Showing posts with label efficiency Vermont. Show all posts
Showing posts with label efficiency Vermont. Show all posts

Sunday, August 28, 2016

Nuclear Blogger Carnival #324: Here at Yes Vermont Yankee

Once again, we are proud to host the Carnival of Nuclear Energy Bloggers, right here at Yes Vermont Yankee. The Carnival is a compendium of nuclear blogs that rotates from blog site to blog site, and it is always a pleasure and an honor to host it.

Looking at the Future
(The future looks upbeat for nuclear energy.)

Another WISE Summer
At Nuke Power Talk, Gail Marcus describes how engineering societies have co-sponsored an internship program in Washington, DC. This program  introduces engineering majors to public policy considerations.  Some of the past participants have found that the program profoundly influenced their career directions. This blog post describes some of the topics in this year's program.  The program has been running since 1980, and Marcus has been involved with it, one way or another, since the beginning. Though next summer may seem far away, engineering students might make a note of this internship program as a possibility for next summer.

At Neutron Bytes, Dan Yurman describes an innovative partnership.  Tiny X-Energy, a start-up, has teamed with one of America’s biggest nuclear utilities, Southern Co., to collaborate on the development and commercialization of the design of a high temperature gas-cooled reactor.

Russia's sodium lead cooled fast nuclear reactors
At Next Big Future, Brian Wang describes how Russia has reached two more milestones in its endeavor to close the nuclear fuel cycle. First, Mashinostroitelny Zavod (MSZ) - part of Russian nuclear fuel manufacturer TVEL - has completed acceptance tests of components for its ETVS-14 and ETVS-15 experimental fuel assemblies for one type of reactor. In the second milestone, the company has begun work on the "absorbent element" of the core of the another type of reactor.

Until coal, oil and natural gas are eliminated from power and transportation usage any argument about solar versus nuclear is meaningless
At Next Big Future, Brian Wang describes how coal and oil continue to dominate world energy use. Therefore, plans and arguments about replacing nuclear with solar are--not very relevant.

At Yes Vermont Yankee, Meredith Angwin compares the costs of New York State's Clean Energy Standard program with Vermont's Efficiency Vermont program. Clean energy standards are cheaper per capita and more important than efficiency improvements. New York's surcharges are smaller and protect everyone's air.  Vermont's surcharges are bigger, and help only a few.

At Northwest Clean Energy, John Dobken announces that Energy Northwest will receive Washington State funding for an innovative solar project, including a technician training facility in Richland, WA.  
Energy Northwest is home to only clean-energy resources, the largest of which is Columbia Generating Station.  The company also has hydro, wind and solar projects.

Looking at Other Strategies, World-Wide
(Trigger warning.  Some of this is unpleasant.)

At Forbes, James Conca usually writes about energy issues. In this post, he notes that the Obama Administration is thinking about adopting a No First Use policy for nuclear weapons, in which the U.S. would declare that we will never be the first to use nuclear weapons in any conflict, under any circumstances. Our current, less restrictive policy, is known as calculated ambiguity.  This has worked for 60 years, and no one knows if changing this would be good or bad. 

At Forbes, Rod Adams writes about recent articles and documentaries from Al Jazeera.  The documentary basically attempts to convince its audience that fear of nuclear energy  is well-justified, and that keeping reactors closed is a proper response to the Japanese events of five years ago. Adams notes that Al Jazeera is a media empire that is owned by the government of Qatar, one of the world’s largest LNG exporters. During the five years since the Fukushima accident, Japan has been the world’s largest and most lucrative market for LNG. Japan has burning LNG to produce electricity, instead of operating the 50 nuclear power plants that were not damaged by the accident.




Monday, August 22, 2016

Clean Air versus Efficiency Charges. Clean Air Wins.

The Clean Energy Standard

New York State recently enacted the Clean Energy Standard, which has supportive subsidies for clean energy producers, including nuclear energy.

Yes, this was a huge change. The number of people who welcomed it was also huge.  You can see pictures of the rally in Albany at this blog post at Environmental Progress: Big New York Victory Shows How Far Nuclear Still Has to Go.  You can see Al Gore and Governor Cuomo congratulating the state in this Twitter stream, which was Storified by Nuclear Energy Institute.

