Last week PJM Interconnection, the company that operates the electric grid for 13 states (Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia) held its 2015 capacity auction. These are the first real, market prices that take Obama’s most recent anti-coal regulations into account, and they prove that he is keeping his 2008 campaign promise to make electricity prices “necessarily skyrocket.”A vote is scheduled this Wednesday in the Senate to overturn the regulation.
The market-clearing price for new 2015 capacity – almost all natural gas – was $136 per megawatt. That’s eight times higher than the price for 2012, which was just $16 per megawatt. In the mid-Atlantic area covering New Jersey, Delaware, Pennsylvania, and DC the new price is $167 per megawatt. For the northern Ohio territory served by FirstEnergy, the price is a shocking $357 per megawatt.
Why the massive price increases? Andy Ott from PJM stated the obvious: “Capacity prices were higher than last year's because of retirements of existing coal-fired generation resulting largely from environmental regulations which go into effect in 2015.” Northern Ohio is suffering from more forced coal-plant retirements than the rest of the region, hence the even higher price.
This regulation is truly insane - or rather, "transformative", in a heavy-handed, liberal-fascist sort of way. If this reg is not overturned, and if its inspiration is not tossed out on the sidewalk of Pennsylvania Avenue in November, then I guess the lights will literally be going out all over America.
Update: West Virginia's Democratic leadership is feeling the heat.
In a move showing how politically toxic President Barack Obama has become in parts of the country, three prominent West Virginia Democrats announced Monday they will not attend the Democratic National Convention in September.
Those opting out of appearing at the gathering of Democrats from across the country to officially re-nominate Obama for president include Sen. Joe Manchin, Gov. Earl Ray Tomblin and Rep. Nick Rahall.
I emailed one of my senators Paco, urging him to vote against this "malevolent farce" as I called it, but when I tried to email the other one, the system kept telling me I had to type in a zip code. Well I'd already done that, so I don't know why I kept getting the error message. I suspect that the Senator and his staff have had their computer guru tweak the software so that when it sees me emailing, it prevents me from sending the email. I think my congresscritters (all from the Jackass Party) don't appreciate the advice that I often send to them. I can't imagine why.
ReplyDeleteOof! Not attending the DNC Convention? With all sorts of stuff Dhimmicrats love? With free booze, cheap floozies, and rousing choruses of L'Internationale?
ReplyDeleteMan, Obama IS toxic, huh?
Michael: Keep up the good fight.
ReplyDeleteJeff: It's a sacrifice, no question about it.
I'm not too worried about obscene electric rates.
ReplyDeleteIf Obama gets four more, he'll force electric companies to lower their rates...after he forces them to raise them.
And when the electric companies go broke, the government will step in, and provide free electricity for all. All hail, the brave new Obamaland!
Deborah Leigh said...Many people have forgotten Obama's famous 2008 campaign interview wherein he promised that utilities would have to skyrocket in order for his agenda to succeed. He also stated that he wouldn't be upset if gas prices were more in line with Europe ($7.00 per gallon at the time).
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