Category Archives: Energy Development

Ideology vs Economics-Feds Plan to Buy 116 Electric Cars


Obama plans to buy some $4plus million dollars on Electric Vehicles to save $116 thousand annual fuel cost.  USA Today reports that the Obama Administration is planning on buying 116 electric vehicles and installing charging stations in five cities.

The usual ideology that the country needs to boost alternatively powered vehicles to reduce CO2 emissions and reduce foreign crude oil use is in play here.  This administration’s devotion to the man-made global warming theory is going to drive us to third world status if we don’t vote them out of power at the next election.

Based on Consumer Report’s analysis, the government would be better off to buy a Prius at half the cost and the Prius gets better mileage.  On March 3, 2011 USA Today posted the following:

Consumer Reports magazine offers its initial assessment of the two reigning wondercars of our times, the Chevrolet Volt and Nissan Leaf, in its April issue and finds both may not be such good deals after all.

Not only has Consumer Reports’ test car been coming in at the low end of the electric-only mileage range — 23 to 28 miles, not 25 to 50 miles as billed — before the gasoline power kicks in, but CR had to pay over list to the get the car. It says it had to pay $48,700 — full price plus options and a $5,000 windfall to the dealer.

It gets worse. CR figures the cost of recharging the Volt would work out to about 5.7 cents a mile for electric mode and 10 cents a mile for gas. Yet a Toyota Prius, which gets about 50 miles a gallon, would cost 6.8 cents a mile to operate. A Prius costs half as much as a Volt.

Using the Consumer Report price of $48,700 and a Prius price of nominally $28,000, the extra cost for getting the Volt would be about $20,000 per car. Is the actual price of the Volt $48thou versus the MSRP of $41thou?     The Los Angles Times reports that some Volt dealers are inflating the selling prices “more than $20,000 above GMs suggested retail price of $41,000”.

Using the difference in the purchase price, $20,000×116= $2.3 million premium for the same (or possibly worse) gas mileage. There is also a cost for the charging stations.    Chuck Rogers in an American Thinker posting estimated the five charging stations at…. “$75,000, including any and all land purchase or site lease costs.
Roughly we have about $2.4million dollars premium to save the same amount of annual fuel costs that could be achieved by buying the same number of Prius.  (Are more than one Prius, Prii?)

Ok, so “buy US” is a good thing for our government to do.  But my guess is that the Chevy Cruise would be a better buy.   Ideology gets in the way of common sense.

Cbdakota

 

Joanne Nova’s Guide to the Skeptic’s World.


Many in our country believe in the theory of man-made global warming.  They are busy with their own lives and problems and don’t have time to get informed to make their own judgment.   Others have just left school, high school or college, where the “educators”—many ill informed—have been preaching the theory to them.   Moreover, they often believe this because the media really only prints articles which are supportive of that theory

Yet the tide is turning against those who want us to believe that we must act quickly to prevent a global catastrophe.   How is it possible then, that in the face of the media barrage, and the educators, more people are becoming skeptical of what they are being told?

One reason, besides our citizen’s inherent common sense, is the internet’s unpaid (most of them anyway) cadre of skeptics that are providing factual discussions on the theory.  This information allows them to look at both sides of the issue.    One of the very best is Joanne Nova—A brilliant and prolific writer.

Nova has a posting “New Here? The “ten second” guide to the world of skeptics.”  I guess she put quotation marks around ten seconds, cause it will take you longer than that to read through the posting .  But I can’t think of anything that will get you up to speed regarding  most of the issues around the theory of man-made global warming faster or more comprehensively.

She tells you who is outspending Big Oil and by how much.

She illustrates why the banking community is so gung ho about the theory.

She points out how unscientific  the “scientific” underpinnings of the theory are.

She discusses climate history.

Etc.

Her posting is full of links that support her position.  If you don’t read them on the first time through the posting,  do it  at the time of your  second or third reading .

After that, you will be better able to navigate the murky waters of the man-made global warming theory and dig deeper into the science of this issue.  I bet you will come down on the side of the skeptics as your knowledge matures.

cbdakota

A RE-VOLT-ING DEVELOPMENT


Even in the face of high gasoline prices, Volt sales dropped from 608 cars in March to 493 in April.    The year-to-date sales of the Volt are 1703.  General Motors announced that they would produce in 2011 and 2012 a total of 100,000 Volts.

