Tag Archives: Economy

FERC and energy demand response

Beyond a smart grid to mix and match the supply solar and wind to get rid of any need for new coal or nuclear plants, as FERC Chairman Jon Wellinghoff recommended three years ago, FERC also has plans to mix and match demand. Energy customers can volunteer to shut off their air conditioners or clothes dryers automatically if there’s not enough supply. This could facilitate adding solar power, by basically acknowledging that it may not always supply a fixed capacity.

Todd Griset wrote for law firm PretiFlaherty 23 April 2012, FERC seeks demand response standards,

Demand response, an innovative strategy to ensuring the integrity of electric grids, is growing in popularity, prompting federal regulators to consider standardizing how demand response performance is measured.

Managing an electric grid entails ensuring a constant balance between electric generation and customer demand for electricity. As customer demand rises, grid operators have traditionally called on more and more generating units. In most markets, grid operators dispatch the lowest-cost units first to keep overall costs down. As a result, generating units needed to meet peak demand tend to be more expensive than baseload generation. Many peaking units also emit more pollutants per unit of energy than baseload units.

In a demand response program, customers can volunteer to be available to reduce their load during times of peak demand. When done right, this reduction in customer demand can play much the same role as dispatching additional generation, but at a lower cost in dollars and environmental impacts. Energy efficiency resources can also play a similar role.

The U.S. Congress and the Federal Energy Regulatory Commission have both recognized that demand response can be a decentralized, crowd-sourced alternative to peaking power plants. Utilities and regional transmission organizations across the nation are implementing demand response programs.

Across the nation…. How about it, Georgia Power, and Georgia EMCs? How are your demand response programs coming?

-jsq

FERC Chairman: baseload outdated; no new nukes needed; go sun and wind

Power companies’ main stated objection to solar or wind is that they are not “capacity” or “baseload” generation because sometimes the sun does not shine and the wind does not blow. And those utilities are required by various state, regional Energy Regulatory Commissions right up to the Federal Energy Regulatory Commission (FERC) to supply capacity or baseload power. That’s their main excuse for coal and nuclear plants. Well, the Chairman of FERC thinks we may not need baseload, nor any new coal nor nuclear plants, either.

Noelle Straub and Peter Behr wrote for ScientificAmerican 22 April 2009, Will the U.S. Ever Need to Build Another Coal or Nuclear Power Plant? The new chairman of the Federal Energy Regulatory Commission doesn’t think so

No new nuclear or coal plants may ever be needed in the United States, the chairman of the Federal Energy Regulatory Commission said today.

“We may not need any, ever,” Jon Wellinghoff told reporters at a U.S. Energy Association forum.

So what will we need?

Continue reading →

Solar IS Civil Defense PSA

While /the grid power was out during and after the March F2 tornado (F3 in Lanier County), the lights at our place never blinked, because we have solar panels and batteries. George Mokray has a video that expands on that point.

Solar IS Civil Defense—what we are all supposed to have on hand in case of emergency—flashlight, cell phone, radio, extra set of batteries—can be powered by a few square inches of solar electric panel. Add a hand crank or bicycle generator and you have a reliable source of survival level electricity, day or night, by sunlight or muscle power.

Here’s the video:

Solar IS Civil Defense PSA
Valdosta, Lowndes County, Georgia, .
Video by for Lowndes Area Knowledge Exchange (LAKE).

This is also entry level electrical power for the 1.5 billion people around the world who do not yet have access to electricity. Civil defense at home and economic development abroad can be combined in a “buy one, give one” program like the Bogolight (http:// www.bogolight.com) which is a solar LED light and AA battery charger.

Solar IS Civil Defense and could be much more.

I think Lowndes County Emergency Management Director Ashley Tye did a fine job dealing with the tornado. What if beyond the resources he had available we added distributed solar power? In addition to being storm ready, solar also brings jobs for engineers, electricians, truck drivers, and plumbers, and for professors and students to study all that.

Change a few laws, and profit by selling excess power to Atlanta or points north. Add plug-in electric vehicles, and we get less need for foreign oil, so we get improved national security.

Safety, energy independence, and economic development right here at home through solar power!

