Guest post by Alec Rawls
NERC (the North American Electric Reliability Corporation) must have thought it was taking a step up when a 2005 law made the non-profit group an official advisor to Congress, but that law also brought them under the oversight of FERC (the Federal Energy Regulatory Commission) which just spent months of rummaging through every desk looking for rule violations they could use to embroil NERC in legal difficulties.
It seems that the President’s drive to shut down the coal-fired half of the grid could pose some risk to grid reliability—who’d a thunk it?—so Obama is trying to shoot the messenger. When no violations were found, FERC decided to “audit” NERC’s mission itself, resulting in a finding that this business of “periodic reliability assessments” is all a bit much and “should be revisited.”
From the editors of The Wall Street Journal:
This highly respected nonprofit has monitored the power system since the 1960s and establishes best practices to keep the lights on. … NERC’s position is that the EPA goal of mothballing many or most coal-fired power plants could endanger the security of the electric-power grid, with possible blackouts and much higher energy costs. In a follow-up report last year it found that “Environmental regulations are shown to be the number one risk to reliability over the next one to five years.”
In violation of FERC rules, Chairman Jon Wellinghoff ordered the NERC investigation on his own authority, and the investigation itself was overtly political:
[T]his probe exceeded normal auditing standards and was a free-floating investigation into NERC’s “economy and efficiency,” whatever that means. It didn’t find any rule-breaking.
Instead, the auditors question NERC’s focus and statutory responsibilities, concluding that it “may have exceeded the functions” Congress intended for a reliability organization. Never mind that NERC has been doing the same job for decades and its integrity hasn’t been questioned. The feds also complain about NERC’s “periodic reliability assessments,” otherwise considered the gold standard. They say this role “should be revisited.”
In other words, the energy G-men think NERC should help protect reliability without studying the actual threats to reliability.
The perils of shutting down the nation’s largest electricity source can’t be news to the Obama people. They just don’t want the public to get the message.
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Scary stuff. Somehow you let a green-left globalist into the Whitehouse. We did the same with our Lodge. Can we both learn from the mistake? I hope so.
It is indeed scary. Too many people are asleep on this issue. However, I am inclined to think they’ll wake up in 2015 when they open their utility bills.
Those with their eyes open can look at the futures market to see what’s expected to happen in 2015.
“This year, the auction procured 164,561 megawatts of capacity at $136 per megawatt for 2015-2016 in the area that includes Chicago — a megawatt can power 800 to 1,000 homes. That compares to $16 per megawatt consumers will be paying as of June 1 this year…”
http://articles.chicagotribune.com/2012-05-18/business/chi-electric-rates-going-up-in-2015-20120518_1_electric-rates-electric-grid-capacity-payments
The poor sods who can’t afford to heat their homes will be crying out for some more global warming.
WOW, this is a big one, but the news medai looks the other way!!!!
Now it appears to be, “Hide the UN-Reliability!!!”
James Sexton says:
May 22, 2012 at 8:55 pm
“I’d like to take a moment to reflect on a bunch of pinheads who frequent here. Every time someone mentions politics they like to jump and harp that this is about science and that politics shouldn’t be brought up. Well, we see how vacant that was. Thanks to all of them who contributed such a weak and garbled message to the public that we have to endure this nonsense. Dolts.”
James,
Amen. We have lots of folks preaching tolerance. Unfortunately, what you tolerate is what you get more of! Slipshod science, used to drive political agendas in the name of cleaning up the environment, was tolerated in the 70s and 80s. Look where we are now?!
An unvetted presidential candidate, espousing socialist dogma, rode a carefully cultured guilt reflex in the electorate to the White House. We were tolerant, to the very brink of breathtaking national stupidity and bankruptcy. Look where we are now?!
The November elections are a scant 6 months from now. Prepare to change this country for the better! Prepare like the very existence of our country depends on it.
MtK
I would say that nothing shocks me anymore- almost nothing.
This does not shock me.
This is the type of thing that one has come to expect.
How much further can this sort of action escalate before it is a “problem”?
if there isn’t a crisis then there is no need for change.
if allowed to continue I predict a call for nationalization of the energy sector because “free market has failed” “fat cats are taking to much” “profiteering” “the average man can no longer afford” “greedy corporations” pretty much insert any quote said about health care and insurance companies. History will repeat.
I heard it said once that an American president with no war to fight was the most dangerous thing that could happen to the United States.
I’m starting to get it.
Follow the Money says:
May 22, 2012 at 9:28 pm
“…”
___________________
Parts of part of us may want to agree with you.
Unthinkable realities require bold thought and action to insure paridigm shift.
