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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patvann, only parts of some of those “13 states” area operated by PJM; breaking it down it is more like PJM has a partial presence in 5 of those states with full to nearly full presence in 8 the reaming ones.
See map here showing PJM area only: http://pjm.com/about-pjm/how-we-operate/territory-served.aspx
Aside from PJM, the MISO (Midwest Independent System Operator) operates in those states where PJM has only partial presence.
See map here showing MISO and PJM areas differentially: http://www.miso-pjm.com/
A little more complete map showing the interconnections between ‘systems’ like PJM, MISO, SPP up in that part of the country: http://oasis.midwestiso.org/oasis/NODE/MISO
Historically, PJM once stood for Pennsylvania, Jersey, Maryland, but has since expanded beyond those borders.
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BigBadBear says:
May 23, 2012 at 5:25 am
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…
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Of course there is. Unfortunately the desired end state is a utopian fantasy that generally falls under the heading of “post-national civilization” (aka Global Governance). Obama and others have not been shy about this goal.
PS: to BigBadBear says:
May 23, 2012 at 5:25 am
Read this published in 2008 from the Army War College:
From the New Middle Ages to a New Dark Age: The Decline of the State and U.S. Strategy
SUMMARY
Security and stability in the 21st century have little to do with traditional power politics, military conflict between states, and issues of grand strategy. Instead, they revolve around governance, public safety, inequality, urbanization, violent nonstate actors, and the disruptive consequences of globalization. This monograph seeks to explore the implications of these issues for the future U.S. role in the world, as well as for its military posture and strategy.
Underlying the change from traditional geopolitics to security as a governance issue is the long-term decline of the state. Despite state resilience, this trend could prove unstoppable. If so, it will be essential to replace dominant state-centric perceptions and assessments (what the author terms ?stateocentrism?) with alternative judgments acknowledging the reduced role and diminished effectiveness of states. This alternative assessment has been articulated most effectively in the notion of the New Middle Ages in which the state is only one of many actors, and the forces of disorder loom large. The concept of the New Middle Ages is discussed in Section II, which suggests that global politics are now characterized by fragmented political authority, overlapping jurisdictions, no-go zones, identity politics, and contested property rights.
Failure to manage the forces of global disorder, however, could lead to something even more forbidding?a New Dark Age. Accordingly, Section III identifies and elucidates key developments that are not only feeding into the long-term decline of the state but seem likely to create a major crisis of governance that could tip into the chaos of a New Dark Age. Particular attention is given to the inability of states to meet the needs of their citizens, the persistence of alternative loyalties, the rise of transnational actors, urbanization and the emergence of alternatively governed spaces, and porous borders. These factors are likely to interact in ways that could lead to an abrupt, nonlinear shift from the New Middle Ages to the New Dark Age. This will be characterized by the spread of disorder from the zone of weak states and feral cities in the developing world to the countries of the developed world. When one adds the strains coming from global warming and environmental degradation, the diminution of cheaply available natural resources, and the proliferation of weapons of mass destruction, the challenges will be formidable and perhaps overwhelming.
http://www.strategicstudiesinstitute.army.mil/pubs/display.cfm?PubID=867
So at what point does Obama initiate 5 year plans and collectivization and institutes for Proletariat Science?
I believe de-industriliaztion of the US has been going on for decades.
It is notable that the things Americans complain about here often sound familiar to us in the UK. We too have a leader who seems to have a suicidal obsession with ‘green energy’ in the face of a looming energy crisis – to be averted by banning filament light bulbs apparently. The difference is that our PM claims to be a ‘Conservative’. Not long ago the PM was banging on about how legalizing ‘gay marriage’ was a top priority for him, despite the fact that – as the press pointed out – there was no particular public clamour for it and there are perhaps more pressing priorities for an EU leader at the moment. Then I hear Obama say the same thing. What’s going on? Have they been reading the same book? ‘Governance for Dummies’ perhaps?
This report that NERC put out about FERC’s efficiency rules creating reliability problems may be the first remotely useful thing they’ve ever done.
I’m an electric utility engineer. The causes of reliability problems are not addressed in any way by NERC audits. The primary cause is the regulated private monopoly structure. It incentivizes for-profit utilities to let their system fail. Maintenance is a 100% cost-recoverable expense. Replacing failed equipment is a capital project that you can use to justify rate increases and take a profit against.
All NERC audits do is check to see if you’re aware that your equipment is failing. They don’t force you to do anything useful with that information.
Sean says:
May 22, 2012 at 9:04 pm (Edit)
“2016″ – The Must See Movie Coming This Summer
————————————————–
Sorry man , but I get a broken link when I try the video.
These guys, and we have all met a lot of them, think that they have a better grip than the professionals . They are able to put across a message that they are competent and better than the incumbents. To these guys, and the very silly people who vote for them, what we do seems easy and simple. That’s our fault but it is still a fact that they will break many things that have worked well for a long time. Things that took wit, will and treasure to build which have served society well and largely seamlessly. Water, sewage, public health, electricity, transport,food. All the things we need for survival and a reasonable standard of living.
That is the tragedy ,competence and diligence have been devalued by their own success. This ruling talking class convinces weak minds that we can relax more, earn more and borrow more to live the dream. It is done by taxing and charging more at the richer end of society, usually in modest numbers and giving more to the poorer end where the votes are for sale . The money always runs out but the perpetrators are long gone by then.
You cannot punish success and reward failure no matter how “fair” you think that makes you.
Insidious. And not the sort of tactic that one conjures up on the fly.
just following comments…
This is some of the promised “fundamental change” and fits with the promise of “energy costs will necessarily sky-rocket.” No one should be surprised by these stories.