-jsq

Videos, Regular Session @ LCC 2012-04-24

Here are videos of the entire 11:11 minute 24 April 2012 Regular Session of the Lowndes County Commission. They time at 0:57 (before call to order; doesn’t count), 0:42 (mostly dead air), 0:33 (invocation and pledge: not business), 0:29, 0:37, 0:40, 0:10, 0:46, 1:09, 0:46, 0:53, 1:22, 2:08, 1:30, and 0:08: eleven minutes and eleven seconds total. And that’s including the invocation and pledge and the two citizens who spoke (3:38 for those last two). It would seem a good guess that the Commissioners and staff discussed more in the previous morning’s work session, but not really; you can see for yourself.

In the Regular Session (here’s the agenda) they appointed [“mumble”, said County Manager Joe Pritchard] to the Courthouse Preservation Committee. They approved a beer, wine, and liquor license for Southern Landing Restaurant. The liquor license for Rio Grande Bar & Grill was withdrawn. The adopted the infrastructure for Jimmy Rodgers Way. They decided to hold a public hearing next meeting for unopened ROW off US 41 South. They decided to switch banking from Regions Bank to SunTrust. They accepted bids for water and coffee service for county buildings; (apparently the county’s own water that its citizens drink isn’t good enough for Commissioners and staff).

A Commissioner asked a question! Before they accepted a bid for mowing Bemiss Road, Joyce Evans wanted an explanation of the timeframe of the cutting of the grass. Public Works Director Robin English wanted to know work time or response time? County Manager Joe Pritchard and somebody else simultaneously said “response time”. Hm, how did they know that? In what open meeting was that question previously raised? Also, Pritchard demonstrated he could speak into the microphone and be heard when he wanted to. English clarified the response times quoted by the bidders, and Evans moved to go with the low bidder, which the Commissioners approved, unanimously as usual.

Two citizens spoke:

See those two separate posts for details.

Here’s a video playlist for the entire Regular Session:

Videos, Regular Session
Regular Session, Lowndes County Commission (LCC),
Valdosta, Lowndes County, Georgia, 24 April 2012.
Videos by Gretchen Quarterman for Lowndes Area Knowledge Exchange (LAKE).

-jsq

Videos, Work Session @ LCC 2012 04 23

Here are videos of the entire ten and a half minute 23 April 2012 Work Session of the Lowndes County Commission. As you can see, these videos time at 1:01, 0:33, 0:44, 1:07, 1:45, 1:40, 0:33, 2:59, and 0:10, and that’s with a camera that stops and starts almost instantaneously. Those times add up to 10 minutes and 32 seconds. Is that adequate discussion for the county’s business?

A former member of the Courthouse Preservation Commission, has moved, and the Chairman said Mike somebody was a good one to appoint as a replacement. No Commissioners asked any questions. They didn’t ask many questions on anything else, either. On 8a. Abandonment of unopened ROW on Walker Avenue (off of US 41 S) in Twin Lakes area, Commissioner Crawford Powell had a question, but it was only where the engineer was in the map.

Finance Director Stephanie Black said the county sent out an RFP for banking services to local banks. Three responded, and one was incomplete. The two complete bids were Regions Bank and SunTrust. Regions will waive charges with $6M balance; SunTrust will waive charges $2.8M balance.

On the FDIC charge, Regions will charge .135 per thousand dollars; SunTrust is waiving that.

She said that was currently about $3500 or $4500 per month. Commissioner Powell asked who they were currently using. Answer: Regions. There’s more in the video, and there was a written report the Commissioners were looking at.

Apparently the county’s own water isn’t good enough for Commissioners and staff, Continue reading →

Ocilla prison nearly sold at auction: better due diligence would be a good idea

A business our Industrial Authority wanted to get us into still risks bankrupting Irwin County: a private prison. Maybe we should do better due diligence around here and invest in better business ventures.

AP reported 23 April 2012, South Ga. detention center nearly sold at auction,

A privately owned detention center that houses hundreds of illegal immigrants in south Georgia is struggling with finances, and narrowly avoided being auctioned this year.

How bad is it?

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What actually gets companies to locate in Chattanooga?

So we heard about Chattanooga all during the school “unification” referendum. I turns out Chattanooga really does have something that attracts business (no, not a unified school system; if you want to go back into that, I’ve got the references available). What really attracts businesses to Chattanooga is fast Internet broadband access.

Christopher Mitchell wrote for Planetizen 30 April 2012, Should Your City Build Its Own Broadband Network?