In January of this year, President Obama named Jeffery Immelt, CEO General Electric, to replace Paul Volcker as the Chairman of the Council on Jobs and Competiveness.  Following the announcement, Immelt promised to buy 50,000 Volts over the next two years.   A little math says that if GE does buy half the production run of 100,000, then GM only has to find 48,297 customers for the other half in the next 20 months.  That is a 566% monthly sales increase over the current monthly sales average.

But what signals are we getting from Immelt?   According to Junk Science Immelt has signaled that jobs are going to be more important to him than a “comprehensive energy strategy”.

At an event at the Massachusetts Institute of Technology on Tuesday, Immelt said,

“If I had one thing to do over again I would not have talked so much about green… Even though I believe in global warming and I believe in the science … it just took on a connotation that was too elitist; it was too precious and it let opponents think that if you had a green initiative, you didn’t care about jobs. I’m a businessman. That’s all I care about, is jobs… I’m kind of over the stage of arguing for a comprehensive energy policy. I’m back to keeping my head down and working. [Emphasis added]

If he means what he appears to be  saying, then one might infer that he will renege on his pledge or perhaps more realistically buy many less that 50,000 Volts.

That would be re-Volt-ing development.  For GM!!

cbdakota

 

MONBIOT ON DISCORD IN THE GREEN RANKS


George Monbiot writes for the UK Guardian newspaper and he is perhaps the most influential green blogger in Europe.  This week, beginning with a blog on 2 May and a follow-up several days latter, he discussed the problems within the green movement.  The title of his 2 May posting is  “Let’s face it: none of our environmental fixes break the planet-wrecking project”.  His subtitle for that posting is:”All of us in the green movement are lost before the planet’s real nightmare: not too little fossil fuel—but too much”.

Monbiot is a believer in catastrophic global warming resulting from fossil fuel use (the “planet-wrecking project”).  And his preferred solution is “sustainability” which means to allocate resources and wealth across the globe while at first reducing and eventually eliminating fossil fuel use.  Ultimately world societies would become less complicated and perhaps more agrarian.  De-developing the Western societies while developing those nations that are second and third world will be necessary to accomplish this.  A tenet of sustainability is that governments will have to exercise more control to assure the outcomes.  Saying it differently, you will surrender much of your freedom to the UN or some like group.

He was hoping that fossil fuels would become less available but he laments, that is not the case.

This posting is not to dispute Mr. Monbiot’s premise of catastrophic global warming due to fossil fuel uses, but rather to examine his view of the sects within the AGW crowd and their differences in beliefs. To begin, Mr. Monbiot is not my kind of guy.   When John Bolton, our UN Ambassador, traveled to England in 2008, Monbiot wanted to arrest him and try him for war crimes. Monbiot also began a campaign to have then Prime Minister Blair taken to court on similar charges related to the Iraq war.  His thoughts on things he thinks we should be doing, IMHO, demonstrate a low level of economic reality and a love of “Big Brother”.   Although our worldviews are quite different, he is quite intelligent so we need to keep track of what he is thinking.

He begins his first posting regarding discussions with his fellow warmers like this:”You think you’re discussing technologies, and you quickly discover that you’re discussing belief systems. The battle among environmentalists over how or whether our future energy is supplied is a cipher for something much bigger: who we are, whom we want to be, how we want society to evolve. Beside these concerns, technical matters – parts per million, costs per megawatt hour, cancers per sievert – carry little weight. We choose our technology – or absence of technology – according to a set of deep beliefs: beliefs that in some cases remain unexamined”.

He makes sense when he defends his recent acceptance of nuclear energy as a vital need going forward, with or without fossil fuels: “The case against abandoning nuclear power, for example, is a simple one: it will be replaced either by fossil fuels or by renewables that would otherwise have replaced fossil fuels. In either circumstance, greenhouse gases, other forms of destruction and human deaths and injuries all rise”.

“The case against reducing electricity supplies is just as clear. For example, the Zero Carbon Britain report published by the Centre for Alternative Technology urges a 55% cut in overall energy demand by 2030 – a goal I strongly support. It also envisages a near-doubling of electricity production. The reason is that the most viable means of decarbonising both transport and heating is to replace the fuels they use with low-carbon electricity. Cut the electricity supply and we’re stuck with oil and gas. If we close down nuclear plants, we must accept an even greater expansion of renewables than currently proposed. Given the tremendous public resistance to even a modest increase in windfarms and new power lines, that’s going to be tough”.

