On the LAKE Front

Fixing the illusion of certainty in Georgia Power's decision-making

Why is it so hard to get a company like Georgia Power or The Southern Company to get on with solar and wind power for clean energy, for national energy independence, and, most importantly to such corporations, for their own profit? Why instead do they keep investing in coal and natural gas and wasting our tax and customer dollars on nuclear financial boondoggles? Why did Cobb EMC back new coal plants until they had their nose rubbed in national shame about corruption and do nothing about solar until their shareholders revolted and changed a majority of their board? We don't even need to wait for that forensic audit the new Cobb EMC board wants to get the big picture. Such companies consider what they're used to to be low risk, and anything new to be risky. Why are they so stodgy, and how do we change that?

These companies have many decades of experience with coal and natural gas, so they consider them less financially risky. (Details like neighbors dying disproportionately from cancer cost a little bit to buy up property, but that's nothing compared to readily predictable profits.) Even nuclear such companies consider not risky to them, since they've got the federal government and their own customers guaranteeing all the financial risk through Construction Work in Progress charges on their bills for power they're not even receiving from the new nukes and agreement from Georgia PSC that cost overruns like those caused by concrete sinking into the dirt can be passed on to the customers.

Neal Stephenson wrote for World Policy Journal September 2011, Innovation Starvation,

The illusion of eliminating uncertainty from corporate decision-making is not merely a question of management style or personal preference. In the legal environment that has developed around publicly traded corporations, managers are strongly discouraged from shouldering any risks that they know about—or, in the opinion of some future jury, should have known about—even if they have a hunch that the gamble might pay off in the long run. There is no such thing as “long run” in industries driven by the next quarterly report. The possibility of some innovation making money is just that—a mere possibility that will not have time to materialize before the subpoenas from minority shareholder lawsuits begin to roll in.

But if the old ways turn out to be suddenly risky, change can come. Funny how Cobb EMC changed its tune after subpeonas started raining down for its former CEO Dwight Brown. Sure, he got off on a technicality, but it turns out Cobb EMC shareholders didn't like

Dr. Sidney Smith speaks about solar tonight in Savannah

Received Tuesday. -jsq

Savannah, Ga.— The Coastal Group Sierra Club is sponsoring a presentation by Dr. Sydney Smith, owner of a solar farm in Bulloch County and co-founder of Lower Rates for Customers, which is currently providing solar power to a business in Savannah and looking to expand, selling its solar power below Georgia Power's rates.

Although Georgia's solar potential is enormous, Georgia is one of four states that does not allow energy to be purchased from private suppliers. Learn how Smith is challenging the law and Georgia Power to pave the way for lower rates and green energy.

The presentation begins at 7 p.m., Thursday, April 19 at the First Presbyterian Church, 520 Washington Ave., in Savannah.

We're just ripe for solar power --Cobb EMC

We already saw that private investment is funding a 100 acre 10 MW solar farm with Cobb EMC as a customer. What does that mean for Cobb EMC's direction? How big is Cobb EMC, anyway? And what does all this mean for Georgia Power, and for solar power in Georgia and all the jobs it can produce? What does it mean for everyone running for the Georgia legislature?

Kristi E. Swartz wrote for the AJC 16 April 2012, Solar project could be a catalyst for more if policies allow it,

"I always thought solar power was something further out for Georgia. We just weren't in the right time," said Chip Nelson, chief executive officer of Cobb EMC. "The way things have been moving in the utility industry, particularly the last two or three years, I find that we're just ripe for it."

Ripe indeed! Coal is dead. Nuclear is going down. Solar will eat the lunch of utilities that don't start generating it. It's time for utilities to get out in front and generate their own solar power. Austin Energy continues to show the way in Texas with a 30 MW solar farm. Now Cobb EMC can do the same for Georgia.

Nelson isn't some fresh outsider: he's a Cobb EMC lifer. According to Patty Rasmussen in Georgia Trend February 2012, Power Players: Taking Over At Cobb EMC,

Nelson worked for Cobb EMC for 37 years, most recently serving as chief operations officer. He stepped in as interim CEO in February 2010 and decided to apply for the full-time position.

And Cobb EMC is not small. According to Kim Isaza in MDJonline.com 20 July 2011 New Cobb EMC chief Nelson ready to ‘turn page’ on past costly litigation, divisiveness,

30 Megawatt solar plant opens near Austin

While Georgia Power continues to block solar deployment in Georgia, Austin Energy forges ahead in Texas with a utility-scale solar plant.

