Alarming Privitization discussions

One more example of how what you don’t know is draining your pocketbook.

https://www.forbes.com/sites/jamesconca/2018/03/08/feds-consider-privatizing-public-energy-agencies-bpa-and-tva

The power lines in this picture are owned by our country but are among the very lines being discussed in the privatization article.

They carry 100% renewable energy from the huge hydroelectric generators in the Northwest and deliver it to families, farms, and factories at a price that leaves families with some discretionary money, and keeps the farms and factories globally competitive.

We must keep it that way.

BPA Power lines

100% renewable hydroelectric power lines.

Federal ownership of these lines is crucial to our renewable energy future. TVA, BPA, and WAPA were formed to distribute hydroelectrically generated electricity to industry and Rural Electrification Associations. These assets are a legacy created by the federal government to create jobs during the Great Depression.

The very low-cost electricity being provided by these giant hydroelectric dams on the Columbia and Tennessee rivers is one of the key elements that led to the US becoming the world’s dominant industrial economy. No other country could make electricity cheaper than our federally owned, and massive hydroelectric generating plants.

The electricity cost-benefit provided by federal ownership also translates into millions of good-paying American jobs that will remain secure as long as this cheap combustion free electricity is available. That is crucial to the well being of America, and our ability to compete on a global basis.

There is another reason I am so passionate about something that has never been a topic of discussion in any energy forum I’ve ever attended. In fact, it’s something that is only discussed behind closed doors in major investor-owned utilities, and it’s not something they want to see any big dialog around.

Transmission and distribution are is now the sacred lifeline that must replace the evaporating revenue from generation ownership and energy sales.

The end of the Investor Owned Utility business model, as it has operated for decades started looming about 8 years ago. Many thought it wise to invest heavily in renewable energy assets. What no one could really forecast in the turbulent renewable energy transition was that none of the renewable energy portfolios would meet performance expectations.

What they have done is render virtually all of the other core generation assets uncompetitive. This has led to the low profile (no news releases) divestitures of renewable energy portfolios, along with other underperforming assets. This includes relatively new gas generation.

The net effect is that the renewable energy rush has led to a situation where all generating resources are losing money. Renewables, Coal, Gas, Nuclear all losing money.

The only assets that are or can generate net operating profits are hydroelectric, and now, transmission, and the new golden goose, batteries.

This is why the TVA, and BPA transmission and hydroelectric generation facilities may be the most valuable electricity asset portfolios in our country.

I will share some horror stories regarding current investor-owned transmission assets in a following post.

 

©2018 William Ross Williams

 

 

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: