Story of Disappearing Energy Jobs

By Energy Rant No Comments
On the subject of electricity generation sources and price, I’ve been reading numerous articles from various bona fide sources and started connecting dots. Public Utilities Fortnightly (PUF) has written about historically low electricity prices, as a percent of GDP or household spending, numerous times in the past year. Electricity price escalation has not kept pace with the consumer price index. As of last August, Steve Mitnick, of PUF shared data, which I plotted on the chart below.A year ago, I wrote about this topic as well in Low Electricity Prices - For How Long?. In that post, I explained how…
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Blockchain Energy Authentication and the Cheaters’ Nightmare

By Energy Rant No Comments
One sign of a good teacher is how many things stick with a student through life. As I thought through the Bitcoin maze, I thought of the following gems I collected from my personal finance instructor: Anything is worth what someone else is willing to pay for it (I add my own to this – everything is for sale if the price is right). You will never grow broke taking a profit. If the price isn’t zero, it can always go lower. The most likely price in the future is the current price. Those statements apply mostly to securities, and…
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