He believes that “accommodation” (read sustainability) is the goal but he says:”But even if we can accept an expansion of infrastructure, the technocentric, carbon-counting vision I’ve favoured runs into trouble. The problem is that it seeks to accommodate a system that cannot be accommodated: a system that demands perpetual economic growth. And adds: Accommodation makes sense only if the economy is reaching a steady state”.

He has been criticized in Simon Fairlie’s posting in the magazine The Land. To which he responds:”There’s a still bigger problem here: even if we make provision for some manufacturing but, like Fairlie, envisage a massive downsizing and a return to a land-based economy, how do we take people with us? Where is the public appetite for this transition?”

Monbiot adds that:   “A third group tries to avoid such conflicts by predicting that the problem will be solved by collapse: doom is our salvation. Economic collapse, these people argue, is imminent and expiatory. I believe this is wrong on both counts”.

He then gets to his central point about too much fossil fuel: “The problem we face is not that we have too little fossil fuel, but too much. As oil declines, economies will switch to tar sands, shale gas and coal; as accessible coal declines, they’ll switch to ultra-deep reserves (using underground gasification to exploit them) and methane clathrates.

Monbiot sums up his view of the current state of the environmental movement:”All of us in the environment movement, in other words – whether we propose accommodation, radical downsizing or collapse – are lost. None of us yet has a convincing account of how humanity can get out of this mess. None of our chosen solutions break the atomising, planet-wrecking project”.

In his second posting is “The green problem: how do we fight without losing what we are fighting for?”.  It is subtitled: “Environmentalism is stuck-factional and uncertain even of the goals we seek.  But we must face facts and engage in reality.”

In this posting he expands upon the point he made in the first posting and he adds some interesting things.  He  enumerats the disagreements that he believes permeate the green community: “We have no idea what to do next. We have no idea what to do next.  Partly as a result, we have started tearing each other apart. This is an understandable but unnecessary reaction. Those seeking to protect the landscape are not our enemies; nor are those advocating that renewables should replace fossil fuel; nor are those promoting nuclear power as the answer; nor are those opposing nuclear power. We are all struggling with the same problem, all bumping up against atmospheric chemistry and physical constraints”.

“The enmity arises when people go into denial. Denial is everywhere. Those opposing windfarms find it convenient to deny that climate change is happening, or that turbines produce much electricity. Those promoting windfarms downplay the landscape impacts. Nuclear enthusiasts ignore the impacts of uranium mining. Opponents of nuclear power dismiss the solid science on the impacts of radiation and embrace wildly-inflated junk numbers instead. Primitivists decry all manufacturing industry, but fail to explain how their medicines and spectacles, scythes and billhooks will be produced. Localists rely on technologies – such as microwind and high-latitude solar power – that cannot deliver. Technocratic greens refuse to see that if economic growth is not addressed, a series of escalating catastrophes is inevitable. Romantic greens insist that the problem can be solved without even engaging in these dilemmas, yet fail to explain how else it can be done”.

“We’re all responding to the same impulses, but we’re all being tripped up by denial. Denial, and a failure to see the whole picture, are our enemies. Or perhaps, as doctors say about alcohol, our false friends”.

He cites Paul Kingsnorth’s posting titled “The quants and the poets”.   Quants are numbers/facts people and poets are people that examine societies values and underlying mythology.  Kingsnorth’s posting is very well written and he too contrasts the various divergent opinions alive in the green world today.  He believes that Monbiot is loosing his credentials as a Poet.

Monbiot responds to this quants/poets issue here: “Perhaps we are less tolerant of myth than we used to be. Perhaps we should be. Is creating new, opposing myths the best way of confronting the founding myths of neoliberal capitalism? I don’t think so. Is it not better to fight them with withering analysis, quantification and exposure? But can we do this without becoming insensible to beauty, and to the impulse – a love for the world and its people, its places and its living creatures – which turned us green in the first place? I don’t know”.

Well this has been a long post and I thank all of you that read it all the way to the end.

cbdakota

BETWEEN THE ROCK AND THE HARD PLACE—U.S. ENERGY POLICY Part 1


Between the Obama administration’s plan to drive prices up in order to put fossil fuels out of business and the turmoil in the Middle East and North Africa (MENA), the U.S. is in real danger of another economic collapse, just as we seem to be coming out of the very deep recession.  In both cases the problem is ideology.  Obama’s ideology  apparently  is to cause the  US to become a second rate, socialist nation. (Perhaps I am redundant when I use “socialist” and “second rate” as descriptors.)  The ideology behind the turmoil in MENA is less clear.  In some cases it seems to be a move for a democratic society and in other it appears to be a power grab by the “Muslim brotherhood” for example.    Thumbs up for the former and thumbs down for the latter.

