MidAmerican aiming for 57% of energy from wind
In another sign of the growing importance of renewable energy, MidAmerican is proposing to construct a wind farm in Iowa that could provide more than HALF of the total energy it delivers.
Certainly more will be heard once the federal government releases more details about the Clean Power Rules. However, this is another example of how renewable energy (solar, wind and hydro) is becoming more common and reliable.
Consider that a utility like MidAmerican, that has tremendous coal resources, is willing to commit more than half of its expected need to renewable energy is a testament to the reality of climate change and that renewable energy is economically competitive.
May the times, continue to change.
Supporting Article:
What should the cost of electricity be?
What should the cost of electricity be?
Electric utilities are paid based on maintaining their distribution network (wire, poles, transformers, etc.) within their service area and receiving payments based on the cost of providing that service plus a profit. The electric utility business is a monopoly in that there is no competition to their service; therefore, their costs get scrutinized to determine if they were spent appropriately. Those costs that are deemed appropriately spent on necessary service are repaid plus a profit.
However, the price of electricity is no longer a monopoly. Electric pricing in Illinois is based on market conditions of supply and demand.
Most electric power in Illinois is purchased by customers (not utilities) and those purchases are direct between the customer and the energy supplier (marketer). That actual electricity comes from power plants. All the electricity purchased by customers flows through the utilities distribution network (COMED, Ameren or MidAmerican).
Large electric generators, like nuclear power plants, receive preference in operating due to the fact that they are most efficient when operating at full power. Smaller generators including coal and solar plants bid a price in the hopes of selling energy at that price.
Exelon, the owner of several nuclear power plants, is threatening to shut down 1 or more plants in Illinois UNLESS they get paid more.
Exelon is the parent company that owns many electric power plants and four large utilities (including ComEd and BGE).
Exelon’s threat seems to be a case of having your cake and eating it. They own utilities so they earn profit for spending money to provide service and they own power plants that must compete to earn money. They know the difference and should not try to alter market pricing to get preferred pricing.
Illinois should not reward Exelon’s bullying with more profit. The market can make up for the loss of electricity from shutting down inefficient power plants.
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. Additional information: www.realgyenergyservices.com
Supporting Articles:
Chicago Weekly Basis Report
What are basis? it’s the price difference between the price of an energy in one market and the price of an energy commodity in a completely different market.
Locational basis is the “different” market can be at a different location
Calendar basis risk, or calendar spread risk, is the risk that arises from hedging with a contract that doesn’t expire on the same date as the underlying exposure.
As an example, a large consumer of gasoline might decide to hedge their exposure to gasoline price by purchasing NYMEX RBOB gasoline futures. In this example, the consumer is exposed to calendar basis risk as NYMEX gasoline futures expire on the last day of the month prior to the delivery month i.e. the October 2013 RBOB gasoline futures contract expired on September 30, 2013. While many might assume that this consumer has no choice but accept the basis risk. There are other instruments which will allow them to mitigate their exposure to calendar basis risk.
What country produces over 100% of its electricity by wind power alone?
Denmark Just Produced 140% Of Its Electricity Needs Via Wind Power
…and exported the excess supply to Germany, Sweden and Norway. Imagine: 100% sustainable energy.
The majority of Denmark’s wind farms are located off-shore (nearly invisible from land). The US just approved its first off-shore windfarm…..perhaps 1 day we could be like Denmark!
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. Additional information: www.realgyenergyservices.com
Realgy owns and operates 4 solar plants located in Illinois producing nearly all the energy Realgy consumes in a year.
Supporting Documentation:
Read More: http://www.trueactivist.com/denmark-just-produced-140-of-its-electricity-needs-via-wind-power/?utm_source=fb&utm_medium=fb&utm_campaign=tmu
Where are the differences between an electric utility, Government regulators and energy companies in delivering renewable energy?
Look at the differences that emerge when an energy company wants to deliver wind energy generated in one state across three states.