While on a site selection visit in Chattanooga, a CEO asked about broadband access. When told that the slowest tier on Chattanooga’s community fiber network was 30 megabits per second, he turned to his IT adviser for a translation. Upon hearing “that’s more than we can get in our headquarters presently,” the company cancelled its other planned visits and located its new site in Chattanooga.

That’s right, Chattanooga really does have one thing going for it: high speed Internet access.

Why does that matter?

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If Southern Company’s nukes are a good deal, why so many insider stock sales?

If the Southern Company’s slick nuclear financing deal and its ongoing operation of three of the country’s dirtiest coal plants (two of them in Georgia) is such a good deal, why are so many insiders selling so much stock?

Maybe SO CEO Thomas A. Fanning needed that $12.4 million he got back in January by selling 275,617 shares at $45.0693 per share for a new yacht, or a new wing on his house, or something. A brief scan of nearby energy companies (Duke and Progress) indicates it’s not unusual for an energy company CEO to sell shares, although mostly not for this much dollar amount. $12.4 million is more than twice Fanning’s 2010 salary of $6.02 million, and well more than his 62% raised 2011 salary of $9.75 million that Georgia Power customers get to help pay for through Construction Work in Progress (CWIP) charges for the new nukes at Plant Vogtle that won’t be built for years, if ever.

But what’s with two SO subsidiary company CEOs, Mark A. Crosswhite, President and CEO of Gulf Power ( #206 on the Forbes Global 2000 in 2010) and Edward Day VI, President and CEO of Mississippi Power Company ( former engineering group supervisor at the Hatch Nuclear Project) selling a bunch of stock in April? Also there have been only a couple of puny little purchases, each of less than $30,000, in the past year. Why so much selling and so little buying by insiders?

Maybe new nukes are an increasingly bad business risk for Southern Company and Georgia Power. Perhaps some economic expert can help with this question; how about Moody’s? Maybe Georgia Power customers and Georgia and U.S. taxpayers and voters have an opinion?

I wonder what will happen to SO’s insider trading patterns when SO’s illusion of certainty of profit from nuclear and coal eventually becomes obvious even to their board and shareholders as actually a big risk, and when SO realizes Cobb EMC made the right choice for profit by ditching coal plant plans and building solar plants instead; when SO finally suddenly switches to solar like Cobb EMC and Austin Energy already did. Will insiders decide SO’s stock has become a good buy when SO builds solar and wind plants?

-jsq

Nuclear’s “bet-the-farm” risk —Moody’s

Wonder why Southern Company couldn’t get private financing for its new nukes at Plant Vogtle? Because back in June 2009 bond-rater Moody’s said this:

But from a credit perspective, the risks of building new nuclear generation are hard to ignore, entailing significantly higher business and operating risk profiles, with construction risk, huge capital costs, and continual shifts in national energy policy.

In case that wasn’t clear enough, they spelled it out further.

Nuclear’s “bet-the-farm” risk

The NRC says about 14 companies to date have submitted COL applications, proposing numerous new nuclear reactors for power generation. The first of these COL’s is expected to be approved beginning in mid-2011. Many of the COL license applications include partners, but the next table lists the primary holding company entity behind each project, and our view of the activity level associated with the endeavor.

From a credit perspective, companies that pursue new nuclear generation will take on a higher business and operating risk profile, pressuring credit ratings over the intermediate- to long-term.

Moody’s wraps up with some reassuring words for financiers, but maybe not so reassuring to we the taxpayers:

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New nukes increasingly bad business bet for Southern Company and Georgia Power

Harvey Wasserman wrote for HuffPost 9 April 2012, America’s 2 New Nukes Are on the Brink of Death,

The only two U.S. reactor projects now technically under construction are on the brink of death for financial reasons.

If they go under, there will almost certainly be no new reactors built here.

The much mythologized “nuclear renaissance” will be officially buried, and the U.S. can take a definitive leap toward a green-powered future that will actually work and that won’t threaten the continent with radioactive contamination.

Those are the stakes. And in that high-stakes poker game, it seems Southern Company is doing a little bluffing.

In Southern Company’s (SO) Q1 2012 Earnings Call 25 April 2012, its CEO Thomas Fanning revealed another little flaw in the project:

Continue reading →