Here's their PR, Austin Energy Activates 30 MW Solar Farm,

AUSTIN, Texas , Jan. 6, 2012 /PRNewswire/ — Austin Energy along with Austin City Mayor Lee Leffingwell , and Village of Webberville Mayor Hector Gonzales today announced the activation of a 30 megawatt (MW) solar power plant located within the Village of Webberville, Texas . The activation of the power plant marks the first utility-scale solar deployment for Austin Energy and helps bring the utility one step closer to achieving a 35% renewable energy mix by 2020. It is the largest active solar project of any public power utility in the country, the largest active project in Texas and among the largest of all operating solar projects in America. The project was activated on December 20, 2011

The key was a PPA:

The utility-scale solar project was made possible through a 25-year solar power purchase agreement in which Austin Energy will purchase the energy at a fixed rate along with the renewable energy credits.

In Georgia, PPAs can be made with municipal governments, universities, companies, or even individuals, if SB 401 passes.

An opportunity for EMCs:

Why CWIP is a bad idea

Iowa is rejecting CWIP, and Georgia can, too. Here's why.

Herman K. Trabish wrote for Green Tech Media 22 February 2012, The Nuclear Industry’s Answer to Its Marketplace Woes: Construction Work in Progress (CWIP) financing shifts the risks of nuclear energy to utility ratepayers,

A sign of the nuclear industry's difficult situation in the aftermath of Fukushima is a proposal before the Iowa legislature

“Construction Work in Progress was intended to circumvent the core consumer protection of the regulatory decision-making process,”

that would allow utility MidAmerican Energy Holdings, a subsidiary of Warren Buffett's Berkshire Hathaway, to build a new nuclear facility in the state using Construction Work in Progress (CWIP) financing (also called advanced cost recovery).

“Investment in nuclear power is the antithesis of the kind of investments you would want to make under the current uncertain conditions,” explained nuclear industry authority Mark Cooper, a senior fellow for economic analysis at Vermont Law School's Institute for Energy and the Environment. “They cannot raise the capital to build these plants in normal markets under the normal regulatory structures.”

CWIP would allow the utility to raise the money necessary to build a nuclear power plant by billing ratepayers in advance of and during construction.

“Construction Work in Progress was intended to circumvent the core consumer protection of the regulatory decision-making process,” Cooper explained. “It exposes ratepayers to all the risk.” The nuclear industry's answer to its post-Fukushima challenges, he said, “is to simply rip out the heart of consumer protection and turn the logic of capital markets on their head.”

And the Iowa Utilities Board staff agreed with Cooper and recommended against CWIP.

His message to policymakers is simple, Cooper said. “This is an investment you would not make with your own money. Therefore, you should not make it with the ratepayers' money.”

Meanwhile, in Georgia:

What we can learn from no nukes and solartopia of 30 years ago

Why were only 12% of the projected 1000 nuclear plants built in the U.S. by the year 2000? Because of the no nukes movement started in Seabrook, New Hampshire in 1977. And because New Hampshire banned CWIP. Here in Georgia in 2012 we can cut to the chase and do what they did that worked.

Harvey Wasserman wrote for The Free Press 13 May 2007, How creative mass non-violence beat a nuke and launched the global green power movement,

Thirty years ago this month, in the small seacoast town of Seabrook, New Hampshire, a force of mass non-violent green advocacy collided with the nuke establishment.

A definitive victory over corporate power was won. And the global grassroots "No Nukes" movement emerged as one of the most important and effective in human history.

It still writes the bottom line on atomic energy and global warming. All today's green energy battles can be dated to May, 13, 1977, when 550 Clamshell Alliance protestors walked victoriously free after thirteen days of media-saturated imprisonment. Not a single US reactor ordered since that day has been completed.

How effective?

Richard Nixon had pledged to build 1000 nukes in the US by the year 2000. But the industry peaked at less than 120. Today, just over a hundred operate. No US reactor ordered since 1974 has been completed. The Seabrook demonstrations—which extended to civil disobedience actions on Wall Street—were key to keeping nearly 880 US reactors unbuilt.

The only new nukes ordered since then are the ones Georgia Power wants to build at Plant Vogtle on the Savannah River, for which Georgia Power customers are already getting billed Construction Work in Progress (CWIP).

Thirty years later, some things haven't changed:

Farm bill would reauthorize USDA REAP grants

Sen. Richard Lugar (R-Ind.) and Rep. Marlin Stutzman (R-Ind.) wrote for The Hill 5 March 2012, REFRESH Act: Strengthen rural communities and U.S. energy security

Reauthorize and reform the popular REAP program to demonstrate opportunities for economically viable energy investments and encourage loans rather than grants.

Rep. Sanford Bishop (D-Ga.) has long been working with local farmers and USDA to help with agriculture and rural jobs.

The Indiana Congress members continued:

Real commitment to rural growth requires that we put money where our mouth — or authorization — is. We offer basic mandatory funding that is more than paid for through cutting waste.

Renewable energy production creates jobs. Rural communities see potential for real economic growth in the emerging biofuel sector. Advances in technologies and agricultural techniques could offer economic benefits from coast to coast. Using the REFRESH Act as the basis for the next Farm Bill would help galvanize private investment in the sector, bringing jobs to a ready economy.