The players:
- Utilities: these are regulated monopolies that generate and delivery energy to customers within their franchised area
- Government Regulators: oversee Utilities within their state
- Energy companies: offer alternative energy service to customers wherever customer choice is allowed
Today, there is no National Energy Policy which encourages the distribution of renewable energy. Utilities are required to look only within their state. Government Regulators oversee Utilities only within their state. Energy Companies which are not bound by state boundaries look to address the national need for clean, renewable energy.
A power line in Missouri was denied by the Missouri Regulators because it did not show enough benefits for state residents. However, it should great benefit to the Country.
While the Federal Government promotes the installation of renewable energy, this example highlights the need for a National Energy Policy to support competitive energy supply at the wholesale transmission level.
By way of background, Utilities have separated their business into 2 different parts; energy supply and distribution (delivery of the power through the wires). A utilities’ business remains the same; provide electric service within their franchised area or jurisdiction. However, most states have introduced competition for energy supply. Competition allows Energy companies to serve business or residential customers directly by offering a wholesale electricity price that the Utility cannot markup or add additional costs.
Electricity is generated and traded at a wholesale level on a regional basis. Utility Regulators oversee the utilities within their State. Energy Companies usually acquire wholesale power at the regional level and have it delivered to the local Utility. The Utility still delivers the electricity regardless of who you bought it from.
Government Regulators oversee Utilities because they still have a monopoly to serve customers. The Regulators job is to oversee the Utilities within their State and review the costs and expenses of the Utility. A Utility recovers costs incurred in providing service to customers (delivery and energy supply) which are approved by Regulators.
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. Additional information: www.realgyenergyservices.com
Supporting Documentation:
Realgy supports fair competition and is passing along the Deceptive Practices Warning from SEMCO
FOR IMMEDIATE RELEASE
Media Contact: Timothy Lubbers
Director of Business Development
Phone: 810-887-4208
SEMCO ENERGY WARNS OF POSSIBLE DECEPTIVE NATURAL GAS TELEMARKETING; CUSTOMERS ADVISED TO GUARD PERSONAL AND ACCOUNT INFORMATION OVER THE PHONE
PORT HURON, MI, July 07, 2015 – SEMCO ENERGY GAS COMPANY is alerting customers of possible deceptive telemarketing tactics targeting natural gas customers in the SEMCO ENERGY service areas.
The Gas Company has received numerous complaints of customers being called by people claiming to be with SEMCO ENERGY, offering to put them on a special rate and asking for personal information including the customer’s account number.
SEMCO ENERGY does not telemarket customers and ask for account information. Customers are advised to be mindful about sharing personal information, including natural gas account information that they provide in telephone or door to door solicitations. If you have questions about being contacted by someone claiming to represent SEMCO ENERGY, please call 1-800-624-2019 or e-mail customer.service@semcoenergy.com. All SEMCO ENERGY field personnel carry SEMCO ENERGY photo identification.
SEMCO ENERGY customers have the option to buy their natural gas from an alternative gas supplier, however, SEMCO ENERGY does not solicit customers to sign up for the Gas Customer Choice program. The Michigan Public Service Commission (MPSC) provides a list of all alternative gas suppliers licensed in Michigan on the MPSC web site: http://michigan.gov/mpsc/0,4639,7-159-16385_17144—,00.html. The site includes information about the gas customer choice program and a section showing authorized alternative gas suppliers active in SEMCO ENERGY service areas.
If you would like to lodge a complaint about an alternative gas supplier or their marketing practices, please contact the Michigan Public Service Commission at 1-800-292-9555.
Information about the Gas Customer Choice Program and alternative gas suppliers, including suggested questions to consider when selecting an alternative supplier, is also available on the SEMCO ENERGY GAS COMPANY web site, www.semcoenergygas.com. Just click on Natural Gas Customer Choice Program to the left.
SEMCO ENERGY Gas Company, headquartered in Port Huron, Michigan, is a regulated public utility that delivers natural gas to approximately 293,000 residential, commercial and industrial customers in Michigan. Service territories include portions of the southern half of the state’s Lower Peninsula (including in and around the cities of Albion, Battle Creek, Holland, Niles, Port Huron and Three Rivers) and in the central, eastern and western parts of the state’s Upper Peninsula.
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. Additional information: www.realgyenergyservices.com