Part 1 of this entry will be a  look at the Obama Administration. Part 2 will be a look at the turmoil in MENA and the interconnections with the US Energy Policy.

Obama Administration Policies

President Obama made his position on energy perfectly clear, even before he was elected. He said he would cause the electricity rates to skyrocket.  He told people that if they put their money in coal plants he would see that they would go bankrupt.  see here

He is for offshore drilling in Brazil. In his recent visit to Brazil, he applauded their efforts and pledged billions of dollars in aid for their work.  But he does not like offshore drilling for the US.

He populated his Administration with people of the same mind.

Obama’s Science Advisor is John Holdren.  If you have followed Holdren’s career, you know that this man has made more bad predictions of things to come that anyone except possibly his cohort, Paul Ehrlich.  According to CNS News.com Holdren said:

In a video interview this week, White House Office of Science and Technology Director John P. Holdren told CNSNews.com that he would use the “free market economy” to implement the “massive campaign” he advocated along with Paul Ehrlich to “de-develop the United States.” (My emphasis added)

He and Ehrlich described de-development in their book, Human Ecology: Problems and Solutions ” as:  “Resources must be diverted from frivolous and wasteful uses in overdeveloped countries to filling the genuine needs of underdeveloped countries,”

Ken Salazar is the Secretary of the Interior.   He manages to minimize leases for new drilling and he prevents development of good potential fossil fuel resources sites by setting aside land.   He and Obama do not want the prize areas like ANWR developed although these and other could make us far less dependant on sources outside to the US.

Steven Chu the Secretary of Energy has said that we should figure out how to boost the price of gasoline to $8.    This Administration seems to be on track to do just that.

The EPA  Administrator Lisa Jackson has a big role in these policies.

Lets look at their latest outrageous abuse of power.    See full posting here

Shell has spent five years and nearly $4 billion dollars on plans to explore for oil in the Beaufort and Chukchi Seas. The leases alone cost $2.2 billion. Shell Oil Company has announced it must scrap efforts to drill for oil this summer in the Arctic Ocean off the northern coast of Alaska. The decision comes following a ruling by the EPA’s Environmental Appeals Board to withhold critical air permits. At stake is an estimated 27 billion barrels of oil. That’s how much the U. S. Geological Survey believes is in the U.S. portion of the Arctic Ocean. 

The closest village to where Shell proposed to drill is Kaktovik, Alaska. It is one of the most remote places in the United States. According to the latest census, the population is 245 and nearly all of the residents are Alaska natives. The village, which is 1 square mile, sits right along the shores of the Beaufort Sea, 70 miles away from the proposed off-shore drill site.

The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. 

“What the modeling showed was in communities like Kaktovik, Shell’s drilling would increase air pollution levels close to air quality standards,” said Eric Grafe, Earthjustice’s lead attorney on the case.

Who is on  the EPA appeals board that is appointed by the EPA Administrator, Shelia Jackson?

The Environmental Appeals Board has four members: Edward Reich, Charles Sheehan, Kathie Stein and Anna Wolgast. All are registered Democrats and Kathie Stein was an activist attorney for the Environmental Defense Fund

And here is another one:

A three-inch lizard that thrives in desert conditions could shut down oil and gas operations in portions of Southeast New Mexico and in West Texas, including the state’s top two oil producing counties.   Called the Dunes Sagebrush Lizard, it is being considered for inclusion on the federal Endangered Species listing by the U.S. Fish and Wildlife Service.  To read more click here.

And we don’t want to forget the cover his ever faithful friends, the mainstream media, are giving the Administration: click here

While Obama is taking some heat for the price of gasoline, he never forgets what his goals are.  Remember how he seemed to back off ObamaCare only until he found a way to get it approved through the back door of the Senate.  He is not pushing for Cap and Trade legislation.  He does not need to do that because the Supreme Court in a monumental example of bad judgment gave the EPA keys to our bank account when they said the EPA could write regulations for capping CO2 emissions.

