Tuesday, January 17, 2012

Kilowatt Price Falls--Except Where Regulation Increases It

Interesting item here.  The Doylies/Green Weenies cost you a lot of money.

...Mirroring the gas market, electricity prices have dropped more than 50 percent on average since 2008, and about 10 percent during the fourth quarter of 2011, according to a Jan. 11 research report by Aneesh Prabhu, a New York-based credit analyst with Standard & Poor’s Financial Services LLC. Prices in the west hub of PJM Interconnection LLC, the largest wholesale market in the U.S., declined to about $39 per megawatt hour by December 2011 from $87 in the first quarter of 2008.  --JunkScience quoting Bloomberg

In Wisconsin, however, electric rates are holding steady or moving upwards, due to the utilities' willingness to provide "renewable" energy.  That, along with the compliance-costs of the new Oak Creek coal-burners, insures that ratepayers will be paying the GreenGoddess for quite some time into the future.

Other utilities aren't quite so......ahhh........expensive:

...With abundant new supplies of gas making it the cheapest option for new power generation, the largest U.S. wind-energy producer, NextEra Energy Inc. (NEE), has shelved plans for new U.S. wind projects next year and Exelon Corp. (EXC) called off plans to expand two nuclear plants. Michigan utility CMS Energy Corp. (CMS) canceled a $2 billion coal plant after deciding it wasn’t financially viable in a time of “low natural-gas prices linked to expanded shale-gas supplies,” according to a company statement.

IOW, since WEnergies rolled over to the Doyle/Greenies, we pay.

5 comments:

Deekaman said...

MACT and GHG will kill coal-and oil-fired power. Fracking and consequently the gas market will be killed by "earthquake" or "concerns about groundwater". Nuclear is all but dead, in spite of pronouncements to the contrary. Without Yucca Mountain and with the government closing off large tracts of land to uranium mining, it is done. I see in BizJournal that someone thinks a big ol' solar plant will work well up here.

Doomed. Doomed, I say.

neomom said...

I'd like to say you were wrong Deek, but that is pretty much exactly what we are seeing... Sigh.

Deekaman said...

Is it ironic or paradoxical that we are buying energy and raw materials from our enemies.

neomom said...

Ironic, paradoxical... Or just plain stupid.

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