Rates set to jump for Pacific Power, PGE customers in January.
Published: Friday, December 17, 2010, 9:24 PM Updated: Friday, December 17, 2010, 9:24 PM
By Ted Sickinger, The Oregonian Come New Year’s, better strip the lights off the house and the Christmas tree ASAP.
Customers of Pacific Power will see their electric rates spike 14.5 percent in January. The increase comes in a one-two punch: an 8.4 percent general rate increase state utility regulators approved Friday, and a 6.1 percent increase for increased power costs they are expected to approve Dec. 28. Both take effect Jan. 1.
Meanwhile, customers of the state’s largest electric utility, Portland General Electric Co., will see a lesser, but still significant, rate increase of about 3.9 percent. A few mandatory cost adjustments in the works will bump that overall increase to 4.2 percent, effective Jan. 1.
The biggest factor driving the increases: renewable power.
Oregon’s public policy choices during the past few years are coming home to roost in rates, a trend that will continue and likely be exacerbated in coming years by environmental edicts dealing with global warming and haze reduction.
For the time being, state mandates requiring utilities to meet 25 percent of customer demand with renewable power by 2025 — with interim targets before then — are jump-starting utility investments in wind farms, hydroelectric projects and the transmission lines to access remote, windy areas. Those projects have a long life span and low fuel costs. But the upfront capital costs are steep, and the resource is intermittent.
The largest part of Pacific Power’s general rate case was driven by a new transmission line and the two new Wyoming wind farms it connects to the utility’s customers. The company also installed pollution controls at a coal plant in Wyoming and needs to replace cheap electricity it has been buying under long-term contracts that are expiring.
“It’s a big increase,” said Pat Egan, a spokesman for Pacific Power. “We know this is not a great time for this.”
But in the end, he said, the utility has little choice. It has been told to invest in renewables.
Full story here
h/t to WUWT reader Steve in Oregon
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It’s easy to see why Pacific Power put wind farms in Wyoming and then built transmission lines to it:
I wonder how Portland General will meet their mission if they get too much reliance on wind, and not enough backup? The “reasonable price” directive seems to be out the window already:
According to their current figures filed with the SEC, hydro and wind combined makes up 29%. That sure is a lot of power uncertainty to connect to the vagaries of wind and weather.
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Oh. You mean the wind farms along the Columbia Gorge, outside of LaGrande, and near Milten-Freewater? The ones that are standing still from ice cycles or the few that are still turning?
Wyoming should build a nuclear plant and sell that power to Oregon.
Now think about the line losses in shipping power all the way across Idaho and all the way across Eastern Oregon to get the the population centers of Oregon. Eastern Oregon is basically desert, a lot like Nevada, and few people live there. It doesn’t make sense that they would transmit wind power from Wyoming across that great distance. That seems like an insane distance. Casper to Portland is around 1000 miles, or about 1/3 the distance across the US. The path is also very rugged with a lot of miles lost in going up and down hillsides.
This seems like folly piled on top of stupidity.
“Under my plan electricity prices will necessarily skyrocket” . So sayeth Obama. How’s that for keeping promises?
“But in the end, he said, the utility has little choice. It has been told to invest in renewables.”
The $24,000 question. By who? We have the same problem here in Canada. Our current provincial government is mandating “green” energy over all else, at 25 cents per kwh paid to private contractors over multi-decade contracts, signed by the same government. Current power, derived from nuclear, coal/gas and hydroelectric is priced at 4.5-9 cents per kwh (smart meter gouging). My honda generator can produce power cheaper and more efficiently than the green alternatives.
This story doesn’t add up. The wind power is a pathetically small 1.8% of the total retail load; and that’s capacity, not output. Chances are only about 0.4% of the retail load will be delivered with the current wind installations. Unless hydro counts as renewable, they’ll need more than a massive price hike to make that 25% by 2025, they’ll need a miracle.
I notice that hydroelectric is often included under the renewables banner. But any half-decent hydroelectric power installation can operate 24/7/365. I suspect that the enviros like to include hydroelectric operation figures in their totals for unreliable wind and solar, to make it appear that the flashy wind and solar work just fine.
Under ‘Operational Excellence’ the percentages for Wind are 0.1% and 1.0% which somehow adds up to 1.8%. So much for operational excellence.
Does the phrase “scam based fraud” ring a bell because that’s exactly what it is.
We are in this state of transition trying to find ways to take advantage of the sun’s energy. That seems to make sense, but to me we seem to be struggling with how to make it work without busting the economy. Personally I’ve hoped that we would use the sun’s energy to make hydrogen for fuel cell powered electric cars. For example, rather than build new power lines from new windmill farms, produce hydrogen on the spot, then if the wind does not blow the only harm is that less hydrogen is being produced for the moment; a backup generation station does not need to come on line. There is the issue that there is no infrastructure for hydrogen delivery, but if one existed, it could help solve several problems. A question is whether going to a hydrogen economy is costlier and more dangerous, or efficacious. Another is whether investors see a market in it.
Fine, what are we going to do with all of our people on fixed incomes? in the dead of winter?
I thought it was the big liberal cause a few years ago.
We were hearing about people that were having to eat cat food,
could not afford heat or air conditioning.
I guess we’ll just have to let them all die off, for the sake of saving the planet………
Well, if I recall correctly I believe the environmental nuts have caused the shutdown of several dams and/or prevented the construction of new ones because of the fishies – any reliable form of energy generation is simply unacceptable for some reason.
Ugh, I feel like moving to Alaska.
I am beginning to wish more and more everyday that I had found that place with the little spring branch on it that I could have put a small alternator on to get off the grid. Me thinks that our government is getting the gold and we are getting the shaft. If things continue and the mandates are met the climate changing will not play as large a part as lack of resources (with the banning of the most abundant) in the death of many people. Thank the good Lord we can change governments by election here, I do think that the change is going to continue. 2 more elections in the next 4 years should about make the changes we need.
Bill Derryberry
An Hydro doesn’t add up either. Wind and hydro not adding up? That’s about right…..
Energy cannot renew itself — But the ridiculousness of man is renewed with every windmill built.
Does anybody hear any compassionate complainants about the birds slaughtered by windmills? Have you ever walked the ground under the giant windmills? Most of the bird kills come from raptors and other large birds, as by the time they hear the blades it’s too late. The bigger birds cannot maneuver quick enough to avoid the blades whack. Out in the Altimont Pass area they drive about once a day collecting dead birds so they remain hidden. Got time, drive the roads there and see for yourself. Seems like our eco-nuts are bird’s fair weather friends — Imagine if you will, if nuclear power plant hot water discharge killed this much sea-life what the outcry and selective outrage would be. Google it up, they know, just they choose to remain silent.
It’s truly a travesty what is happening to the great soaring birds.
Crosspatch – Exactly
Paul Coggin – I know that in Idaho , some activist groups bought enough stock in Idaho Power that they were able to force the directors to commit to a percentage of renewables ( I forget the amount ) a couple of years ago . I believe that has changed , though . IIRC , the issue came up at the annual shareholders meeting and the activists had enough votes to get it passed .
So, what happens if the 25% target isn’t reached by 2025 ?
There are many wind farms now near Ellensburg, WA (north of the Columbia Gorge). Currently that power is sent to the west side of the Cascades. Power went out locally a year or so ago and there wasn’t a line from the towers we could see to the local power company. The work-around was to divert some wind-power eastward toward a hydro facility and then send it back on one of their lines. It is more costly than the power from the dams.
Now about this:
For the time being, state mandates requiring utilities to meet 25 percent of customer demand with renewable power by 2025 — with interim targets before then — are jump-starting utility investments in wind farms, hydroelectric projects and the transmission lines to access remote, windy areas.
I have not read Oregon’s law but otherwise have heard that “Hydro” wasn’t going to qualify as new renewable power.
PNW wind farm map: (date?)
http://www.fwee.org/FI/windmap.jpg
crosspatch – it gets even better than that. The farther from the transmission site, the more induced current from the earth’s magnetic field fluctuations. There’s a reason that the old Ballard power plant is still running near Vancouver British Columbia, a large portion of the BC power grid is still provided by hydro power, and they need to adjust the waveforms of the incoming signal(s) to keep the supply “clean” and in phase. There are concerns and licencing issues around putting in a new plant, so the old (and frequently upgraded) facility has to stay in place to keep the lights on.
If Portland wants to use a lot of “renewable” energy from far away, they’ll need to have a couple of plants close in to the city to clean up their power too. Do you think they’d rather have coal or natural gas to do this job?
“Fine, what are we going to do with all of our people on fixed incomes? in the dead of winter?”
Why, you put them on a government program, of course! Politicians create a problem and then come to the rescue, like they always do. So now you tax the “rich” consumers of power and use that to subsidize the poor consumers. Tada! They have not only managed to mitigate that problem they created, but they have managed to “redistribute wealth” but in a way that leaves the rich poorer but doesn’t leave the poor any better off than they were before! After paying for the inflated energy cost with the subsidy, the poor don’t have any more money than they had before when the power costs were lower and they didn’t need the subsidy but the politicians have managed to extract a pound of flesh from their favorite strawman … “the rich”.
Hydro is very reliable and has a very different predictability from wind, they should not be put together.
What we need is tidal power, very reliable and predictable.
Nuclear and coal can’t ramp up/down fast enough to back up solar and wind. Hydro and gas turbine are OK.
I’m not certain but I think what they’re going to do to back up the wind farms when the wind doesn’t blow is to install backup gas turbines fueled by natural gas. These are used for periods of high demand in NYC and are called ‘peaker plants’. The turbines can develop upwards of 50,000 hp. and can be brought on line quickly. However they are expensive and certainly won’t last as long as the steam turbines in a coal or nuclear plant. The consumer in this ‘renewables’ scam gets to pay for two redundant electrical sources instead of one. Moreover, despite the rate increases taxpayers probably paid subsidies to get this up and running in the first place. Oh how the DiCaprio’s of the world screw the little people.
“Nuclear and coal can’t ramp up/down fast enough to back up solar and wind. Hydro and gas turbine are OK.”
I wasn’t suggesting that nuclear be used to back up wind/solar/hydro. I was suggesting it be used *instead* of wind/hydro/solar. And recycle the spent fuel.
“The “reasonable price” directive seems to be out the window already”. Just like in the UK, where reducing fuel poverty has gone out of the window so that installed renewable capacity targets can be met.
Pacific Power is “operated” by PacificCorp, which is a subsidiary of MidAmerican Energy Holding Co.
MEHC is a Berkshire Hathaway company. That’s Warren Buffett.
I suggest that an ugly, public boycott of all his companies, such as GEICO Insurance, would be appropriate.
The Global Warming Hoax has always been about ripping people off. It is founded on junk science and the boundless greed of kleptocrats and other grubby thieves. The time has come to put an end to this despicable charade.