His solutions are primarily wind farms and solar cell farms to make up for the fossil fuel powered utilities that he would see shutdown.  These renewable energy sources are not ready at the present time to accomplish this.  They may never be able to substitute for fossil fuel.  See these postings for more information on renewables:

dept-of-energy’s-analysis-says-wind-and-solar-not-competitive/

/real-wind-power-data—disappointing-performance/

https://cbdakota.wordpress.com/2011/03/07/are-windfarms-driving-the-uk-to-third-world-status/

https://cbdakota.wordpress.com/2011/03/05/treasury-few-renewable-energy-projects-deserve-funding/

In Part 2 we will look at what are the forces shaping the new energy world order.

cbdakota


Obama Wants Supreme Court To Throw Out Case Against Utilities


On Tuesday, the Supreme Court will hear oral arguments on a lawsuit brought by several environmental groups as well as several States.  This group is asking the Court to force power plants in 20 states to reduce their CO2 emissions.  The Obama Administration is siding with the power companies asking that the EPA throw out the lawsuit.  Obama on the side of the Utility companies you ask with a stunned look on your face.  Well, they are but not because they don’t want to cut CO2 emissions.  They are arguing that the Supremes should not set the regulations, but rather that should be left to the EPA which has not yet written them.  They say that the Court should not meddle in the powers given to the Executive Branch of which, as you know, the EPA is a member.

Laurence Tribe, lib lawyer extraordinaire, is supporting the Administration in their quest to get the Supremes to drop the case.  In his letter to the Boston Globe he says:

“Congress, through the Clean Air Act and other measures, has empowered the Environmental Protection Agency to regulate greenhouse gases, and that agency has begun to do so, prodded by a Supreme Court ruling in favor of Massachusetts when the state sued the EPA to compel it to take up the problem. The courts should reject the political and administrative roles that would be thrust upon them by litigants dissatisfied with Congress’s decision to entrust the EPA with this challenging mission — or by those dissatisfied with the efforts of the president and the State Department to engage in the international diplomacy required to cope with an obviously international problem.” (underlines are my emphasis)

Give me a break.  The  previous Congress thought it necessary that it write legislation to manage CO2 but could not get a bill to pass. And that was with a Democrat majority in both houses and the Presidency!!!   How does that translate into “…Congress’s decision to entrust the EPA”????  Today, neither the House nor Senate could muster a bill with 50% voting for regulation of CO2.

NOW, Tribe thinks the Supreme’s activities on this topic are a “dangerous perversion of the judicial process and would likely retard efforts to grapple with climate change…..”  It was A-ok to do it in the Massachusetts versus the EPA when it resulted in the Supremes making that horrible decision in Mass.’s favor. Do I smell hypocrisy?

I believe there are two reasons Obama, supported by Tribe, don’t want the Supremes involved any more:

  • Fear that the Supremes will somehow try to make up for their previous error by narrowing the EPA’s power to regulate
  • Hundreds of lawsuits await the EPA if they follow through with their intended path of focusing on the “big polluters–hence Utilities and automobiles” and ignoring everything else.  Folks say that the EPA can’t be selective—- picking and choosing whom they are going to regulate— but rather like with other “pollutants” they must regulate all sources. All the hospitals, the high schools, the office building down the street, your house, etc.  The EPA  doesn’t want anyone to tell them what to regulate.  A decision by the Supremes to set emission limits on these utilities would open the gate for the lawsuits.
UPDATE 19 APRIL 2011  Seems the Supremes are likely to side with Obama. See this posting.
cbdakota

Real Wind Power Data—Disappointing Performance


It is difficult to get comprehensive data on wind farm performance as it is shielded from view by “protection of competitive data” or by contract terms.  A new study bearing comprehensive data from Scotland confirms what skeptics have been saying about windfarm performance. This new study is perhaps the most comprehensive since the Bentek Energy(an energy analytics firm) study of Colorado and Texas windfarms.

Stuart Young Consulting with support from the JOHN MUIR TRUST (emphasis mine, to highlight that this study was commissioned by a green NGO) has released a report studying the ability of wind power to make a significant contribution to the UK’s energy supply. It concludes that the average power output of wind turbines across Scotland is well below the rates often claimed by industry and government.

This report examined 5 common claims by the wind industry and the Scottish Government.   The five claims are in RED with the actual result in BLACK:

1. ‘Wind turbines will generate on average 30% of their rated capacity over a year’ In fact, the average output from wind was 27.18% of metered capacity in 2009, 21.14% in 2010, and 24.08% between November 2008 and December 2010 inclusive.

