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
Cost Regulations
2015 ENERGY REGULATIONS LEAD TO HIGHER EQUIPMENT COSTS, BUT WILL THEY HELP YOU SAVE ON ELECTRICITY AND NATURAL GAS?
The Department of Energy has implemented new efficiency regulations on electric and natural gas water heaters as well as air conditioning equipment for 2015. The standards will make new equipment slightly more energy efficient, however, the savings will, for the most part, be insignificant. The increased cost of new equipment will be pricey for homeowners upfront. The resulting savings per household for reduced electricity and natural do pay for the upgrade.
The air conditioning equipment regulations went into effect on January 1, 2015. They apply to split air conditioners and heat pumps as well as traditional central AC compressors. The regulations call for new equipment to increase the Seasonal Energy Efficiency Ratio (SEER) from 13 to 14. The one point SEER increase is fairly negligible from a cost savings standpoint, but the reduction in energy usage across millions of household will add up. The one point translates to roughly 7% electricity savings per year for the average household. Based on national electricity usage and cost averages this would equate to savings of approximately $18 per year.
The most significant referenced downside associated with the new HVAC regulation revolves around the higher cost of the equipment and installation. New equipment will be larger and will likely require most all parts of the AC system to be replaced, not just the compressor. Also, because the equipment will be larger, some very small homes may require modifications to accommodate the larger equipment.
Regulations affecting water heaters run by electricity and natural gas took effect on April 16, 2015. The pros and cons parallel that of the AC standards. The new efficiency guidelines have resulted in more costly equipment. By some estimates new water heaters will cost roughly $120 more. In addition the new equipment means a more complex, time-consuming installation with more expensive parts. Electricity and natural gas savings will vary widely based on the size of your tank.
The changes the US Government is taking are part of a larger trend by all governments worldwide towards implementing more energy efficient regulation. Initial upfront cost is certainly a factor taken into account by such regulations, but cited more frequently are the health and environmental benefits that will compound yearly as a result of reduced emissions and improved air quality.
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 savings. Additional information: www.realgyenergyservices.com
Wind power…in all 50 states
Look outside: chances are you don’t see a wind turbine or a fifty story building. But, chances are, within 5 years, you will see a fifty story wind turbine!
Currently, the United States produces about 65 gigawatts across 38 states. However given the recent gains in technology, the Energy Department forecasts that wind power could contribute 16,150 gigawatts…this is 10x more power than we currently consume!
So will wind power drive our future. In will certainly be a growing contribution and here is why:
1. Climate change: the warmer the climate the more wind is produced
2. Larger Scale: as wind turbine design grows the economics for large scale development improve
3. Smaller Scale: new technology allows for efficient small deployment (think 1-2 homes)
Climate change is driving weather changes. These weather changes are becoming more pronounced. Weather forecasting is showing that current trends will continue resulting in wind speeds that provide for larger scale wind turbines.
Larger scale: Currently, the largest wind turbines are 260 feet. The higher the wind turbine reaches, the faster the wind blows so getting larger means you can install a wind turbine and compete with the economics of coal. Current designs are being planned for 460 feet; that’s nearly as tall as a fifty story building.
Smaller scale: a wind turbines without spinning blades! It looks like asparagus but rises between 25-100 feet depending on location. The trunk of the column spins (no blades) and the power is generated in the base. This type of wind turbine is safe for use in residential neighborhoods.
As we learn: With change comes opportunity and certainly power development and climate is changing.
Keep looking for the wind turbines, they are coming.
Realgy Energy Services provides power to Illinois customers that is produced from renewable resources such as solar, wind and hydro (water). It’s called ManagedGreenTM; it’s priced slightly below the utility cost of service and provides health and environmental benefits. Consider that the average mid-west home uses about 10,859 kWh/year if that power comes from Realgy’s ManagedGreenTM service it would result in the following benefits:
1. Reduction in 29,295 lbs. of coal/year
a. 7,595 lbs. of CO2 NOT emitted
b. No sulfur, lead or waste emissions
c. 29 fewer trucks on the road
2. Equivalent of 584 trees planted
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
Links to contributing articles:
http://www.iflscience.com/technology/new-bladeless-wind-turbine-looks-asparagus
The Cost of Lighting
TODAY’S LIGHT BULBS CAN SAVE YOU MONEY ON ELECTRICITY, BUT DID YOU KNOW THAT YOU CAN ALSO SAVE ON THE ELECTRICTY ITSELF?
