Say Anything Blog

Yikes...

A report by the North American Electric Reliability Council warns demand for electricity is increasing three times as fast as resources are being added in the U.S., a trend that could shake electric-system reliability in the coming decade.

In its first report since the organization’s duties were expanded by Congress, the grid organization, known as NERC, said U.S. demand will increase by about 20% from 2006 to 2015, outstripping investment in new electrical supply. The pace of growth in Canada, while slower, also is cause for concern.

NERC counts 67,000 megawatts of resources in the works in the U.S. versus 141,000 megawatts of expected demand growth by 2015, leaving a shortfall of about 81,000 megawatts, an amount equivalent to 160 large power plants. One megawatt can power 500 to 1,000 homes.

Increasingly, it is left to a deregulated market to determine whether and when new resources get built. Available resources are expected to fall below safe levels in many parts of the U.S. and Canada, such as New England, the Rocky Mountain region and Texas, in the next two to three years.

As the system drifts closer to its physical limits, it is even more important that energy regulators and utilities promote conservation and use of the most energy-efficient equipment, said Rick Sergel, chief executive of the grid reliability organization. He added conservation programs will need to at least double their reach and effectiveness to help close the gap between supply and demand.

I think it’s interesting that the reporter who wrote this article called the energy industry “deregulated.” Given this article, I hardly think that’s true:

DALLAS - A building boom that would add scores of new coal-fired power plants to the nation’s power grid is creating a new dilemma for politicians, environmentalists and utility companies across the United States.

Should power companies be permitted to build new plants that pollute more but are reliable and less expensive? Or should regulators push utilities toward cleaner burning coal plants, even if it means they will cost more and are based on newer, yet still unproven, technology?

How those questions are answered will have huge implications over the next few decades. It could determine how Americans light, heat and cool their homes and business, the rate of return on utility investments and the potential environmental impact of the new plants.

The energy industry may not be officially regulated, but it is certainly burdened by meddling politicians and environmental activists.

Even as demand for electricity soars and power companies struggle to keep up with it politicians are still talking about saddling the energy industry with burdensome regulations that would require them to build more expensive plants that may not be as reliable or efficient as the cheaper power plants.  What does this mean for citizens?  It means that we could soon find ourselves, thanks to meddling politicians, paying for exorbitantly expensive electricity just as we already pay for exorbitantly expensive gasoline.

Gas prices are high, and fluctuate wildly, because politicians here in America refuse to allow the oil industry to make the sort of investment into production of oil that is necessary to keep fuel prices cheaper and more stable.  Now they’re looking at doing the same thing for power plants.