Indeed it can.

Obviously I like REAP grants, since we got one for Okra Paradise Farms. That 25% REAP grant plus an 35% ARRA NREL plus 35% GEFA credits will add up to 90% covered by grants and tax credits, which is a pretty good deal.

Now that remaining 10% is still a significant amount; like the price of a small car. But in 7-15 years (how long it will take to pay off this system, depending on how you figure it), what would the value of a car be? Much less than when you bought it. Meanwhile, these solar panels will be generating almost as much power as they are now, and they will continue to generate for at least a decade more, probably much more.

The big missing piece is up-front financing. Local banks will do it, but only for collateral. By which they mean real estate. Nope, they won't take the solar equipment as collateral, even though it would still be operational many years from now.

Local banks or credit unions could see this as an opportunity and start accepting solar equipment as collateral. Beyond that, with a few changes to Georgia law, to deal with the power utility territoriality clause, and maybe to ban boondoggle charges for more dangerous and less job-producing power sources, we could get a commodity market in solar power in this state. You could put up solar panels like this, or more, on your house or business roof, and sell your excess power to somebody in Atlanta with less roof space. That would produce widely distributed energy, reducing need for foreign oil or dirty coal, lowering your electric bills, maybe even producing you a profit, and generating local jobs right here in south Georgia.

Private investment is ready to come in for utility-scale solar projects.

And companies like SolarCity that already do everything from financing to installation could do that in Georgia. Or home-grown companies could do that. Or local banks could finance while local companies installed.

Anyway, we have here on our workshop roof a proof of concept, operational right now, purchased partly via a USDA REAP grant.

-jsq

Georgia Energy Trust Fund —Dr. Sidney Smith 2012 02 17

After the ribbon cutting for a new solar installation in Bryan County, Dr. Sidney Smith talked about a distributed commodity market in solar power, plus large private investment utility-scale solar plants, and then he told LAKE about the Georgia Energy Trust Fund.

Here's the video:

Georgia Energy Trust Fund —Dr. Sidney Smith 2012 02 17
South Eastern Pathology Associates,
Selling Power, Lower Rates for Customers LLC (LRCLLC),
Richmond Hill, Bryan County, Georgia, 17 February 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

We donate 1.5% of the money we make to this trust fund for the county.... Now we invest that money in Georgia bonds for the county. And then the county only gets half of the interest So the funds we donate for these counties will grow forever as a result of what we're doing with the trust fund...

It's invested in us, roads, airplanes, deep water, stuff like that.

And that's the key actually.

Private investment in utility-scale solar plants

After the ribbon cutting for the new Tabby Solar and Lower Rates for Customers installation in Richmond Hill, I asked Dr. Sidney Smith about using electric meter technology for utility-scale solar plants, for example 1-5 megawatts, for which there is private venture capital seeking opportunities.

Here's Part 1 of 2:

Private investment in utility-scale solar plants Part 1 of 2:
South Eastern Pathology Associates,
Selling Power, Lower Rates for Customers LLC (LRCLLC),
Richmond Hill, Bryan County, Georgia, 17 February 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

Dr. Smith said that was possible, plus he'd already been talking to some potential German investors,

If our system works as we have designed, they'd like to invest 100 million or more.

That would be quite a bit of solar energy!

Here's Part 2 of 2:

Private investment in utility-scale solar plants Part 2 of 2:
South Eastern Pathology Associates,
Selling Power, Lower Rates for Customers LLC (LRCLLC),
Richmond Hill, Bryan County, Georgia, 17 February 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

You can help by calling your state senator about SB 459.

-jsq

Enabling a commodity market in solar power: Dr. Smith's electric meters

Dr. Smith's electric meters enable a commodity market in solar power, with billing from generators to customers. And EMCs can take 1% or so for carrying the power, plus they can get advertising rights that could be worth more than selling electricity! If SB 459 or something like it gets out of committee and into law.

Dr. Sidney Smith explained how the electric meter he's developed uses cellular technology to facilitate direct billing from solar generator and customer. Gretchen asked him what if they generate more than they use. Dr. Smith said they wouldn't. I asked what if they added more panels. He said they could, but there are trees in the back.

Here's Part 1 of 5:

Enabling a commodity market in solar power: Dr. Smith's electric meters Part 1 of 5:
South Eastern Pathology Associates,
Selling Power, Lower Rates for Customers LLC (LRCLLC),
Richmond Hill, Bryan County, Georgia, 17 February 2012.
Videos by Gretchen Quarterman for LAKE, the Lowndes Area Knowledge Exchange.

He forgot about the parking lot out front where the panels he just connected are located: no shading there, and plenty of room for more solar panels.

Dr. Smith said the best places for solar are where there is no shade and near power poles. Gretchen asked how do you finance? Dr. Smith answered,