2. ‘The wind is always blowing somewhere’ On 124 separate occasions from November 2008 to December 2010, the total generation from the windfarms metered by National Grid was less than 20MW (a fraction of the 450MW expected from a capacity in excess of 1600 MW). These periods of low wind lasted an average of 4.5 hours.

3. ‘Periods of widespread low wind are infrequent.’ Actually, low wind occurred every six days throughout the 26-month study period. The report finds that the average frequency and duration of a low wind event of 20MW or less between November 2008 and December 2010 was once every 6.38 days for a period of 4.93 hours.

4. ‘The probability of very low wind output coinciding with peak electricity demand is slight.’ At each of the four highest peak demand points of 2010, wind output was extremely low at 4.72%, 5.51%, 2.59% and 2.51% of capacity at peak demand.

5. ‘Pumped storage hydro can fill the generation gap during prolonged low wind periods.’ The entire pumped storage hydro capacity in the UK can provide up to 2788MW for only 5 hours then it drops to 1060MW, and finally runs out of water after 22 hours.

The final claim about “pumped storage” varies with the area where the windfarms are located.  In the US, an area such as the Great Plains, where wind availability is favorable to siting of windfarms, has little to no pumped storage hydro capacity available.   Availability in most other areas is either used or would be difficult to develop as environmental groups object to the use of dams.  Further there is a loss of efficiency when the windpower electricity is used to pump water to some higher elevation and then recovered in hydroelectric turbines.

The author of the report said:

It was a surprise to find out just how disappointingly wind turbines perform in a supposedly wind-ridden country like Scotland. Based on the data, for one third of the time wind output is less than 10% of capacity, compared to the 30% that is commonly claimed.

At the end of the period studied, the connected capacity of wind power was over 2500MW so the expectation is that the wind network will produce, on average, 750MW of energy. In fact, it’s delivering far less than everyone’s expectations. The total wind capacity metered now is 3226MW but at 3a.m. on Monday 28th March, the total output was 9MW.

To see the John Muir Trust posting in more detail, click here

For further information on the Bentex study mentioned at the begining of this posting click here.

cbdakota

Does your state have Renewable Electricity Mandates?


Twenty-nine States have passed legislation that requires utilities to sell or produce a certain percentage of electricity from renewable sources.   Electricity prices are higher in those states, partially due to these mandates.

According to the Institute for Energy Research these mandates are an expensive way to reduce carbon dioxide emissions.   In their posting The Status of Renewable Electricity Mandates in the States they note the following:

Some argue that renewable electricity mandates are a good way to reduce carbon dioxide emissions, but renewable electricity mandates are a very expensive way to reduce carbon dioxide emissions. According to the California Air Resources Board, it costs $133 per ton to reduce carbon emissions through the mechanism of a renewable electricity mandate. An internal Obama administration memorandum on subsidies for renewables recently noted that carbon dioxide emissions “would have to be valued at nearly $130 per ton for CO2 for the climate benefits to equal the subsidies.” To put these numbers in perspective, it currently costs about $15 a ton to purchase a certified carbon dioxide allowance traded on the European Climate Exchange.

There are currently no Federal renewable energy mandates. The Heritage Foundation has calculated the economic impact of enacting Fed mandates as follows:

Its researchers found that a mandate starting at 3 percent for 2012, and increasing by 1.5 percent per year until 2035, would:

• Raise electricity prices by 36 percent for households and 60 percent for industry;

• Cut national income (GDP) by $5.2 trillion between 2012 and 2035;

• Cut national income by $2,400 per year for a family of four;

• Reduce employment by more than 1,000,000 jobs; and

• Add more than $10,000 to a family of four’s share of the national debt by 2035.

Similarly, Credit Suisse estimated the capital expenditures necessary to achieve different levels of renewable generation by 2020. The bank noted that a nationwide 10 percent renewable electricity mandate would require capital expenditures of $350 billion, a 15 percent mandate would require $500 billion and a 20 percent requirement would require $750 billion. The California Air Resources Board has estimated that it will cost $115  billion in new infrastructure to meet California’s renewable electricity mandate in 2020 (33 percent).

