Stand Up for Energy Independence
Jun 16th, 2008 by DavidAnderson
This maybe our last chance. Negotiations are underway with DP&L. What happens this week will likely shape the Bluewater Wind deal. Contact your Senator and tell him/her how you feel about the Bluewater Wind Power deal. Unless of course if you oppose us having 100% American made, local power and price stability then you have my encouragement to watch tv instead.
I think this issue has more cross party appeal than any energy proposal I’ve ever seen. It just makes sense. I mean, David, you’re linking to Kavips! For conservatives, just look at the cost savings (which are propbaly even more substantial than stated as the rest of the world’s middle class puts more pressure on natural resources in the future and raises the prices of coal and oil) and think national security. For the libs, there’s environmental and health savings. And Delaware can actually be first at something! BUT, DP&L gets cut out of 20% of energy production. That’s what this is all about. That’s why they (Connectiv) sued to build the wind farm. You can only make a little money as the distributer. The cash is in production of energy (and speculation)…….
I must have fallen asleep and awoke in Red China. When did it ever become acceptable for the government to decide who a private business should use as a supplier, for what price, and for how long?
That is fundamental, and yet somehow completely lost in this debate.
It appears that Christian Hudson is so far right that even Ganges Kahn was a communist by his definition. Get real Christian, just because you inherited wealth does not give you the right, in the USA, to walk all over people.
When a company fails to ethically play by the rules the government needs to step in for the good of the majority and to protect the economy.
David- grest post this really is a bi-partisan issue in Delaware and something that we all agree on. It is good to see it. I am glad this is coming to fruition.
When did it ever become acceptable for the government to decide who a private business should use as a supplier, for what price, and for how long?
Is this all they got? Delmarva Power is NOT a private business. They are a government regulated monopoly. Now, please, move to China.
Mer,
Thank you for taking this from a logical discussion and turning it into a personal attack. My hat goes off to you, as that takes skill and courage especially when you’re not using your full name.
“It appears that Christian Hudson is so far right that even Ganges Kahn was a communist by his definition. Get real Christian, just because you inherited wealth does not give you the right, in the USA, to walk all over people.
When a company fails to ethically play by the rules the government needs to step in for the good of the majority and to protect the economy.,”
Firstly, it’s Ghengis Khan. Secondly, he was not a communist he was a conqueror/dictator/emporer. Thirdly, I have never inherrited anything. Not wealth, not debt. Nothing. I do not walk all over anyone. If anything you’re walking all over me by turning this into a personal attack just because my views are different than yours.
anon,
“Is this all they got? Delmarva Power is NOT a private business. They are a government regulated monopoly. Now, please, move to China.
”
I’m not sure who you mean by “they” I represent nobody but myself. Delmarva Power is a private business, and this creates a huge precedent if the government gets the ability to mandate who a business can buy from and at what price.
I don’t understand your suggestion that I move to China. Are you saying that they are more free than the US is or something? I’m just trying to figure out why China would be a good move for me, considering my comments are about having more freedoms, less government intrusion, and more faith in our individual citizens.
Christian,
Delmarva Power is a “regulated utility.” That is, they get to make a set profit of 4% guaranteed by your payment every month, based on contracts approved by the Public Service Commission. Come hell or high water, they still get their 4%. For that reason, Delmarva Power is not a mere beleaguered “private company.” Because of the structure and history of the transmission system in Delaware, Delmarva Power gets to operate as a monopoly within its checkerboarded service areas throughout the state.
Delmarva Power can either operate under Delaware law, or get out of the state. That’s their choice. For example, in Virginia, Delmarva’s parent, Pepco, sold off Delmarva Power’s business in 2006. The law which Delaware approved 2 years ago (HB6) (and which DPL did not oppose at the time), said Delaware could and would compel DPL to enter into a contract for in-state, clean, renewable, price-stable new energy if certain criteria were met.
I hope this information is helpful. Patricia Gearity, Citizens for Clean Power, Lewes, Delaware
Patricia,
Yes I understand the Public Service Comission’s role in regulating power, water, and sewer. (Actually on a side note, if you could explain the difference on electricity and water regulations per the PSC as it pertains to profit margins I’d be grateful. I do not know about electricity regulations; however, on sewer the PSC does not allow a profit margin for treatment or transmission etc. They only allow an 8% profit on the cost of installing the infrastructure.)