The light bulb has come a long way. Today’s bulbs last longer and use less electricity, but despite the advances in technology they still lead to the consumption of considerable quantities of energy for residential and commercial electricity users. Lighting is responsible for consuming the second largest quantity of electricity in US homes, behind air conditioning. Moving towards a more efficient lighting solution with high efficiency light bulbs is a great way to save money on electricity, but some residents and businesses don’t realize that they could be paying less for the electricity itself.
Let’s first look at the light bulb as a source of savings. New laws have raised minimum efficiency standards for traditional incandescent light bulbs. Incandescent bulbs use a lot of energy to produce light; about 90% of their energy is given off as heat. The new laws require the most popular 60-watt bulb, for example, to be roughly 25% more efficient. Today’s two most popular alternative bulbs far exceed those regulations. They are the compact florescent lamps (CFL’s) and light emitting diode (LED). CFL bulbs that are energy star qualified use about 75% less energy, and can last up to ten times longer than traditional incandescent. LED’s use about 85% – 90% less electricity and will last up to twenty five times longer. Furthermore, LED bulbs continue to improve in efficiency and quality. The below chart shows how LED bulbs compare to the other leading options.
New lighting technologies make it possible for both residential and commercial electricity customers to cut energy usage and reduce electricity costs, but now let’s consider the electricity itself. Not everyone is utilizing the most efficient solution available. Utilities provide one option, however residential and business customers have the option to choose their electricity provider in markets with electric choice. The right provider can often help deliver the same electricity for less than the utility.
Realgy Energy Services provides an excellent alternative to the utilities by helping customers accomplish their energy savings goals through strategic energy plans. Realgy Energy Services spends 1-2 years conducting analysis and modeling area’s energy requirements, energy costs, utility delivery rules, etc. As a result when we approach potential clients we are ready to offer an effective plan that will provide real savings. When you combine the lower cost of your energy consumption by using energy efficient light bulbs, with the lower cost of the electricity, the savings can be significant.
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
Ameren Capacity costs increase 10 fold, what does it mean?
It was big news; the wholesale energy market in Illinois received National attention …for the highest capacity costs in the Midwest (for the wrong reason)!
The wholesale price went from $16.75 per MW-day to $150; a near 10 fold increase for the coming year.
What does that mean if you are an Ameren customer:
- Everyone who takes electric service from Ameren will pay more.
- Residential customers about $150 more
- Industrial customers anywhere from $10,000 to $1,000,000 / month
- If you are an energy customer with an energy marketer
- Your costs may not go up, however watch your bill
Can you avoid this increase: YES
Realgy contracts with the power suppliers that are not covered by the Ameren bid process. Realgy’s capacity costs have not increased.
Realgy Energy Services is a registered Retail Energy Supplier in Illinois serving COMED, Ameren and MidAmerican – Illinois.
Please contact us to discover how we can save you on your natural gas and electivity while providing award winning service: A+ rating with the Better Business Bureau.
http://www.midwestenergynews.com/2015/04/22/illinois-lawmakers-question-miso-about-capacity-auction/
Chicago sending city households back to ComEd
Crain’s recently reported that after more than 1 year of charging customers MORE than COMED and the City will send them back to the utility (AFTER the summer)!
http://www.chicagobusiness.com/article/20150421/NEWS11/150429969
No one likes an “I told you so”…..so I won’t say it.
One year ago: I posted: Chicago electric bills to rise up to 18% in June
http://realgyenergyservices.com/chicago-electric-bills-rise-18-june/ which included the following:
The idea is that “aggregation” of the residents will provide the marketer the ability to deliver a lower price. If that were the case, no one could beat the utility because the question is who would be a bigger aggregator than a utility? The utility AGGREGATES everyone in the state. Yet, Realgy beats ComEd and Ameren consistently. So why can’t municipalities come in lower?
The difference is cost of service and overhead.
Municipalities require energy marketers to deliver savings compared to the utility, take on billing and collections, and pay the municipality a portion of the margin. The simple fact remains; the cost municipalities want to collect makes them higher than the utility.
Realgy continues to post savings compared to both COMED and Ameren.
To learn more about how Realgy Energy Services’ variety of programs that can help you save money on electricity, call 877-300-6747, or visit www.realgyenergyservices.com.
Realgy Energy Services is a registered energy marketer with a A+ rating with the Better Business Bureau and able to save you money on your natural gas and electricity usage anywhere in Illinois.