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Energy Rant

This is a satirical and at times humorous but critical commentary on energy efficiency issues of the day.

“Keep up the good work! I like the variety of topics; never boring. It's like a Box of Energy Chocolates.... you never know what you're gonna get!”

Mike MernickSenior Vice President, ICF
Jeff Ihnen
By In Energy Rant

Are You Serious About the Climate Apocalypse?

Washington Post headline last week: “World is on brink of catastrophic warming, U.N. climate change report says.” Wolf! Wolf! People…
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Sep 05
Love44

Electric Ratemaking Basics and Load Flex

By Energy Rant No Comments
In the last two Rant posts, we explored dated benefit-cost tests for energy efficiency and demand response programs and introduced flaws with dated ratemaking schemes. Both constructs are based on a century-old “cost of service” business model for monopolistic utilities. In a nutshell, the cost of service includes the debt and equity financing of generation, transmission, distribution, and operations and maintenance, which includes employees, fuel, storm damage repair, and arboriculture. Add up all those costs, including competitive investor returns on equity and debt, and then smear those costs as equitably as possible across the customer base. The sum of those…
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Aug 28
Love43

Modern Electric Rates from the Slide Rule Era

By Energy Rant No Comments
Last week, we looked at Total Resource Cost (TRC) tests that were developed decades ago to put a high value on avoided source energy costs. That was right for the time, but not today. I demonstrated that energy costs, mostly dominated by natural gas, are near historic lows, while zero-energy-cost renewables supply more electricity than coal-fired generation. Of course, renewable sources have zero source-energy consumption. Yet, utility commissioners are laser-focused on keeping electricity prices in check and maintaining the reliability of the electric grid. Electric Rate Basics Like the TRC, most utility rates (tariffs) are stuck in the 1970s. I…
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Aug 21
Love42

The TRC Is Calling – Has Anyone Seen 1979?

By Energy Rant No Comments
Last week Michaels Energy delivered a webinar, Achieving Grid Resiliency with Thermal Energy Storage. There are about 70 gigawatts of refrigeration load in the United States frozen storage and chilled-water HVAC systems alone. That 70 GW does not include distributors like Sysco or U.S. Foods, grocery distribution centers like Walmart or Kroger, food manufacturers like Tyson or Nestle, grocery stores, convenience stores, or restaurants. Add it all up, and well over 10% of the total peak load in the U.S. is sitting there in bags, boxes, and buckets of food, waiting to be used as a flexible load-shifting and management…
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Aug 14
Love41

Unheard of – Two Factors Exacerbated Elliot Power Shortages

By Energy Rant No Comments
The Energy Rant features content you will not find anywhere else, and this week we have blazing examples featuring two unpublished (go ahead and look) contributions to the grid crisis of Christmas weekend 2022 and winter storm Elliot. A few weeks ago, Utility Dive reported that gas-fired generation represented 70% of the PJM unplanned outages during Elliot. That represented about a quarter of PJM’s capacity. The days of interest include Friday, December 23, and December 24. Here were the generation mixes for those days. Hmmm. What didn’t fail? Coal and Nuclear. Why? Because they each come with months of fuel…
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Aug 07
Love42

Willingness to Move on Climate Change

By Energy Rant No Comments
One of my obsessions is understanding how people make choices and what they truly value. Regarding climate change mitigation and everything else, the quest for more dollars or dollar efficiency, i.e., bang for the buck, rules. Migration to Danger A recent article from Bloomberg, Americans are Moving Toward Climate Danger in Search of Cheaper Homes, lays it out for us. That is Bloomberg’s headline, but do people believe climate change is a threat? Don’t bother asking. Watch what people do. Actions don’t lie. “Americans are actually choosing to move to Zip codes with a high risk of experiencing wildfire, heat,…
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Aug 01
Love40
Image shows wind turnine.

What’s on the Minds of Utility Consumer Advocates

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This week I’m focusing on the concerns expressed by members of the National Association of State Utility Consumer Advocates, NASUCA, which met in parallel with NARUC in Austin, TX, a week before last. The topics of concern include outage risk, high prices, and related energy poverty. Outage Risk In the short term, this year or next year, I can only repeat what the experts are saying. Jim Robb, President of the North American Electric Reliability Corporation (NERC), said the bulk power system has seen steady improvement . At the same time, the risk is “terrifying” due to peak load growth…
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Jul 25
Love38

What’s On the Minds of Utility Commissioners

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Last week I attended the National Association of Regulatory Utility Commissioners (NARUC) Summer Policy Summit in chilly Austin, TX, where running shoes never dry. I also learned that the National Association of State Utility Consumer Advocates (NASUCA) holds a conference in parallel in the same venue. This post begins to provide an overview of issues and concerns discussed at the conference, summarized in four words: rising rates declining reliability. Let’s get into it. Rapid Thermal Power Plant Retirement Results: Grid Stress This section may be summarized using the title of the Tuesday panel discussion, “On the Brink: Reliability Challenges and…
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Jul 18
Love37
Image shows graphic of electric vehicle with buildings behind it.

Stay In Your Lane of Strength, or Pay

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My top “strength,” as scientifically assessed by Gallup CliftonStrengths®, is context, which may also be defined as a historian. My other top strengths include attention deficit, information hoarder, and rabbit hole aficionado. Orwell’s famous 1984 quote says, who controls the past, controls the future, and who controls the present controls the past. Well, I’m not controlling anything; I’m hoarding it. Those who study the past can more accurately forecast the future because human nature never changes. History Lessons from Utilities There are limitless examples of companies leaving their lane to pursue bad ideas and things their customers don’t want. Examples…
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Jul 10
Love36
Image shows graphic of tech and a brain.

AI – Where Tech Ends and Winning Begins

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McDonald’s McNuggets I picked up an iPhone at the Verizon store for my mother last week as I visited her in Northwest Iowa. She’s wheelchair-bound with one good hand for daily functions such as eating. After the iPhone pickup, I decided to get some lunch for us at McDonald’s, and although I love McDonald’s hamburgers, I hadn’t been in one of their stores for a while. I guess the machines have mostly taken over – order at the in-store kiosk or online with an app. As I navigated that process, I thought, this is fantastic – another brick in the…
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Jun 27
Love36
Image shows graphic of a bike, car and a plane.

Planes, Bikes, Automobiles, and the Deceptive LCOE

By Energy Rant No Comments
Lazard recently released its 16th levelized cost of energy or LCOE report. The LCOE represents the total cost of generating (or storing) electricity over the asset’s life divided by the total MWh or kWh delivered. The total cost includes construction, land, operations, maintenance, fuel, interest, etc. Questionable Comparisons The LCOE can be misleading, it's like comparing the levelized cost of transportation (LCOT) of a bicycle, automobile, and passenger jet. The LCOE only applies when comparing automobiles against automobiles, bikes against bikes, etc., for obvious reasons. Similarly, LCOE for electricity storage is mostly reasonable. However, comparing LCOE of renewable power generation…
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All things energy. That’s our jam.

We talk a lot about energy – from the serious to the satirical.

All things energy. That’s our jam.

We talk a lot about energy – from the serious to the satirical.

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