Mr. E. Bennie Daigle Jr.

GLG News by Mr. E. Bennie Daigle Jr., Consultant

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New Energy Bill is Rhetoric

August 31, 2007

Analysis of:U.S. House Energy Bill: Rhetoric Over Reality | www.energytribune.com

As mentioned in the article by Robert Bruce, "Perhaps the most significant – and most controversial – element of the House bill is its requirement that by 2020, publicly traded power companies must get 15 percent of all their electricity from renewable sources like wind and solar." Oh how true, what were they thinking?  Let us do a little math, let us suppose that we have a utility that generates 10,000 MWs.  That would mean that they would have renewable sources in the the amount 1,500 MWs.  Who is going to pay?   If the utilities build it or buy it, they have to put it in the rate base and the customers will pay.  The average customer now complains that his electric bill is too high.  Well from now until 2020 it is going up more.  It will go up each time a renewable MW is used by the utility.  Some utilities are requesting "Green Power Rates" - Rates that pay for the extra cost associated with renewable sources.  We need to let all the Congressional Leaders join and pay first.

DOE and FERC use of Electric Corridors

August 8, 2007

Analysis of:A Jolt of Support | www.forbes.com

The DOE under the Energy Policy Act of 2005 (EPAct) must identify electric corridors in areas where transmission capacity constraints or congestion exist.  The DOE has done this in the Mid-Atlantic and Southwest areas.  This should help the utilities in those areas obtain siting for transmission lines.  It also will give the FERC a better footing for advancing approval of certain lines.  I think that more important than the DOE corridor designation is the new backstop siting provisions in  EPAct.  This will allow FERC to step in approve siting ithe states are unable or unwilling to act in a timely manner.  This backstop siting will cause some problems for the states because they will not like the FERC taking over what they perceive as their authority.  The Utilities will have to play both ends to get the siting of lines approved. In the overall scheme, the intended goal of the DOE designation of electric corridors will help but it will not be the cure all.

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