How Utility Gas Pipeline Infrastructure is Paid For
When a monopoly (energy Utility) wants to spend money, it normally follows a three step process:
- Submit details of cost expenditures and the corresponding consumer benefits
- Get approval from the state regulator; this requires public hearings
- After the monies were spent on what was approved, demonstrate the benefits were delivered
Think about that; the utility makes the case to spend money offering benefits such as improved reliability (less costs on emergency repairs) or lower costs of operation. Then once completed, the benefits must come; otherwise, they don’t get to recover their costs.
The utilities have to make reasonable and prudent recommendations. The regulators must carefully consider the costs and benefits. Once approved, the utilities must get the construction installed at the price quoted. After it’s constructed the utility must demonstrate the benefits.
Any short cut to this process and more than likely the consumer pays for it.
Many utilities (and utility regulators) are realizing that much of the installed pipelines are approaching their end of life. This will require digging them up and replacing them. Very expensive. So utilities and their regulators are proposing ways to reduce these costs.
However, regulators should not reduce their oversight. Too often lapses in regulatory oversight leads to costs overruns and shortcuts which all but eliminate benefits to consumers.
The following article is a great example of how a monopoly gas utility in Kansas and their regulators are dealing with it. It is very representative of the process occurring in every state.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional Information:
First Ever Criminal Charges Assessed for Lying to FERC
Déjà vu all over again. Another manufacturer has lied about its emission and tried to conceal and it’s not Volkswagen.
A first-ever criminal charges brought by the Federal Energy Regularity Commission (FERC) against Berkshire Power.
Berkshire Power operates power plants and manufacturers electricity. In the course of their operation, they have to file with FERC emission data. They knowingly submitted information they knew to be false in order to gain more favorable dispatch (electric production).
FERC alerted the Environmental Protection Agency and state authorities to tipping them off these power plant emission’s looked wrong.
Knowingly submitting false emission data violated the Clean Act Air. Due to their reported “lower emissions” these power plants were dispatch more often which violated the
Federal Power Act (FPA). Essentially the FPA ensure fair trade which relies on accurate data.
Realgy supports the enforcement of both the Clean Air Act and the FPA as ensure a free and fair market.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional Information:
The difference between the US and China as seen thru the electric grid
So what does it look like to build a high voltage transmission network (think those large metal structures and wires you see near the highways) in the US vs. China?
In China, it takes the Government declaring it to be built. The Government then acquires the land and hires the contractors.
In the US, private developers or utilities have a longer process. First, they must gain approval by each state (sometimes each county) along with the Federal Government and each landowner. Then raise the money necessary to design and build it. Needless to say, China can move faster in constructing such infrastructure.
Both countries are in the process of constructing transmission networks connecting the areas where high wind and solar production are possible to the cities/factories where that power is needed. This is an enormous undertaking by both countries.
The only way that either country can reduce its dependence on fossil fuel generated electricity is first to construct transmission towers to bring the solar/wind generated energy to where it is needed.
China’s approach might be quicker but it comes at a cost of fair markets, environmental consideration and public vs. private economies.
Both countries will pursue renewable energy development and the global environment should benefit by reducing greenhouse gases. The pace of the change will be interesting to watch.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional Information:
http://www.vox.com/2016/3/30/11332900/china-long-distance-transmission
Out of Work because of Springfield Standoff
On March 30th 2016, Illinois earned the distinction of being the state operating the longest without a budget. A terrible distinction that might ultimately bring about some change; however, the process has proven to be inefficient and brutal.
Looking at just how energy efficiency and clean energy jobs in the state have been effected. Everyone in Illinois pays a tax on their electric usage. The tax is earmarked (dedicated) to funding energy saving or clean energy projects in the state. These funds HAVE been collected; however, they cannot be spent. The reason, of course, is that without a budget the allocation of the funds is not authorized (yes, they were collected for this purpose).
The result, projects will not be completed and jobs have been lost. This same story can be retold in many industries.
However, if this budget impasse is not resolved before May 31 the monies collected for the fund will evaporate (be returned to the general assemble for use wherever they want to allocate them). So jobs will be lost, the state will not benefit from clean or renewable energy and the politicians will get more money to spend on what they want. This is progress?
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional Information:
DOE EIA Weekly Gas Storage Report
Working gas in storage was 2,468 Bcf as of Friday, March 25, 2016, according to EIA estimates. This represents a net decline of 25 Bcf from the previous week. Stocks were 1,002 Bcf higher than last year at this time and 843 Bcf above the five-year average of 1,625 Bcf. At 2,468 Bcf, total working gas is above the five-year historical range.
Estimated withdrawal is between 20 Bcf and 24 Bcf
Vs
Actual withdrawal 25 Bcf
Analysts predict net withdrawal while this week’s storage report is expected to be a reversal from last, as a net withdrawal is the expectation of analysts for the week ended March 25. A consensus of analysts surveyed by Platts expects that the EIA will estimate a withdrawal of between 20 Bcf and 24 Bcf for the reporting week that ended March 25. A withdrawal within expectations would be more than the 10 Bcf withdrawal reported at this time in 2015 and directly in line with the 22 Bcf five-year average pull, according to EIA data. A withdrawal of more than 22 Bcf would mark only the second time this year that the pull was larger than both the five-year average and last year’s withdrawal in the corresponding week. The last time it occurred was for the week that ended January 22
The $2.5 billion U.S. transmission line that no state can stop
As previously discussed, private industry is pursuing the development of renewable power and the transmission of that power to where it can be used.
They have gained a formidable ally.
The US Government.
Because the transmission line crosses state boundaries, it can be reviewed and approved by the Federal Energy Regulatory Commission. Recently, they reviewed and approved 1 of 4 transmission projects under development: the Plains & Eastern. This approval means it supersedes state approval process and allows the project to proceed.
Without allowing for transmission lines, the power remains locked in the Midwest where the wind is ideal for wind turbines to generate electricity. The transmission lines being proposed will bring that wind generated electricity to population centers; where it will displace coal and natural gas generation.
Realgy Energy Services is a registered Retail Energy Marketer in the states of Illinois, Michigan and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional Information:
http://realgyenergyservices.com/state-sen-kyle-mccarter-opposes-wind-energy-project/