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Energy Policy Act

Phony Avoided Cost Models in a Free-Agent Market

By Energy Rant No Comments
The last two posts, Nuclear Power over the White Rabbit and the Clean Power Plan Corpse, demonstrated the fruits of an undiversified baseload fleet of power generation. Electricity prices, which were so low during most of my career that few cared about them, are soaring as natural gas - the basket in which all eggs lie - has become a global fuel. I predicted this as recently as 2017; Reverse Diversification Coming to a Utility Near You. Solar, wind, and storage will never compete with thermal baseload power generation in our lifetimes. I’m covering three things in this post due…
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Minimum Offer Price Rule

Know Grid History and the MOPR

By Energy Rant No Comments
The electric grid is the most complex beast on the planet, ever. Let’s set the table. Electricity has been inexpensive and very reliable in the US for the better part of 100 years. At first, electric utilities were hub and spoke systems that sent power from the hub (power plant) to customers around its service territory. Then, high voltage transmission systems were used to interconnect the hubs for reliability-sake, redundancy, and likely lower prices. Neighboring utilities cut deals to buy and sell power to each other to further keep prices low for their customers. And, of course, electricity sales kept…
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