I recommend that you open up this link to see how your State stacks up.

cbdakota

Strip EPA of Carbon Regulation Authority


This week, when Harry Reid opened a small business bill to amendments, Mitch McConnell introduced a rider that would strip the EPA of its ability to regulate carbon.  It is considered possible that enough Democrat Senators will ally with the Republicans Senators to see that this amendment will pass. The vote is schedule this week and may happen tomorrow.

You all probably know that the Clean Air Act did not specify CO2 as pollutant but the Supreme Court after hearing arguments in Massachusetts vs. EPA ruled that if the EPA studied the issue and concluded that CO2 was a hazard, they could regulate CO2.   The Legislative branch of the Federal government was unable to pass legislation to regulate CO2, so the Supreme Court in a gesture too often seen, chose to step outside of their boundaries and in a 5 to 4 vote took on the legislative role which they do not have the justification to do.  In effect the Supremes passed Cap and Trade legislation, which has routinely been defeated in the Senate.  And worse, gave the Executive Branch carte blanche to write the regulations.

The Wall Street Journal’s posting -The Senate EPA Showdown,on this topic says:

But a vote for the McConnell amendment, which would permanently bar the EPA from regulating carbon unless Congress passed new legislation, is justified on democratic prerogatives alone. Whatever one’s views of Massachusetts v. EPA or climate science, no elected representative has ever voted on an EPA plan that has often involved the unilateral redrafting of plain-letter law.

The WSJ posting adds that the potential Democrat Senators that are leaning toward supporting the McConnell amendment are:

Democrats to watch will be Sherrod Brown (Ohio), Bob Casey (Pennsylvania), Tim Johnson (South Dakota), Tom Carper (Delaware), Mary Landrieu (Louisiana), Kent Conrad (North Dakota), Amy Klobuchar (Minnesota), Claire McCaskill (Missouri), Jim Webb (Virginia), Ben Nelson (Nebraska), Carl Levin and Debbie Stabenow (Michigan) and John Rockefeller and Joe Manchin (West Virginia). All of them have been publicly critical of the EPA, and, not incidentally, most of them face a tough re-election.

The WSJ adds:

The McConnell amendment is one of the best proposals for growth and job creation to make it onto the Senate docket in years. If Mr. Obama is intent on defending the EPA’s regulatory assault, then the least Senate Democrats can do is force him to defend his choices himself.

Get in touch with your Senator and urge he/she to vote for growth and job creation by joining the Republicans to pass the McConnell amendment.

cbdakota

DELAWARE AND BLUEWATER WIND


For this posting  I want to use my neighboring state of Delaware and the proposed off-shore wind farm as an example of what the rate payers in that state are facing.

Several years ago furious because of what happened when the price of electricity was deregulated Delawareans were led to believe they could protect themselves from this happening again by installing an offshore windfarm to produce “renewable” electricity.   Driven by the perception that the price of electricity would be less expensive and that it would help save the planet by reducing the electricity produced by natural gas or coal,  they willingly accepted the idea of offshore windfarm.  Moreover the State mandated that a percentage of the electricity used in the State had to be produced from “renewable” energy.

With much political pressure being applied, Delaware Power (the major Delaware Utility) began negotiations with Bluewater Wind (BWW).   Delaware Power reluctantly signed a contract to buy the electricity from this proposed wind farm.

Unfortunately for the Delawareans who thought the deregulated price of electricity was high, they are in for a bigger shock if they allow the BWW offshore windfarm to become a fact.  And wherever windfarms are installed, they are so unreliable that equivalent fossil fuel electrical generating capacity must be installed to protect the electrical users from interruption of their supply. This adds more cost and does nothing to reduce carbon dioxide emissions.

PRICE OF ELECTICITY FROM OFF-SHORE WINDFARMS

Lets look first at cost.   The Department of Energy’s Energy Information Agency says that without subsidies the price of electricity from offshore windfarms is not viable.  The following table is the EAI’s latest estimate of the cost of electricity production in 2016 when BWW says they will be producing electricity:

LEVELIZED COSTS OF ELECTRICITY IN 2016

Look at the column “Total System Levelized Costs” for conventional coal, and conventional combined cycle (in the Natural Gas-fired grouping) and then compare these costs to the levelized cost of Wind-Offshore:

Coal is $94.8 per megawatt hour or more familiarly  $0.095 per kilowatt hour.

Natural gas is $0.066 per kilowatt hour

Wind—Offshore is $0.243 per kilowatt hour.