August 1 Albany CES Rally
Michael Shellenberger at center
photograph by Stephen Whiting

 The Price of the Clean Energy Standard

In the Environmental Progress blog post, there's a graph of the amount of the clean energy subsidy for nuclear and renewables.

The current subsidy for New York state renewables is 4.6 cents per kWh.  This is the federal 2.2 cents  per kWh subsidy (the production tax credit), plus the Tier 10 subsidy by New York State of approximately 2.45 cents per kWh.   Over the various years, the New York Tier subsidy has varied between 1.5 and 3.5 cents per kWh, with most of the recent year New York subsidies being close to the current 2.45 cent subsidy.  These subsidies are set by an auction process.

The Clean Energy Standard price supports for nuclear are set depending on the price on the grid and the credit given by the Greenhouse Gas initiative, and so forth.    For Indian Point, the subsidy is zero. It sells into a high-price grid.  For the upstate plants, the subsidy is currently 1.7 cents per kWh.  If the price on the grid goes up, the nuclear subsidies go down.  In contrast, the 4.6 cents per kWh for renewables continue, no matter what the price on the grid might be.

The Price of Efficiency

A question I often get asked is:  why can't we just fund efficiency? Wouldn't that be better?

Well, no.  I will leave out the problem that you can only push efficiency so far, before we go back to candlelight.  Instead, I will look at Vermont's full-speed-ahead attempt to support efficiency.

Vermont has an entire agency, Efficiency Vermont, to promote efficiency. According to a government renewables and efficiency energy website, the funding for this agency has grown from $19 million in 2006 to over $35 million in 2010.

Efficiency Vermont is supported by a surcharge on everyone's electric bill, and that surcharge has been growing.  According to recent newspaper articles, linked below, the agency now has a budget of $50 million per year. There are 600,000 people in Vermont, so that is about $80 per person per year. Most households (one electricity bill) have more than one person, so their "fair share" could be hundreds of dollars a year (say, four times $80 or $320).  On the other hand, commercial and industrial users pay these charges, and this lowers the household cost.  I think the average residential bill for Efficiency Vermont is less than $200 a year.

As you can see, this per-person charge for Efficiency Vermont  dwarfs the charges expected from the New York State Clean Energy Standard.  The Governor's office in New York estimated the Clean Energy Standard cost at  $2 per household per month ($24 per year)   In contrast, Vermont efficiency costs approximately $80 per person per year.

Efficiency for Whom?


I spent a few years serving on my town's Energy Commission.   I am no longer on the commission, but I still appreciate energy efficiency.

Efficiency is getting a bad reputation, though.  In recent years in Vermont, there has been a rebellion against Efficiency Vermont charges,  A typical article from VPR is titled: House Brings Down Budget Axe on Efficiency Vermont.  Or in VTDigger: Amendment to H.40 freezes energy efficiency charge.  These articles state that Efficiency Vermont has a budget of about $50 million per year.

If you read the comments on these articles, you will read notes from people who wanted Efficiency Vermont to help them with the costs of energy improvements to their homes.  Many of them didn't get funded, and they were not happy about it. Many people did not qualify for the grants, for various reasons.  Some could not afford the blower-door tests that Efficiency Vermont required to start the efficiency process.  All in all, an efficiency grant helps me but not you, or you but not me.  If my neighbor has new insulation,  that helps him directly, but all I see of the insulation is a surcharge on my electricity bill.

It is no wonder that at $80 per person per year and only some people benefit--there was going to be pushback from Vermonters.

Clean Energy versus Efficiency

For some people, it's a no-brainer to fund efficiency instead of funding any kind of big nasty power plant.  However, when taxes and surcharges fund a clean energy source, everybody benefits from the clean air.  When efficiency is funded, only some people benefit.

Let's be honest. I  benefited.  I could afford a blower door test.  I could afford to work with a certified contractor.  Yes.  I have new insulation.  Every now and again, I want to thank my neighbors for donating the money (through their electricity bills) for my new insulation.  Well.  Maybe that "thank-you" would not be a good idea. ;-)

In contrast, clean energy benefits everyone. The benefits are as clean and clear as the air we breathe.

The New York State Clean Energy Standard is a great bargain for the people of New York.



