Energy Generation Opportunities
David Hall
Daily Policy Digest
Environment Issues
December 14, 2011
Household Electricity Bills Skyrocket
Electric bills have skyrocketed in the last five years, a sharp reversal from a quarter-century when Americans enjoyed stable power bills even as they used more electricity, says USA Today.
- Households paid a record $1,419 on average for electricity in 2010, the fifth consecutive yearly increase above the inflation rate.
- The jump has added about $300 a year to what households pay for electricity.
- That's the largest sustained increase since a run-up in electricity prices during the 1970s.
- Electricity is consuming a greater share of Americans' after-tax income than at any time since 1996 -- about $1.50 of every $100 in income.
Greater electricity use at home and higher prices per kilowatt hour are both driving the higher costs, in roughly equal measure:
- Residential demand for power dropped briefly in 2009 but rebounded strongly last year to a record high.
- Air conditioners and household appliances use less power than ever.
- But consumers have bigger houses, more air conditioning and more electronics than before, outpacing gains in efficiency and conservation.
Prices are climbing, too, hitting a record 11.8 cents per residential kilowatt hour so far this year, reports the Energy Information Administration. The increase reflects higher fuel prices and the expense of replacing old power plants, including heavily polluting -- but cheap to operate -- coal plants that don't meet federal clean air requirements.
Electricity cost varies widely depending on where you live. Cheapest: Northwest communities near hydropower dams -- as low as 2 cents per kilowatt hour. Most expensive major utility: Consolidated Edison, supplier of New York City -- 26 cents per kilowatt hour.
A potential bright spot: Electric bills appear roughly the same so far this year as last when adjusted for inflation, based on preliminary reports. However, the future of energy prices and the upcoming closure of more polluting coal plants make the long-term outlook cloudy for consumers.
Source: Dennis Cauchon, "Household Electricity Bills Skyrocket," USA Today, December 13, 2011.
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Hi David,I would love to see on site, or more localized generation, for security, flexibility, less vulnerability to terrorism or power outage, etc. Given new gas discoveries and recovery we have supply. Certainly for the next two or three decades, I think we should start shifting some of the coal generation to gas until a game changer comes along, which may be on the horizon. So how do we make this shift begin to happen in Texas? There are three coal generators going off line in the next two months and there are news stories of rolling blackouts this winter, let alone next summer!Something you should also be aware of is yet another new nuclear technology that is getting some serious funding and research. Why Bill Gates needed cooperation from China among others, and not get the same or more from the US DOE I can't imagine given the money they have been throwing around. But, I thought you would be interested in this. I have been to the Terra Power web site and Bill is putting his money where his mouth is. Congrats to Bill.
Thanks,
By THE ASSOCIATED PRESS
BEIJING — Microsoft co-founder Bill Gates confirmed Wednesday he is in discussions with China to jointly develop a new and safer kind of nuclear reactor.
"The idea is to be very low cost, very safe and generate very little waste," said the billionaire during a talk at China's Ministry of Science and Technology.
Mr. Gates said he had largely funded a Washington state-based company, TerraPower, that is developing a Generation IV nuclear reactor that can run on depleted uranium. TerraPower says it has discussed its plans with India, Russia and other countries with nuclear energy programs.
The general manager of state-owned China National Nuclear Corporation, Sun Qin, was quoted in Chinese media last week saying Mr. Gates was working with it to research and develop a reactor.
"TerraPower is having very good discussions with CNNC and various people in the Chinese government," said Mr. Gates, cautioning the talks were at an early stage.
Mr. Gates says perhaps as much as a billion dollars will be put into research and development over the next five years.
TerraPower says its traveling wave reactor would run for decades on depleted uranium and produce significantly smaller amounts of nuclear waste than conventional reactors.
"All these new designs are going to be incredibly safe," Mr. Gates told the audience. "They require no human action to remain safe at all times."
He said they also benefit from an ability to simulate earthquake and tidal wave conditions. "It takes safety to a new level," he said.
Since leaving Microsoft Corp., Mr. Gates has concentrated on philanthropy and advocating on public health, education and clean energy issues. He is an investor and strategic adviser to TerraPower.
Mr. Gates was at the Ministry of Science and Technology to talk about a joint project between China and the Bill & Melinda Gates Foundation to support innovative research and development to help alleviate poverty.
Mr. Gates said the ministry will help identify entrepreneurs and companies to manufacture new products in global health and agriculture to "change the lives of poor people," including new vaccines and diagnostics and genetically modified seeds.
"China has a lot to contribute because it's solved many of the problems of poverty, not all of them but a lot of them, itself, and many Asian, south Asian and African countries are well behind, whether it's agriculture or health," said Mr. Gates.