Back up your words.
Examples of the failure of persons to accept the reality of their situation are legion.
Tell us…
s’il vous plait.
Ted says: May 22, 2012 at 7:58 pm
“…This is a war between a strong and recovering US…”
Guess again.
http://i45.tinypic.com/14mq2ro.png
The Holy Inquisition is alive and well in the USA just as it is here in Australia.
When we pronounce “truth”, you have not the right to question our decree.
Obama should write another book: Broken dreams of your children
My goodness, and I thought only the EUSSR was going down the drain.
Well, at least you can vote him out. In the EUSSR we can’t. How clever.
re:
jim says:
May 22, 2012 at 6:39 pm
Sort of makes one think Obama is taking the first steps towards DE-industrialization of our economy. Is this his great leap forward?
and Werner Brozek says:
May 22, 2012 at 7:05 pm
Is this an obomination?
Would this then be the desolation of the obama nation?
(cf abomination of the desolation)
As an Australian I was always impressed by your rights to bear arms, and your right to march on washington with arms to change the government if it became necessary. Your president usurped that right by giving him total control over all state militias with his fanangling. One more term of this man it will not just be your electricity prices, you will have the worst form of dictatorship.
The type that is making your life hell supposedly for your own good, for they believe that they are right and only they know the way forward, and everyone must comply. The novel 1984 is their way forward, it is an instruction manual. I can only say to all you Yanks who care, forget PC and stop pussy footing, the freedom of the world depends on you.
Could be a good time to begin investing in Horses and oil lamps chaps. The sort I used to see in American movies in the 50’s.
The “feds” who are entrusted with the security and safety of the people who pay them seem to be running a different agenda.
May the force be with you. Same here in the UK
So, fund an agency hoping they become reliant on government money then remove their funding. Seems like an easy way to kill an organization. — John M Reynolds
I’ve been telling a close friend (who said ‘lets give him (obama) a chance’) that blackout are coming his way. He doesn’t see it. But it does look like his Oh! Bummer! moment is coming…
If the US, EU, UK and Oz dick-potatorships (Sorry attempt at comedy in an otherwise depressingly over governed society) keep going this way the only answer for Joe public will be coal heating for their houses in winter.
Hats off to the poster repotting the forward PJM capacity markets. Here’s more:
Most of the coal plants meriting replacement will be done so with natural gas. New shale gas resource and last year’s soft winter have left the market with prices @ur momisugly$2.00/mcf. Bad news is that it takes about $5 gas to break even on recovery, hence Marcellus exploration has ground to a halt in the new plays. All of which means that the gas price, notorious for its price volatility will soon come roaring back with this new demand and normal weather.
With public policy (read permitting) favoring only gas and renewables we will find ourselves in an increasingly unstable generation supply condition.
Seasoned veterans understand the risk.
Of course, there is always hope (and change).
In reference to those comments regarding the potential outcome of certain political agenda’s, there are ultimately only 2 options for citizens. Personally I prefer the ballot box, but in deference to the ‘precautionary principle’ the wise man will follow the Scout motto: “Be Prepared”.
Mark and two Cats says:
May 22, 2012 at 9:13 pm
The president of the United States is an enemy of the United States.”
Just as the Prime Minister of Australia is an enemy of Australia.
Perhaps one of the finer living examples (an exemplification) of “The Peter Principle”
Our whole ‘merit-based’ federal gov’t employment system exemplifies Peter’s Corollary which states:
Somewhere on-premises I’ve got an ‘early-issue’ paperback circa ’70’s of The Peter Principle …
.
Ordinary people have a simple choice: join the lunatics in the asylum … join their madness … or fight against their lunacy.
People have to stop pretending that this madness will ever stop until they have either taken over every government and non-governmental institution or until the economy is bankrupt from their insanity … or father nature starts cooling down.
This is why Obama needs to be unelected. (one of several reasons)
To make the American people accept the “smart grid” that can regulate when and how much electricity you can use, there first has to be a shortage of electricity. Since we have enough coal and natural gas to run the grid for a couple of centuries, the shortage will have to be induced. I’m not a conspiracy theorist, but at some point you start to wonder…
I really don’t understand why so many of the world’s leading economic powers are collectively attempting to commit industrial suicide. Have they all forgotten that they are supposed to be putting the interests of their own countries before all others? Which involves looking at all side of a debate before coming up with econonically crippling policies, not just blindly accepting what a bunch of advocates are parroting and backing up with junk science.
I can’t help but feel there is more to this whole thing, over and above a carbon gravy train, than meets the eye…
The combination of Chicago thugocrats and Obama’s immature reactionary leadership is not a good one.