Proposal calls for cleaner power, more efficiency

[OKIsItJustMe]

http://www.baltimoresun.com/news/local/politics/bal-md.energy13feb13,0,5962915.story

Proposal calls for cleaner power, more efficiency

By Timothy B. Wheeler

Sun reporter

February 13, 2008

Warning that Marylanders face rising electricity costs, rolling blackouts and environmental havoc if nothing is done, the O'Malley administration urged lawmakers yesterday to act on its bills aimed at encouraging energy conservation and producing cleaner power.

"The goal at the end of the day is affordable, reliable, clean energy," said Malcolm D. Woolf, director of the Maryland Energy Administration. He and other officials said the governor's legislative initiatives "attempt to keep our bills down and our lights on" while also reducing the threat of global warming.

While many legislators voiced support, some said they were leery of asking consumers upset about soaring utility bills to pay a little more for less-polluting power or more efficient light bulbs and appliances - even if those purchases save them money over time.

"It seems to me that the weight of the governor's program is on the backs of the consumers," said Del. Emmett C. Burns Jr., a Baltimore County Democrat.

...

[Kolesar]

1. The point is that the utility will not have to put expensive power plants in the rate base

A surcharge of 3% on your electricity bill will ultimately mean that the utility does not have to build an expensive utility plant.

On the last time that First Energy put two new power plants into our rate base, our electricity rates almost doubled as the rates were phased in. 3% is a bargain

SEE -> www.aceee.org

[phantom power]

2. Our local utility, SRP, will pay me a rebate of $16K on a $36K PV installation.

Which I think is pretty damned remarkable. It makes no sense to me, except in terms of a strong desire to avoid new power plants. If they're willing to pay me $16.7K for 5.6 kilowatts during their peak load period, that would be $2.98 per watt. I guess that might be competitive with a centralized plant.

[Kolesar]

3. I knew there were rebates for "efficiency". Rebates to meet a REPS make sense, too, ...

...but I did not know they existed. Can you give me some more about SRP so that I don't have to look it up? I am out of hearts, so you will have to take that "as read".

*Renewable energy portfolio standard

[phantom power]

4. SRP = "Salt River Project"

I think of them as a sort of Arizona version of the Tennessee Valley Authority. Here's their "about us" menu, which has various topics including history:

http://www.srpnet.com/menu/about.aspx

Here's their FAQ on their PV and thermal incentives program:

What incentives will SRP provide to customers who participate in EarthWise Solar Energy?

* Solar electric program: $3.00/watt, up to a 10 kW system.
$2.50/watt for systems greater than 10 kW with a cap of $500,000 per system.

* Solar water heating program: $0.50/kilowatt-hour (kWh) of energy savings. For example, installing a system with 2,300 kWh of energy savings would result in a payment of $1,150 (2,300 x $0.50 = $1,150).

http://www.srpnet.com/environment/earthwise/solar/faq/financial.aspx

[OKIsItJustMe]

5. Power companies have to build for peak demand

Then, off-peak they've got more generating capacity than they know what to do with. That's why many companies offer peak and (discounted) off-peak rates.

PV plants' supply curves nicely match power companies demand curve. So, don't look at your solar panels as only producing power for a limited period of the day, look at them as decreasing required generating capacity 24 hours of the day.

(On top of it all, SRP may be working to meet an imposed renewable quota.)