These promises were delivered before the last Presidential election. Still a majority of Americans voted FOR this radical agenda.
I wish the impending brownouts affect only blue states and DC.
My take on this is, the Obama admin want’s the NERC to stop with the reliability reports until after the elections.
BigBadBear says:
May 23, 2012 at 5:25 am
…..
I can’t help but feel there is more to this whole thing, over and above a carbon gravy train, than meets the eye…
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Why isn’t greed a big enough motive? The people involved in the gravy train stand to make mucho bucks at the expense of everyone else, so the simplest explanation is the best for most people involved.
However, as Curious George says, some of the people involved are obviously trying to de-industrialize at the same time due to their beliefs. Its important though to keep motives straight. For most people involved, the greed factor is what carries them on to being green. Until people stand up to this corporate hijacking and use their pocket-books to go after “green corporations” filling their snouts at the taxpayer troughs, what is to stop them?
Warren Buffet, GE, and others come to mind first. But there are many others and the gravy train goes a long way. These people are just greedy. Nothing less, nothing more. If you start boycotting and otherwise cause harm to their business where you can, you will make a difference and the companies will either change and become competitive again, or they will die out like most people involved in ponzi schemes when the money runs out.
Its all about the dollars and cents for the companies, so make them pay where you can and educate yourself on where to hurt these companies. Tell everyone the truth and more then anything list the bad things about these companies. If you follow the money trail it leads straight to Government hand-outs and the cronies themselves.
That, and yea voting Mr. “death to coal” out of office. Being president is where you stop being a brain-dead activist and start thinking about the consequences of your actions. And taking responsibility for ones actions.
Sean says (May 22, 2012 at 9:04 pm): ‘“2016″ – The Must See Movie Coming This Summer’
Thanks, Sean, I wasn’t aware of the film. Link didn’t work, but I found it here:
I don’t know if Obama is a rabid “anti-colonialist” or not, but I must say his actions are certainly consistent with such a world view.
Tom J says (May 22, 2012 at 6:48 pm): “Rest assured, Barry’s been promoted waaaay, waaaaay, waaaaaaaay past his level of incompetence.”
I submit that the problem is actually in the US electorate. Any country that would vote “Carter 2.0” into office is currently living way above its level of incompetence. If we keep voting like we have been, our living standards will decline–deservedly–to the third world level we seem to prize so highly.
Buy a generator, it’s what they do in the third world.
It might have something to do with this:
Obama’s war on coal hits your electric bill
http://www.foxnews.com/opinion/2012/05/22/obamas-war-on-coal-hits-your-electric-bill/print#ixzz1vixjk6Jl
Last week the U.S. Energy Information Administration reported a shocking drop in power sector coal consumption in the first quarter of 2012. Coal-fired power plants are now generating just 36 percent of U.S. electricity, versus 44.6 percent just one year ago.
As long as natural gas stays cheaper we are ok but we all may be sitting in the dark if too many coal plants drop off at once this summer IF there are no natural gas fired replacements off setting the furloughs of coal plants still in the pipeline. btw- any GDP activity due to this regulatory driven change over on power plant replacement is essentially a faux economics version of the Broken Windows Fallacy. Retiring perfectly good electrical generating plants is NOT investing in the future but mal-investment of limited capital which diverts from more productive investments and as a consequence DECREASES job creation.
I foresee major productivity increases in the electric utility generation sector… Natural gas driven combustion turbines require LESS people to operate them than a coal fired steam driven turbine plant, so this is a (union) jobs killer.
One can only hope there are enough orders from foreign coal buyers to off set this massive drop in coal consumption because a lot of (union) miners are going to lose their jobs otherwise. What is the UMW saying about this? Somehow I don’t see an endorsement from them for Obama.
There’s more to the implications than just this. After the August 2003 NE North American grid collapse, the US and Canada agreed to a series of measures to ensure grid stability on both sides of the border, in particular those provinces and states that surround the Great Lakes. It should be remembered that this event was caused by the overload and collapse of a number of First Energy transmission lines in Ohio.
For the US, NERC was integral to providing data to both countries on US performance with respect to grid stability.
So, among many other implicaitons, Obama is also violation of an international agreement. But then after all the shabby treatment from this administration, i.e, Keystone, Canadians really don’t expect anything better.
What y’all have forgotten is they just want us to have to get used to using power when its available. When it’s not, why that just saves wear and tear on the environment.
My fear is that enough damage has already been done, or delayed consequences are already baked into the cake, that even if a competent opponent wins the next election he will be inheriting a booby trapped economy.
The resulting consequences will be blamed on the replacement not the morons that instituted the process of kicking the props out from under the economy and the current administration, their friends and the media will blame the failure on the replacement administration. Given their skill at propaganda they likely could convince enough useful idiots to vote the same agenda back into place in 4 years and in the process destroy the credibility of those who understand the problem and are trying to fix it for a generation.
The key to preventing that outcome is to break the monopoly of silence in the mainstream media and get the true state of affairs and who is to blame out in public view so it cannot be hidden in political spin to a generally unsophisticated and poorly educated electorate who have been conditioned to view media spin uncritically. Not only vote with your wallet regarding all the folks skimming the hand outs but we need to slap the media up side the head some how to get them back to proper investigative reporting. Where, who is the 21’st century’s Edward R. Murrow who will insist on good journalism?
Larry
Obama is just carrying out the spirit of Agenda 21 from the Rio Conference which was headed by Maurice Strong. “We may get to the point where the only way of saving the world will be for industrial civilization to collapse…isn’t it our job to bring that about” Maurice Strong. Obama is a believer.