Charles Bayless: Engineering Climate Change Challenge
“The people who say solar is as cheap as coal are right on a per kilowatt-hour basis. But a lot more goes into the cost of electricity than kilowatt-hours. They are wrong if you compare the cost of reliable delivered energy from renewables with that of fossil fuel.
Renewables cost a lot more. I compare it to copper ore. You can't sell copper ore for the price of refined copper. That’s what many renewable energy providers are trying to do with net metering. They are trying to sell ‘unrefined’ energy for the full price and let the utility refine it for free.
If you don't believe renewables cost more, go to Ontario or Germany. I was on the board of the Ontario power authority when we totally phased out coal, and I am very proud of what we did. But rates went up. Governments must make the trade-off between the cost of current electricity and their grandchildren’s future. Ontario made the right choice.”
Robert Borlick: Jousting at Windmills
“Consider this: instead of subsidizing these offshore wind projects, suppose the Comptroller of Maryland were to cut ninety-seven hundred checks for a hundred thousand dollars each and randomly send them to the state’s unemployed construction workers. Wouldn’t everyone in Maryland be better off?
The workers would enjoy the same income without the hassle of going to work each day and electricity consumers would incur much smaller bill increases. This farcical proposal suggests that there must exist better, cheaper ways for the state to create jobs and promote economic growth than investing in these outlandishly expensive projects.
The term cost-benefit analysis referenced in the Act implies that costs should be compared with benefits, expressed in comparable units of measure. The Act uses clear language requiring each project to satisfy the cost-benefit analysis, which is described in some detail…
If the Commission had subjected the projects to bona fide cost benefit analyses it is inconceivable that either would pass. That is because their extremely high offer prices are three to four times higher than those being offered by onshore wind or large-scale solar projects. In fact, a Commission staff witness presented testimony pointed out this cost disparity.
It is also noteworthy that the Commission staff did not recommend approval of either project. Instead, it stated that ‘The issue of cost should be of paramount consideration in the determination the Commission must make in this proceeding.’”
The now twice-per-month magazine for commentary, opinion and debate on utility regulation and policy, Public Utilities Fortnightly. In PUF, impact the debate frequently.
Steve Mitnick, Editor-in-Chief, Public Utilities Fortnightly
E-mail me: mitnick@fortnightly.com