[Watchdogs] 0607_RateMap.pdf (application/pdf Object)

[iMark Glover]

Christine,

 

Here is my opinion on these price chart your reference from the Energy
Information Administration (EIA), without doing a lot of research:

 

This raw data is over two years old.  Current data would show a different
picture.  

 

Second, the Texas generation portfolio is heavily weighted with natural gas,
and getting more dependent on gas.  At this point in time (2007), gas prices
were very high.  

 

Third, Texas has fortunately had healthy growth in recent decades.  Most of
the Texas electric generation fleet is newer and more expensive than the
national average.  Many states with stagnate growth rates have old dirty
coal plants that were amortized out long ago, and therefore produce cheap
power.  

 

Last, deregulation was dysfunctional, in my opinion, at this point in time.
Several large players (merchant generators like TXU and Reliant) gamed the
new Texas deregulated system that the state legislature put in place and
made windfall profits off the re-regulation of power generation (aka
deregulation).   All this, temporarily, has meant higher generation costs
for Texas, but this is probably not the case forever.  

 

If the proposed carbon taxes are passed (Cap & Trade or whatever), those
states with heavy portfolios of dirty coal plants will pay a big price for
electric generation.  They will have to spend big dollars to build new and
cleaner generation or retrofit old coal plants for cleaner emissions.  Texas
may not be as bad off as these charts appear and some think.  ERCOT is
probably over 80% dependent on natural gas generation at present (not sure
exact).  The down side for Texas is the volatility of natural gas prices,
which will go up in the future and we will all feel in our electric bills.  

 

The Bottom Line in my opinion - we are not that bad off with our state
average power cost.   The Bad News - Electricity will probably go up a lot
and be volatile in the future, following natural gas prices.  Good News -
Electricity will probably go up a lot more and stay up for states with heavy
coal generation.  We all need to tighten our belts and get very efficient
with electric use and the management of our cooperatives.  These problems
occur over long periods and there are no quick fixes.

 

Best Regards,

Mark Glover

CoServ Director

 

From: watchdogs-bounces at pec4u.org [mailto:watchdogs-bounces at pec4u.org] On
Behalf Of Christine - ckf
Sent: Wednesday, June 10, 2009 4:22 PM
To: PEC Watchdogs
Subject: [Watchdogs] 0607_RateMap.pdf (application/pdf Object)

 

Why do we have the highest rates in the United States?
http://www.kaec.org/images/stand/0607_RateMap.pdf 

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