Capitalism Will Win Over Government Intervention.
CAPITALism
In theory, markets (demand for a product along with price, service, and convenience) set the price. To operate efficiently, competition is required. Few markets face more competition than the power markets in the US.
Recently, the government has interfered with not only the theory, but the practice, of power markets. Examples include requiring certain power plants to continue to operate, requiring certain customers to receive wholesale power rates, or casting aside environmental or societal benefits to favor a different fuel.
However, as has been said, capitalism is the most powerful force ever unleashed.
In this current example, the government has dictated that coal plants continue to operate instead of retiring as planned. The result: power prices are staying high, and the expense of continued operation of these decrepit facilities is adding to electric price inflation. No investment is being made in them, rather just short-term fixes to meet the government demand to keep them operating.
Being displaced, as electric demand is being met by the coal plants, are numerous built and planned power plants that could operate at lower cost and with lower environmental impact (which is a cost).
The companies operating these coal plants are not confused. They understand it is a political action, which too shall pass.
Capitalism will win.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois and Indiana. We offer Service Plans that provide electric and natural gas at wholesale pricing directly 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 Savings™, ManagedPrice™, ManagedGreen™ Index, Fixed, and PriceAssurance™.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations. Soon to be 12 with the inclusion of Highland Park’s newest recreation center, West Ridge Center,- New Community Recreation Facility Coming in 2026 | Park District of Highland Park
Additional Information:
Trump is keeping coal on life support. How long can it last? | Grist
Solar and wind are meeting — and exceeding — new power demand
Global electric demand grew last year. Probably not a surprise given the energy demands coming from AI (artificial intelligence) and data centers.
However, unless you are in the energy business or closely follow economic news, you might be surprised to learn what is supplying that growing electric power demand.
If you were listening to business news or momentum investing, startups in nuclear energy went up 200–300 percent. Fossil fuel generation declined across all geographies. In the US, utilities in high-demand regions (where data centers are being built) went up due to their monopoly on delivering power, while independent power generators went up twice as fast
As the chart above shows, power demand grew and was primarily met with wind and solar. This is not news in the energy industry.
Shows like Land Man (Netflix) promote the fossil fuel industry’s gripes against wind and solar, but the reality is they are the least-cost option for supplying electricity in almost all markets.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, 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 Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations. Soon to be 12 with the inclusion of Highland Park newest recreation center West Ridge Center – New Community Recreation Facility Coming in 2026 | Park District of Highland Park
Additional Information:
Chart: Solar and wind are meeting — and exceeding —… | Canary Media
MF’ing Wind Farms: Samuel L. Jackson Said It Best
Reality vs. opinion, the rule of law, the need for real power, and the impact of fossil fuel use in energy production
All of these issues are at play with the Trump Administration’s cancellation of wind farm projects.
Adding a touch of comedy, Samuel L. Jackson offers a humorous perspective.
Projects that were nearly completed, along with those that had spent years in planning, development, and government review, have been brought to a halt by Trump officials. Their actions question permits, raise “national security” concerns, and highlight supposed financial risks.
In most cases, the courts have found these attempts to be unlawful. However, they continue.
Wind power requires no fossil fuels to produce electricity; none.
It may be true again; humor is the best medicine. It seems to cut thru the nonsense.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, 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 Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations. Soon to be 12 with the inclusion of Highland Park newest recreation center West Ridge Center – New Community Recreation Facility Coming in 2026 | Park District of Highland Park
Additional Information:
Virginia Case for Adding New Generation Today
How to Reconcile So Many Different Messages
Over 10 years a consensus has been reached that recognized:
• The climate crisis will cause the Earth’s temperature to rise 2.5 degrees within the next decade.
• Fossil fuel usage is a primary contributor to climate change.
• Federal and States issued laws created incentives to curtail fossil fuel use.
• Solar and wind power, which COST LESS than fossil fuels, are permitted and are currently under construction.
And now, science, costs, and climate concerns are being dismissed and replaced instead by opinions.
Consider:
Virginia passed a law phasing out fossil fuels out by 2045. The state has already incurred billions in costs tied to climate change. New construction and proposed solar and wind power plants were forecasted to meet rising demand and nuclear power was encouraged.
To capture additional business from AI data centers, Virginia is forecasting even greater energy demand. Consider the impact of NVDIA’s chip production for next year was 9% of the total US energy demand for 2024; Read More.
Instead of complying with law, Virginia’s largest utility is asking permission to build 944 MWs of natural gas fired generators.
Regulators reviewing the request concluded:
- The “cold snap” weather event used to justify construction was “unpersuasive”.
- Power exports to neighboring states continued during the “cold snap”.
- Load growth was within generation capabilities of existing power generation.
- Economically, construction of natural gas generation would increase electric costs for customers.
- No alternatives were offered.
Today’s politics are undoing more than a decade of scientific, economic, and environmental progress.
10 years from now, when these politicians are long gone, this decision (and those like it) will be costly and will be deemed wasteful and will bring us closer to environmental harm.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, 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 Index, Fixed and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations. Soon to be 12 with the inclusion of Highland Park newest recreation center West Ridge Center – New Community Recreation Facility Coming in 2026 | Park District of Highland Park
Additional Reading:
Virginia’s data center boom tests clean energy law | Canary Media
How The Electric System Can be Gamed
Ever get the choice you think sounds reasonable? For example, here is the new car you wanted. Only to find out it’s not new; it’s a lease, and you owe $1,500 / month in insurance.
So it is with the energy system.
Background. Utilities are monopolies in that only they can deliver power within their franchise territory.
ISO (independent system operators) act as the wholesale market. In their territory, they control which power plants are interconnected and pay for their power.
FERC (Federal Energy Regulatory Commission) they are responsible for having a national view (think for the Country). Ensuring the power markets work without unfair competition by ISO, utility, or state regulators.
The choice. Fast-track any “shovel ready” utility fossil fuel power project and grant interconnect approval within 90 days.
MISO’s proposal to alleviate real congestion, and seasonal demands (cold and heat) would authorize only utilities to receive approval for new power projects.
The decision. No from FERC.
MISO (an ISO), which oversees the electric grid across a large portion of the Midwest, is not alone in facing a clogged interconnection process that’s preventing it from swiftly adding new generation to replace coal and keep up with demand. FERC rejected the organization’s plan to address it by fast-tracking new gas plants, marking a win for clean energy advocates.
Some Reality.
The reality is that MISO has 100s of gigawatts of power projects in the queue awaiting approval. The difference is these are NOT utility-owned and are primarily fueled by solar, wind, and battery installations.
FERC saw this effort to address a real problem as an end-run around “reasonably balanced” options. The existing queue of power projects earned their spot by being economically better than alternatives, situated in needed areas, and financially capable of being built and operated without consumer impact.
Sometimes the solution is taking advantage of the problem.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, 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 Index, Fixed, and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations.
DOE EIA Weekly Gas Storage Report
Working gas in storage was 3,412 Bcf as of Friday, December 9, 2022, according to EIA estimates.
This represents a net decrease of 50 Bcf from the previous week. Stocks were 18 Bcf less than last year at this time and 15 Bcf below the five-year average of 3,427 Bcf. At 3,412 Bcf, total working gas is within the five-year historical range.