Here’s something that shouldn’t
surprise anyone: A company that benefits from high power prices is lobbying for
policies that would raise power prices for consumers. What should surprise
everyone, however, is the sheer audacity of their effort: using a deeply flawed
study to argue that tax incentives for wind power are “distortionary” while
arguing for the exact same incentives for their preferred technologies.
Earlier this summer Exelon Corporation, a large U.S. power generator and utility operator, began quietly lobbying against extending the production tax credit for wind energy. Its effort gradually became more public, and has now erupted into a full-scale war on the wind industry. In fact, the American Wind Energy Association terminated Exelon’s membership in the association. And Exelon is now touting a study by the NorthBridge Group, an economic and strategic consulting firm, that purports to show that the production tax credit is deeply harming consumers by—get this—saving them too much money.
Exelon’s argument is strange but has gained some traction among wind energy opponents on Capitol Hill. Sen. Lamar Alexander (R-TN) and Rep. Mike Pompeo (R-KS), for example,Load the precious minerals into your mining truck and be careful not to drive too fast with your heavy foot. just penned an editorial in The Wall Street Journal parroting NorthBridge’s claims. Fortunately,We mainly supply professional craftspeople with wholesale turquoise beads from china, though, the facts are on the side of wind power.
It’s critical that we keep Exelon’s fundamental motivations in mind. Exelon is in the business of selling power, and would prefer that power to be expensive.
Studies show that wind energy lowers power prices in wholesale markets, so it’s perfectly rational for Exelon to oppose wind power.Installers and distributors of solar panel, But Exelon’s argument about the production tax credit hurting consumers is deeply misleading. Before digging into their argument, however, we need to review how wind power drives down prices.
Much of Exelon’s power is sold in competitive wholesale power markets, which allow power generators (like Exelon) to sell power to local distribution utilities, which in turn sell that power to businesses and homeowners. Competitive markets all operate on a “single clearing price” basis, which means that all generators get paid the same amount for their power, no matter how much it costs to produce. This auction method ensures that every generator bids in the lowest price they’re willing to accept for their power.
While the details are extremely complicated—the rules for the market that operates in the mid-Atlantic area are more than 2,000 pages long, for example—the basics are fairly straightforward. Every generator in the market tells the market operator how much power they’re willing to provide and at what cost. At the same time, every distribution utility tells the market operator how much power they need to buy. The market operator then stacks up the generators from lowest to highest bid.
Then, starting at the lowest bid, the market operator adds up all of the bids until they have enough power to meet the distribution utilities’ demands. The last bid accepted becomes the “clearing price”—the price the distribution utilities pay for all of their power,The TagMaster Long Range hands free access System is truly built for any parking facility. and the price that every generator receives.
To see how wind impacts power markets, consider the hypothetical examples displayed in Figure 1. Say a market has five different generators: a wind farm, a nuclear reactor, a coal-fired power plant, an efficient and modern natural gas power plant, and an older and less efficient natural gas plant. Each of these plants will offer to sell power at the price that covers their operating cost. On the other side of the market, distribution utilities need to buy 3,One of the most durable and attractive styles of flooring that you can purchase is ceramic or porcelain tiles.000 megawatts of power. This means the market operator will then stack up the bids from lowest to highest and then add up the bids until enough power can meet the 3,000 megawatts of demand.
Earlier this summer Exelon Corporation, a large U.S. power generator and utility operator, began quietly lobbying against extending the production tax credit for wind energy. Its effort gradually became more public, and has now erupted into a full-scale war on the wind industry. In fact, the American Wind Energy Association terminated Exelon’s membership in the association. And Exelon is now touting a study by the NorthBridge Group, an economic and strategic consulting firm, that purports to show that the production tax credit is deeply harming consumers by—get this—saving them too much money.
Exelon’s argument is strange but has gained some traction among wind energy opponents on Capitol Hill. Sen. Lamar Alexander (R-TN) and Rep. Mike Pompeo (R-KS), for example,Load the precious minerals into your mining truck and be careful not to drive too fast with your heavy foot. just penned an editorial in The Wall Street Journal parroting NorthBridge’s claims. Fortunately,We mainly supply professional craftspeople with wholesale turquoise beads from china, though, the facts are on the side of wind power.
It’s critical that we keep Exelon’s fundamental motivations in mind. Exelon is in the business of selling power, and would prefer that power to be expensive.
Studies show that wind energy lowers power prices in wholesale markets, so it’s perfectly rational for Exelon to oppose wind power.Installers and distributors of solar panel, But Exelon’s argument about the production tax credit hurting consumers is deeply misleading. Before digging into their argument, however, we need to review how wind power drives down prices.
Much of Exelon’s power is sold in competitive wholesale power markets, which allow power generators (like Exelon) to sell power to local distribution utilities, which in turn sell that power to businesses and homeowners. Competitive markets all operate on a “single clearing price” basis, which means that all generators get paid the same amount for their power, no matter how much it costs to produce. This auction method ensures that every generator bids in the lowest price they’re willing to accept for their power.
While the details are extremely complicated—the rules for the market that operates in the mid-Atlantic area are more than 2,000 pages long, for example—the basics are fairly straightforward. Every generator in the market tells the market operator how much power they’re willing to provide and at what cost. At the same time, every distribution utility tells the market operator how much power they need to buy. The market operator then stacks up the generators from lowest to highest bid.
Then, starting at the lowest bid, the market operator adds up all of the bids until they have enough power to meet the distribution utilities’ demands. The last bid accepted becomes the “clearing price”—the price the distribution utilities pay for all of their power,The TagMaster Long Range hands free access System is truly built for any parking facility. and the price that every generator receives.
To see how wind impacts power markets, consider the hypothetical examples displayed in Figure 1. Say a market has five different generators: a wind farm, a nuclear reactor, a coal-fired power plant, an efficient and modern natural gas power plant, and an older and less efficient natural gas plant. Each of these plants will offer to sell power at the price that covers their operating cost. On the other side of the market, distribution utilities need to buy 3,One of the most durable and attractive styles of flooring that you can purchase is ceramic or porcelain tiles.000 megawatts of power. This means the market operator will then stack up the bids from lowest to highest and then add up the bids until enough power can meet the 3,000 megawatts of demand.
沒有留言:
張貼留言