MI Lawmakers target electric cars to fund roads
So, the theory is; that state and federal taxes on gasoline purchases fund road construction and maintenance. Yes, that is theory.
In practice, the gas tax goes to the general fund and is used at the discretion of lawmakers.
So, it’s interesting that the some 5% of car owners that own electric or hybrid vehicles would be targeted for a tax increase.
Yes, some MI lawmakers think of these car owners as not paying their share for road maintenance because they do not purchase gasoline (or purchase less of it).
Ah, theory…..
In reality; there are not enough electric or hybrid cars to make a real difference and taxing them with the idea that it would actually contribute to road maintenance…. sounds like a dead end to me.
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: www.realgyenergyservices.com
Supporting Article:
http://www.htrnews.com/story/news/2015/11/02/lawmakers-target-electric-cars-fund-roads/75049254/
MI utilities are misleading you….
MISO area of electricity control is shown below in Green
If you don’t have a cup of flour but your neighbor does, can you still bake your cookies? Sure, you borrow a cup and share the cookies.
A Michigan marketing group, on behalf of two MI electric utilities, is running advertisements trying to say that the closing of state coal fired power plants will leave MI without energy. This statement is WRONG. Michigan like most of Illinois, Missouri, Minnesota, Wisconsin, Louisiana and Iowa are all interconnected with Michigan. That is; each state’s energy generation and electric consumption is shared amongst all. A shortfall in one state is met by a surplus in another state. The electric transmission system ensures the power is delivered.
So MISO, which stand for Midwest Independent System Operator, is responsible for the electricity throughout the Midwest. Their forecast; a surplus of energy for the foreseeable future.
MI utilities want to retain coal generation to improve their companies economics. It has nothing to do with supplying power. In fact, retaining those coal fired power plants will prevent cleaner and renewable energy resources from generating electricity.
So don’t believe the scare tactics that you might see. If MI utilities want to retain coal generation, they can choose to do so. Modernize them and keep them viable. That way, they can serve the public and their companies honestly.
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: www.realgyenergyservices.com
Supporting Article:
We live in a dumb grid, but we can drink Smart Water!
Smart water right; filter it, juice it up with some vitamins and its smart. Not sure paying more for it qualifies as smart, but you don’t have to buy vitamins separate from water ….
The distribution systems, those complex networks of pipes and wires that delivery natural gas and electricity, are called grids.
Putting meters on them and connecting them to the internet; smart right?
Utilities get paid based upon measuring how much energy you use and charging you for it; in fact, energy marketers receive the same information from the utilities. However, does collecting information on your usage every 15 minutes instead of every month make anyone a better energy consumer, utility or energy marketer?
Certainly, putting measurement devices (not called meters anymore) in the grid is expensive and the utilities want you to pay for it. Is it cost effective; that is, do the measurement devices provide a benefit that is equal to or match to the investment? The answer at present is definitely no.
So why proceed? That answer lies in the realm of politics and utilities earnings based on spending money (see link for more on utility operation of metering) http://realgyenergyservices.com/chicago-homeowners-get-zapped/).
Evolving toward measuring energy consumption in near real-time will mean that consumers will be exposed to market pricing with little to no damping by the utility or energy marketer. This, of course, is what we are used to; supply and demand in an e-commerce world. However, it might be different with utilities as it is with water.
Realgy supports the investment by utilities in technology that is cost effective and provides benefits to the consumer.
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, MangedPriceTM, ManagedGreenTM as well as Index, Fixed pricing.
Additional information: www.realgyenergyservices.com
Supporting Documentation:
Weekly Basis Report
Here is the weekly basis report which is representing the future price change when trading natural gas, the quoted price is the difference between the Henry Hub price and a specific location’s price – called the basis price. A basis position is one that has exposure to two different locations: the Henry Hub and separate location’s price.
Here are some basic understanding on how to measure natural gas:
A BTU is the amount of heat required to increase the temperature of a pint of water (which weighs exactly 16 ounces) by one degree Fahrenheit.