That being said, 4% either one is not a “price gouging” type of profit margin. Please note that I say this as a Delmarva Power customer… and one that was definitely not happy about 59% increase, and another rumored large increase on the way.
They are however a private company, whether beleagured or not, and as such the government should have no right to stipulate who they can purchase goods and services from.
If that does happen, it will have dire consequences for private business of all kinds as it will set an immediate precedent that can be used by cumbersome and heavy handed bureacrats desiring to push their own agenda on the rest of us. It does not take that much imagination or creativity to be able to see the implications, as the law of unintended consequences quickly rears its ugly head with such a precedent.
Christian,
Delmarva Power is a transmission company. They transmit electricity from the nuclear power plant in Salem NJ, natural gas power from their sister company (under Pepco) Conectiv, and coal-powered energy generated by NRG, among others. They shouldn’t have any concerns whether the energy comes from wind or coal or seagulls flapping in the breeze. Since they are getting a reasonable guaranteed profit, this should be a no-harm, no-foul result for them…. except…. Daddy Pepco and Big Sister Conectiv could lose some profits. That’s what it’s about, of course. Keeping out new competition which will bring price stability and long-term economic benefits to Delaware, contrasted against more power and profit to Pepco Holdings and the rest of the fossil fuel monopoly on the East Coast. Take a look at HB6 and the actual proposed contract, and then tell me Delmarva’s interests weren’t totally protected from the beginning to the end.
Patricia,
As I have stated before, my opposition is primarily based on the precedent I mentioned above about allowing the government to mandate that a private business purchase from a specific private supplier and the inherrent dangers therein. Because of that, it’s immaterial what the profit margin may be, or who believes or disbelieves that it is reasonable.
I’m also opposed to it based on the fact that DP&L is the only purchaser of the power, and it is not being sold directly to the grid as is the industry standard.
“Delmarva Power is a private business”
It is a monopoly pure and simple.
Demarva is a regulated utility that would be obliged to buy power from a source that is to be granted monopoly power by legislative fiat.
They could succumb to a well-crafted PR campaign that reeks of trendiness. If things go sour, they can pass the cost onto the rate-payers. This might be the smart thing to do in the short run.
Smart in the short run is often the favored course of politicians whose survival is enhanced by the short memory span of the electorate.
I respectfully disagree. It is the smart course in the long run. Have you looked at the federal energy law or a synopsis of it? It requires us to get a substantial portion of our power from renewable sources soon. There will be a lot of competition in a few years for these sources which will cause higher rates. Wouldn’t it make sense to lock in a good rate now and for 25 years?
It is also not unprecedented. Delmarva Power used to be required to have locally owned power production sources before deregulation. These rules are less onerous than before deregulation. We grant DP&L a monopoly and ensure that it turns a profit on our operations. Is it wrong to make a condition of that monopoly that we have local sources of power and a measure of price stability? Please explain?
Please explain?
Bluewater should be allowed to compete as a supplier without a lot of obstacles to their operation. It they are economically viable, they will sell their energy at a profit. They are looking for a guaranteed price.
We need more nuclear plants as soon as they can be built.
Bluewater is a trendy boondoggle.
Far from a trendy boondoggle is BWW, Artdo.
Stable prices for 25 years, DE based meaning jobs now and in the future, no pollution of any kind, no nuclear waste to store/dispose of, on line well ahead of any nuclear unit, ….
Hardly a trendy boondoggle indeed!
I think that it is a false debate. Nuclear or wind power is not the choice. We need both. Bring on line all of the reactors at Salem. Build BWW. Do it all. It is a national security issue. We can no longer ditter.
On the economic side, what businessman would turn down 25 years of price stability with the trends all pointing to higher prices at least most of the next 25 years? The same idiots who sold off all of our local power generation for a short term buck. Who was right? The people who bought or the ones who sold? I can understand being fooled the first time, but what type of morons would we be to listen to them again? I am sorry, I should be nicer. Would people who score low on IQ tests forgive me for comparing you to DP&L executives and the politicians they purchased.