Wednesday, October 28, 2015

Update: Fitzpatrick to close.Ginna Continues Operation, Surcharges in Context, and Fitzpatrick

Ginna Nuclear Power Station
Update: Entergy announces Fitzpatrick closing

Fitzpatrick now scheduled to close in 2016 or 2017.  Announcement was this morning.  Two links:

Entergy press release
Syracuse.com article




Ginna gets some relief

Ginna Nuclear Generating Station, in upstate New York, was struggling with some of the same issues that are causing Entergy's Fitzpatrick plant to be at risk.

If Ginna closed down, there might be reliability issues on the grid. Therefore,  Ginna was recently given 18 months of financial relief to keep it operating. Ginna is being helped by a surcharge on utility bills: the surcharge lasts from now till March 2017. The surcharge will give Ginna $15.42 million extra per month, in payment for its role in grid reliability.  This charge will cost about $2 per month per customer, in upstate New York.

References: Deal reached on fate of Western New York nuclear facility at Poltico New York (October 23), and Settlement reached in New York to keep the Ginna nuclear plant running at Utility Dive (September 16).

The possibility of this type of positive resolution (for the grid and for the plant) is a good reason to

Sign the petition to keep Fitzpatrick operating! 

If you live in New York, contact your state legislator and your congressman, and urge them to keep Fitzpatrick operating. 

What about the ratepayer?

Maybe this relief is great for the grid and the plant, but what about the ratepayer?  What about that
Fracking equipment
at wellhead
Wikipedia
$2.00 per month?

I'm not crazy about more costs to the ratepayer.  If I thought that increasing costs for the ratepayer was a good thing, I would join one of the "environmental" groups that believe electricity should be more expensive--in order to force people to use less electricity.  Instead, I am proud to be on the Coordinating Committee for the Consumer Liaison Group at ISO-NE.  I want to look out for the ratepayer.

With some hesitation, therefore, I share my opinion on the Ginna settlement. I think, in the long run, this settlement is good for the ratepayer, because without it, most of the pricing structure in New York would be held hostage to the fluctuating price of natural gas.

 If the utilities were not "deregulated," any decent utility would want a mix of types of plants on its grid. This mix would be a hedge against sudden jumps in prices for one fuel, sudden jumps in regulatory burden for another type of power plant, etc.

Now that we are "deregulated," the plant that is cheapest today can act as if it were going to be cheapest forever.  Other plants will close down, out-competed---but perhaps only for five years. Then when the once-cheapest fuel type becomes more expensive, the rate-payer is hung out to dry.

It takes many years to site, permit and build a power plant.  Meanwhile, in a single-fuel grid, the grid and the rate-payer have no choices.

Surcharges and Fitzpatrick

I decided to do a quick comparison of some local surcharges on electricity.  I will do this comparison in one-year units..

Ginna: $15.4 million per month, twelve months, $184 million/year, $2 per month per household, $24 a year per household.

Efficiency Vermont.  This utility has a visible surcharge on every Vermont householder's electricity bill.  It charges more than 1 cent per kWh, for all Vermont households.  For an average user (600 kWh/month) the surcharge is be about $7 per month or $84 a year per household.

Households pay this amount, and so do businesses.  IBM (now GlobalFoundries) rebelled, and the legislature enacted SMEEP for large businesses. Large business who make their own efficiency improvements can opt-out of Efficiency Vermont payments, by way of SMEEP. However, only GlobalFoundries qualifies for SMEEP.

Efficiency Vermont helps Vermonters insulate their houses, save energy, etc.  Unfortunately, in practice, this means that Efficiency Vermont collects surcharges from the many, and gives rebates to the few.  (What, me worry? I was one of the few. Efficiency Vermont  helped pay to insulate my house.)

Efficiency Vermont has been controversial, to say the least. Two examples:
Op-ed by Andrew Rudin:  Efficiency Vermont not so efficient.
Vermont Public Radio story: House brings down budget axe on Efficiency Vermont.

Carbon Tax: There is a proposed carbon tax in Vermont, which would start at $10 per ton of carbon dioxide and rise to $100 a ton.  This would eventually lead to a gasoline tax of $0.88 per gallon. This  tax is only proposed, of course.  Still, it gives an idea of what Vermont legislators are thinking nowadays.  (The article about the tax includes 200 comments.)  Meanwhile, an op-ed In Favor of a Carbon Pollution Tax was written by two people who identify themselves with a local anti-nuclear group. They support the carbon tax proposal.

