November 24, 2014 by Marita Noon
A couple of months ago, effective in November, National Grid, one of Massachusetts’ two dominant utilities, announced rate increases of a “whopping” 37% over last year. Other utilities in the region are expected to follow suit.
It’s dramatic headlines like these that make rooftop solar sound so attractive to people wanting to save money. In fact, embedded within the online version of the Boston Globe story: “Electric rates in Mass. set to spike this winter,” is a link to another article: “How to install solar power and save.” The solar story points out: “By now everyone knows that solar power can save homeowners big money on utility bills.” It claims that solar works even in New England’s dreary winters and cites Henry K. Vandermark, founder and president of Solar Wave Energy in Cambridge, as saying: “Even snow doesn’t matter if your panels have a steep angle. It just slides right off them.”
Solar is not the panacea it is promoted to be, though it is true that—after a substantial investment, heavy government subsidies (funded by all taxpayers), and generous net-metering programs (that raise costs for non-solar customers)—solar systems can save money on the typical homeowners’ monthly bill. (An unsubsidized system averages about $24,000.)
New England has seen one big power plant close within the past year—Salem Harbor Power Station in Salem, MA, went “dark” on June 1, in part due to tightening federal regulations. Another major closure will take place within weeks: Vermont Yankee nuclear plant.
A new, state-of-the-art natural gas plant on 18 acres of the 65-acre Salem site will replace the Salem Harbor plant (photo). The remaining 47 acres will see redevelopment, including renewable energy. But, that plan has received pushback from environmental groups that want it fully replaced with renewables. TheBoston Globe states: “A decade ago, replacing the aging plant with a far cleaner natural gas facility would have thrilled environmental and public health advocates.” The Conservation Law Foundation filed a lawsuit against the project’s approval, claiming the state “failed to adequately consider its own climate change law when state energy officials approved the Salem plant.” In February, the group settled the suit after it caused construction delays and reliability concerns.
Just days before the plant closed, a report from The Daily Climate addressed the controversy over usage of the Salem Harbor site: “Many activists pushed back, arguing for wind or solar generation or non-energy uses, such as a marine biotechnology research facility.” One activist group: HealthLink, “has marshaled opposition to running a gas line to the new plant,” and another: Grassroots Against Another Salem Plant (GAASP), “has pledged to use peaceful civil disobedience to block construction of the gas plant.”
The state of Massachusetts has offered three closed, or scheduled to be closed, coal-fueled power plant sites $6 million to pursue renewable energy projects—even though wind and solar require full back up from fossil fuel power plants so electricity is available in the frigid Northeast winters. Additionally, a new report from two Stanford Ph.D.’s, who spent 4 years trying to prove renewables can, ultimately, replace fossil fuels, have had to admit defeat: “Renewable energy technologies simply won’t work; we need a fundamentally different approach.”
Having lived with the 63-year-old Salem Harbor plant in her back yard for 20 years, Linda Haley, doesn’t, according to WGBH News, “understand why Salem would encourage use of a non-renewable fossil-fuel resource like natural gas when alternative investments in Green technology finally seem possible.”
These stories reveal the snow job that has been perpetuated on the general public regarding renewable energy. They don’t understand the need for power or how it works. They seem to believe that when a rule passes a magic wand waves replacing older, but still fully functional, power plants with wind or solar — that doesn’t produce electricity 24/7/365 as do the decommissioned coal or nuclear plants — and which require far more land to produce the same amount of, albeit intermittent, electricity.
An iced-up wind turbine or a solar panel covered in 7 feet of snow—even if some of it slides off—doesn’t generate electricity. And the cold days of a Northeast winter create one of the times when energy demand peaks.
Remember last winter’s polar vortex, when freezing weather crippled the Northeast for days and put a tremendous strain on the electric supply?
Congress, following the near crisis, brought in utility executives to explain the situation. Regarding the nation’s electrical output last winter, Nicholas Akins, the CEO of the biggest generator of coal-fueled electricity in the U.S., American Electric Power (AEP), told Congress: “This country did not just dodge a bullet—we dodged a cannon ball.” Similarly, Michael Kormos, Executive VP of Operations for PJM Interconnection (the largest grid operator in the U.S. overseeing 13 states), commented on operations during the polar vortex: PJM was “never—as some accounts have portrayed—700 megawatts away from rolling blackouts. … On the worst day, January 7, our next step if we had lost a very large generator would have been to implement a small voltage reduction”—industry speak for the last option before power outages.
About last winter’s grid reliability, Glenn Beck claims: “I had an energy guy come to me about 3 weeks ago. …He said, ‘We were one power plant away from a blackout in the East all winter long… We were using so much electricity. We were at the top of the grid. There’s no more electricity. We’re at the top.’”
This winter’s extreme weather—with new records set for November power demand—has already arrived. Come January, there will be not one, but two, fewer Northeast power plants since last year—not because they had to be retired, but because of EPA regulations and public sentiment. In a November 17 op-ed, former Senators Bayh (D-IN) and Judd (R-NH) said: “Vermont Yankee produced 26% of New England’s power during the peak of last year’s frigid weather.” The Northeast won’t have Vermont Yankee’s power this January.
Without these two vital power plants, what will the Northeast do?
For several months, since I had a chat with Weather Bell Analytics’ Joe Bastardi at the International Conference on Climate Change, I’ve continued to say that I fear people will have to die due to power outages that prevent them from heating their homes in the winter cold, before the public wakes up to the damage of these policies. AEP’s Atkins seems to agree. He told Columbus Business First: “Truth be known, something’s probably going to have to happen before people realize that there is an issue.”