To give you a little background on these numbers, the EAI penalized the natural gas and coal plants estimates with a cost of buying CO2 credits which would be necessary if the our country ever losses its mind and passes “cap and trade”. These penalties do not currently exist but are included anyway.

The Wind—offshore costs do not reflect the subsidies that the government is handing out to cover the real costs shown in this chart.

CAPACITY FACTOR AND ITS AFFECT ON COSTS

The capacity factor is a measure of the percentage of the rated capacity that can be depended upon.  The main natural gas and coal plants operate most of the time at a percentage of rated capacity in the mid to upper 80tys.  The Wind—offshore has a capacity factor of 39.3%.   From what one reads in the literature where actual performance of windfarms is recorded, the number of 39.3% vastly overstates their performance, which is often said to be in the 19 to 20% range.  Were the EAI to use the lower capacity factor,  the cost for wind produced electricity would be even more expensive than the $0.243 per kilowatt hour.

Several of the Natural Gas fired cases are nearly as high as the wind cases.  This is because these cases are for the backup turbine units that utilities must have to meet unexpected changes in supply or demand.  These natural gas turbines have capacity factors of 30% but can achieve a much higher number.  However, they are more costly to operate and are only used, as noted earlier, as backup.

The US has a vast surplus of natural gas.   The forecast cost to produce electricity in a natural gas based plant based upon the Department of Energy’s forecast in 2016, is about 27% of the offshore windfarm for that same year.  Will there ever be a time that these wind farms can compete in the market place or will we rate payers always have to subsidize them?

The fundamental problem with windfarms (and solar) is the fact that they can be working one minute and not the next.  The wind (or cloudless sunny days) can not be scheduled.  The electrical grid operators must be able to rely upon the electrical generation units to provide the power needed to match the user’s demands.  The low cost plants, fueled by coal, natural gas or nuclear are used as the base load.  They are steady and reliable.   These base load units are not capable of rapidly increasing or decreasing the generation of electricity.   Delaware Power, like other producers of electricity have units on hot standby that can be put into service almost immediately to meet peak requirements by their customers.  And as this demand drops off, they can easily be backed down as necessary to stay in balance.

Why have wind farms unless they can provide base load electricity?  They cannot because these farms can not control the wind.    Often when very cold or very hot weather  occurs, the wind does not blow at all.   So instead of base loading they are relegated to being spot suppliers. It is widely understood that, on balance, for every kw of wind farm capacity that is brought on line, the equivalent amount of natural gas turbine capacity must also be added.    For skeptics of the theory of man-made global warming, the fact that windfarms did not result in any less CO2 vented to the atmosphere, is not a big concern.   But it surely should give the believers in manmade global warming a big case of indigestion.

BLUEWATER WIND

Delaware has an excellent source of information about BWW in the “Inside Energy” blog published by the Caesar Rodney Institute.   Recently they posted a blog  RE: Prediction: Bluewater Wind Project Will Crash and Burn. The blog notes that 2016 is the earliest startup date and adds:

The earliest start-up date for the offshore wind facility is now 2016 when the price will be $.142/Kilowatt-hour (KWh). Similar projects off the coasts of New England and Europe have set contract prices between $.19 and $.24/KWh. There is nothing magic about the waters off the coast of Delaware to justify the difference in price.

The higher prices in other locations already account for government construction subsidies which will come to $800 million for the Bluewater Wind project. However, the subsidies only extend to facilities built by the end of 2011. The US Congress, exhibiting symptoms of subsidy fatigue, may not extend the subsidies further for a mature industry that accounted for 39% of all new generating capacity in 2009. So an even higher price increase may be needed to sustain the project next year.

The wind project is expected to provide about 1.1 billion KWh of electricity a year. Wholesale power from conventional sources costs about $.06/KWH. The “Green Premium” for offshore wind power could range between $.08/KWH and $.20/KWh at full price with no government subsidies. This will cost Delaware consumers between $90 and $220 million a year.

There will be hearings on BWW in May and you are encouraged to join with the folks from the Caesar Rodney Institute.  Regarding this hearing they add:

NRG, the owners of Bluewater Wind, will have to seek a significant rate increase to justify the investment in its’ Delaware offshore wind project. The attempt could fail bringing the project to an end. The good news is this will save Delaware electricity consumers hundreds of millions of dollars a year in avoided price increases and could save hundreds of jobs.

In a future posting, I want to let you in on the reasons why there are many big companies pushing these windfarm schemes on the rate payers.

cbdakota