Since BTUs are measurements of energy consumption, they can be converted directly to kilowatt-hours (3412 BTUs = 1 kWh) or joules (1 BTU = 1,055.06 joules).
MBTU stands for one million BTUs, which can also be expressed as one decatherm (10 therms). MBTU is occasionally used as a standard unit of measurement for natural gas, and provides a convenient basis for comparing the energy content of various grades of natural gas and other fuels.
One cubic foot of natural gas produces approximately 1,000 BTUs, so 1,000 cu.ft. of gas are comparable to 1 MBTU.
MBTU is occasionally expressed as MMBTU, which is intended to represent a thousand thousand BTUs
Cogeneration is not Deregulation
Indiana is in the midst of trying to address its high cost of electricity. Two trade associations are facing off; the industrial trade association wants to be able to build cogeneration plants (very efficient plants that produce electricity and heat) while the utility trade association doesn’t want competition on other energy sources. Both trade associations miss the evolution of energy deregulation.
Energy deregulation started during the oil crisis (late 1970s early 80s) and initially the “deregulation” manifested as competition on constructing new power plants. That is: before a utility could build a new power plant, it had to put out to bid what it was going to build and the price and see if others could build it for less and with different fuels.
The second phase of energy deregulation occurred with energy supply to customers (natural gas and electricity). First came large energy users followed over time by residential consumers. During this phase of energy deregulation, the utility became a delivery company and the energy supply (natural gas or electricity) could be purchased from the utility or other energy suppliers.
A review of the facts of energy deregulation over the last 30+ years illustrates:
- The utility model of regulated competition has been demonstrated to cost more than direct competition.
- Power plants should be sited to allow for the efficient use of its output (both the heat and the electricity)
- Customer should be allowed to choose their energy supply. Competition for retail customers in energy supply has demonstrated lower costs, improved efficiency and greater service options.
- Utilities should continue to operate their monopoly on energy delivery
Hopefully, the Indiana legislators review the history and benefits from energy deregulation.
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, MangedPriceTM, ManagedGreenTM and Index, Fixed pricing.
Additional information: www.realgyenergyservices.com
Supporting Article:
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:
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:
Indiana’s Electric Rate Hurts Competitiveness
One measure of competitiveness is the price of electricity in a State.
Indiana has gone from 5th lowest in the Nation in 2003 to 26th in 2014 (electric rates went up)!
Surrounding States have all improved (lowered their electric costs).
A major difference: all surround States have implemented electric choice.
Electric Choice allows customers to purchase their energy from a wholesale supplier without any utility markup. The idea: give customers a choice and direct access to the energy markets and have competition do what competition does; lower costs and improve services.
In Illinois, not exactly the most business friendly state for taxes, electric savings have exceeded $37 BILLION. http://realgyenergyservices.com/competition-work-tune-37-billion/
In NIPSCO and Citizens Energy, where they have customer choice programs for natural gas customers, Realgy’s average customer is saving money monthly:
- Citizens Energy: over last 36 months savings of $6,643: http://realgyenergyservices.com/service-plans-52/
- NIPSCO: over last 36 months savings of $6,581: http://realgyenergyservices.com/service-plans-47/
In Indiana: some of the biggest utilities do not offer customer choice for natural gas service; this includes Vectren, Duke and AEP. No utility in Indiana is offering customer choice for their electric service.
Competition in energy markets has been demonstrated to lower costs. Surrounding States’ to Indiana have lower electric costs in-part because of implementing electric choice. Natural gas costs are more competitive in NIPSCO and Citizens due to customer choice.
Realgy supports customer choice for energy, our experience has demonstrated that it saves consumers time and money in energy use and decisions.
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 Article: http://www.nwitimes.com/business/industry-indiana-electric-rates-hurt-competitiveness/article_a10b7072-4e2f-51a7-8ed0-0b99c4e4ce01.html