“American energy has become remarkably cleaner in the past twenty years; the marketplace, not government mandates, are driving today’s ingenuity in the energy sector; consumer cost and grid reliability are not of less concern than environmental goals; and no sensible energy policy moves us forward by leaving fossil fuels, hydro, and nuclear behind.”

Senator Jeff Bingaman’s Clean Energy Standard (CES) notably improves upon his earlier push to require utilities to generate 20% of their power from renewable sources such as solar and wind power (but not existing hydroelectricity and nuclear power, much less what might emerge from carbon capture technologies at coal plants).

This time around, there is a wider range of energy technologies to bring down the sticker shock of mandating politically correct (but market incorrect) energy to American electricity users.…

In Part I of this two-part post, we presented our observations of a power generation industry that will likely become more dependent on natural gas as a source of fuel for new power plants constructed in the coming years. Other fuel-based technologies (principally nuclear and coal) don’t seem to have the wherewithal to grab a larger piece of what should be a growing demand for electricity in the U.S. Both will be lucky to maintain their market share in the future. Renewables, with high levels of production tax credits, coupled with legislative mandates, will continue to grow in installed capacity but will contribute little to peak demand reduction. And should politically correct renewables (not hydropower) lose part or all of its government support, say as part of a deficit reduction program, then market share will actually be lost.…

Ed. Note: The news about nuclear is not good, which has been true for the last 70 years. Kennedy Maize at the Quad Report has the latest.

Holtec Decommissioning Scandal (800 MW Palisades)

New Jersey-based Holtec International on January 30th  agreed to pay its home state a $5 million fine in order to avoid criminal prosecution for falsifying documents related to a 2018 state-awarded tax break program.

The development in New Jersey could scuttle widespread rumors, most likely spread by Holtec, that the U.S. Department of Energy is about to loan the company $1.5 billion for its project to recommission the shuttered 800-MW Palisades nuclear plant in Michigan. Bloomberg first reported the rumor, commenting that the DOE loan would be “the latest sign of strengthening federal government support for the atomic industry.”…

“While limited, customer choice and utility switching in Georgia has a large impact on the utility behavior and regulatory policies. Because of options, utilities try to treat customers like, well, customers. But it is time to promote markets in place of remaining governmental mandates and controls.”

The prevailing goals sought by those seeking reform in the power market are mandated access and common carriage for state regulated utilities. However, this alternative is at odds with unleashing entrepreneurship in this power market. The far better development would be the spontaneous, voluntary, indigenous, bottom-up approach for the development of market relationships rather than government mandates.

The state of Georgia has a system that is near such a market. With a few changes, a truly liberalized market is possible. The ninety different utilities in the state share the high voltage system in common.…