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RTOs

Wholesale Electricity Market Mechanisms

By Energy Rant No Comments
PSA I thought of making some wisecracks about the trial balloon that the Chinese Communist Party drifted over the United States. Whatever the intent, it’s no good. The thing that gave me a chill is that these balloons are a top ‘delivery platform’ for a nuclear EMP (electromagnetic pulse) attack. These balloons “can fly up to 200,000 feet, evade detection, and carry a small nuclear bomb that, if exploded in the atmosphere, would shut down the grid and wipe out electronics in a many-state-wide area.” I mentioned this last week and wrote an entire post on this threat five years…
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Renewable Interconnection Chaos

By Energy Rant No Comments
A couple of weeks ago, I drove across Southern Minnesota, starting in the SW where wind alley is, and therefore, hundreds, or maybe thousands of wind turbines. The following was my observation while cruising I-90. Since the turbines were not spinning, I can only assume that excessive wind forced the Midcontinent Independent System Operator to curtail several hundred megawatts of wind generation. This, for one reason, is why net zero is as worthless as a three-dollar bill, but also, utilities have power purchase agreements with these non-spinning resources, right? Who pays? The MISO hub prices were as follows that day.…
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Energy Inflation and Resetting the Dislocated Shoulder

By Energy Rant No Comments
As of last week, year-to-date energy prices are up 58% for NYMEX crude oil, 91% for NYMEX gasoline, and only 39% for retail gasoline. Retail prices seem to have a long way to climb as the high NYMEX prices make their way to the local gasoline pump. This week we look at how inflation is hitting our industry of efficiency and electrification and what might lie ahead. Let’s start with one-year price changes for a basket of commodities and roll forward with that. Diesel Fuel is Food Diesel fuel is used to transport seed, chemicals, fertilizers, and equipment to the…
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Rabbit Holes and Electric Rates

Rabbit Holes and Electric Rates

By Energy Rant No Comments
Last week as I began writing the second DRIPE post, I started down an electric-utility-pricing rabbit hole. I pulled back and saved it for this week – rabbit hole, botfly larvae, and all. Now is a good time to play a card dealt to me a few weeks ago. An article in the Ohio Capital Journal described the latest efficiency bill that unanimously passed a House committee and included a precious quote from the Ohio Consumers’ Counsel: “The free market can create the efficiency effects of the legislation, without handing over millions to utility companies along the way.” Wrong, for…
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lightbulb

Reverse Efficiency Beatings with DRIPE

By Energy Rant No Comments
Does more industrial energy efficiency lower energy prices for all? That is a partial title of a paper published at the 2015 Summer Study on Energy Efficiency in Industryand the source of last week’s sassy DRIPE post ( DRIPE = demand reduction induced price effects). DRIPE is a measure of the value of efficiency delivered via downward pressure on energy prices, in this case, electricity prices. The ACEEE conference paper notes that industrial customers could help drive prices for everyone lower through greater demand response through real-time monitoring, smart technologies, and load visualization. This sounds like grid-interactive efficient buildings to…
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What's in your name?

What’s in Your (Org’s) Name?

By Energy Rant No Comments
After several weeks of hardcore grid-interactive efficient buildings (GEBs) discussion and brutal challenges, I’m giving your brains a break this week – kind of like a shot of whiskey after weeks of drinking green protein smoothies in preparation for that marathon you always wanted to do. Pronunciations Speaking of GEBs – how do you say GEBs? Gebs, right? What about SEM. No. SEM aficionados are a highfalutin crowd. It’s es ee em. So dudes, if you don’t like the way people pronounce your organization or activity, name it something simple or deal with the consequences of busy people. What about…
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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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