In context

I am going to stop now.  I don't want this to be a treatise on every surcharge on the local grid. However, in context, it is clear that a surcharge for Fitzpatrick nuclear power is likely to be:
  • small (compared to Efficiency Vermont or to carbon taxes)
  • fair (everyone gets the benefit of stable prices on the grid, as opposed to some people get house insulation and some people get only higher electric bills)
  • controversial (no surprise here)

Meanwhile:

Sign the petition to keep Fitzpatrick operating! 

If you live in New York, contact your state legislator and your congressman, and urge them to keep Fitzpatrick operating. 



Wednesday, September 22, 2010

Economics and Vermont Yankee


In an earlier set of posts, I analyzed several economic reports about the impact of shutting down Vermont Yankee. I posted the most straight-forward reports as Economic Report Well Constructed. These reports reviewed the situation if Vermont Yankee continues to operate past 2012 with the situation in which it shuts down. With VY continuing to operate, reports show $60 to $80 million dollars a year more disposable income in Vermont, and around $7 million a year in state taxes.

This also translates into jobs lost or jobs gained. The graph of job creation and loss (above) comes from the Legislative Consensus Report, released in March of this year. The comparison between shutting down Vermont Yankee and keeping it open is straightforward, and agrees with results from several other economic studies. The job consequences are shown in the chart above.

Aside: As I discussed in another post, Economic Reports: De-Constructed, the assumptions for job creation for the Green scenarios are a bit murky, so we are sticking to the simple cases. End Aside.

If you double click on the chart, you can compare the black line (Vermont Yankee keeps running, no other change) with the red line (Vermont Yankee shuts down, no other change). You will see that shutting down Yankee leads to a job loss of around 1000 to 1500 jobs in the state. This loss goes on for years. It's ugly.

Rumors and Experience

Recently, however, I have been thinking that these estimates of job loss in the state are far too low.

Rumors about IBM

The rumor is that IBM might shut down its wafer fab plant in Essex Junction and move out of state if electricity rates rise. According to Wikipedia about Essex Junction, IBM has been in town since 1957. According to everyone, including Wikipedia, IBM is the largest employer in the state. Various websites list the facility as having around 6000 employees.

The latest word-on-the-street that I have heard is that some people in Essex Junction are selling their houses and looking for jobs out of state. They believe that the IBM plant will close if Yankee shuts down and electricity rates rise.

Is there any basis for these rumors? Who knows? I do know, however, IBM is very concerned with electricity rates. For example, when Vermont added an electricity surtax to fund Efficiency Vermont, IBM and other large electricity users insisted on a way to partially opt-out of the surtax. So Vermont started the Energy Savings Account program, allowing eligible Vermont business customers to self-administer energy efficiency through the use of an Energy Savings Account (ESA).

Experience with Other Manufacturing

In my day job, I write for various Vermont businesses, and one of my customers has been the Vermont Manufacturing Extension Center (VMEC). VMEC's primary mission is "To Improve Manufacturing in Vermont and strengthen the global competitiveness of the state's smaller manufacturers." VMEC is a public-private partnership, partially under the auspices of the National Institute of Standards (NIST). Among other things, NIST is the home of the Balridge National Quality Program and the prestigious Malcolm Balridge Quality Awards.

On VMEC's web page, Impacts and Successes, the right hand column contains links to many success stories. (I wrote some of these.) I hope you will look at these stories. Think about which of these manufacturing operations probably use a lot of electricity.

A partial list of the businesses of these VMEC clients includes:

Do you think these companies have significant electric bills? I think so.

Would a rise in electricity prices cause all these companies to fold? No. I'm not into the worst-case doomsday scenarios. (I leave that to the plant opponents.) Would it make them less competitive, less likely to hire, more likely to cut someone's hours? Would some of them perhaps fold?

I think so. Look at the companies, and draw your own conclusions.

The Tip of the Iceberg

In between rumors about IBM, and the list of VMEC clients, I believe the economic costs of a rise in electricity rates will be much worse than the legislative report indicates. Much worse. I hate to use hackneyed phrases, but possible job losses around Vernon are "just the tip of the iceberg" for the effects on Vermont prosperity.

It's a big cold iceberg, and we don't need it. If we don't relicense Vermont Yankee, we'll be inviting that iceberg to dinner.