“New England is in the midst of an energy crisis,” claims WGBH News. The report continues: “Residents and businesses are facing a future that may include ‘rolling blackouts’ on days when usage is highest.”
ISO New England, the agency that oversees the power grid, warns, in the Boston Globe: “Boston and northeast Massachusetts are ‘expected to face an electricity capacity shortage’ that could lead to rolling blackouts or the use of trailer-mounted diesel generators—which emit far more pollutants than natural gas—to fill the gap.” Ray Hepper, the lawyer for ISO New England, in a court filing, wrote: “The ISO simply cannot make megawatts of generation materialize that are not on the system.” In an interview, he added: “We’re really, as a region, at the point of needing new power plants.”
As the Salem Harbor story illustrates, natural gas will likely fuel those new power plants and environmental groups are expected to challenge construction. Plus, natural gas faces cost volatility. On November 20, the Wall Street Journal (WSJ), in the wake of November cold, not experienced since the 1970s when global cooling was predicted, featured an article titled, “Chill pushes up natural-gas prices,” that stated: “Natural-gas stockpiles shrank by more than expected last week reflecting surging demand.” As in the ’70s, many are now projecting, based on solar activity and other natural variables, a long global cooling trend.
While the Boston Globe, in September, said: “The upcoming winter is not expected to be as cold as last season,” Bastardi told me otherwise. He said: “This winter could be as cold and nasty as last year and in a worst case go beyond that to some of the great winters of the late 1970s, lasting all the way into April. As it is, we still have a winter comparable to last year forecasted, though the position of the worst, relative to averages, may be further southeast than last year.” During a November 19 appearance with Neil Cavuto, Bastardi suggested that we may see a bit of warming after November, but will have one, or two, very cold months after that.
The WSJ quoted Brian Bradshaw, portfolio manager at BP Capital in Dallas: “‘Everyone thinks it’s not possible’ to have another winter like last year, ‘But the weather does impossible things all the time.’” The WSJ added: “The natural-gas market is setting up for a repeat of last winter.”
So, why, when natural gas prices sit at historic lows that experts predicted will lower electricity rates, is the Northeast facing double-digit increases? The answer: there is no magic wand. The changes have been mandated, but the replacements aren’t ready yet. Ray Gifford, former commissioner with the Colorado Public Utility Commission, told me: “I don’t see how the gas infrastructure in New England can be built fast enough to replace retiring baseload capacity.”
Within the past decade, natural gas went from supplying less than a fifth of New England’s power to one half—which could be great if New England had natural gas, but it is, as Tim Maverick, Commodities Correspondent for Wall Street Daily, says: “gas-starved.” After last winter’s freezing weather, Maverick wrote: “The Northeast was slapped in the face with the reality that there’s not sufficient pipeline infrastructure to provide it with the mega-energy pull it draws in the colder season. This is probably because not one new pipeline infrastructure has been introduced in over 40 years. Natural gas consumption in the Northeast has grown more than 20% in the last decade, and not one new pipeline has been built. Current pipelines are stuffed and can carry no more supply.”
At the Edison Electric Institute financial conference on November 11, AEP’s Atkins confirmed that the proposed timeline to cut pollution from the EPA will shutter coal plants before completion of construction of new power plants using other fuels, or the infrastructure to move the needed natural gas around.
The lack of available supply results in higher prices. The Boston Globe explains: “Gas supplies for home heating are purchased under long-term contracts arranged far in advance, so utilities have the advantage of locking in lower rates. Power plants, on the other hand, often buy shorter term and are more exposed to price movements in the spot markets.” In the winter’s cold weather, the gas goes to people’s homes first. Different from coal, which is shipped by train, with a 30-day supply easily held at the point of use, the switch to natural gas leaves power plants struggling to meet demand, paying higher prices.
Addressing the 2013/2014 winter, Terry Jarrett, a former public service commissioner and a nationally recognized leader in energy, utility, and regulatory issues, said: “Natural gas couldn’t shoulder that burden, due in part to a shortage of infrastructure to deliver gas where it was needed—this despite record-setting production in the Marcellus Shale and elsewhere. But more importantly, whereas coal’s sole purpose is to generate electricity, natural gas is also used for home heating. And when push comes to shove, heating gets priority over generation.”
Last winter, coal and nuclear met the demand to keep the lights on and heat homes and businesses. AEP reports that 89% of its coal plants, now slated for retirement, ran at capacity just to meet the peak demand.
These shortages in the Northeast occur before the implementation of Obama’s Clean Power Plan that experts believe will shut down hundreds of coal-fueled power plants nationwide by 2016. New pipelines and new plants need to be built, but “not-in-my-backyard” attitudes and environmental activists will probably further delay and prevent construction as they have done in the Northeast, which will result in higher electric bills nationwide.
“Because less-expensive coal generation is retiring and in part is being replaced by demand-response or other potential high energy cost resources, excess generation will narrow and energy prices could become more volatile due to the increasing reliance on natural gas for electricity generation,” PJM’s Kormos told Congress.
The lessons for America’s energy supply learned from the Northeast’s far-reaching experiment, which has only resulted only in price increases and potential energy shortages, are twofold. First, don’t shut down existing supply until the replacement is ready, as legal action and local attitudes can slow its development. Second, you can cover every square inch of available land with wind and solar, but when extreme weather hits, it requires a reliable energy supply, best met by coal and nuclear.
Current policy direction will have all of America, not just the Northeast, freezing in the dark. I hope it can it be turned back before it is too late.
NOTE: A version of this content was originally published at Breitbart.com.
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