Insurance companies got rich because of Obamacare rules, now electric utilities are poised to get rich because of Biden climate rules

 Utilities are shutting down "dirty" capacity without adequately replacing it. The law of supply and demand means only one thing: higher prices. OK, two: blackouts.

Meanwhile, tax credits under Biden's phony Inflation Reduction Act are masking the true costs of renewables.

From a Wall Street Journal op-ed "The Coming Electricity Crisis: Artificial-intelligence data centers and climate rules are pushing the power grid to what could become a breaking point" here :

Obama Energy Secretary Ernest Moniz last week predicted that utilities will ultimately have to rely more on gas, coal and nuclear plants to support surging demand. “We’re not going to build 100 gigawatts of new renewables in a few years,” he said. No kidding.

The problem is that utilities are rapidly retiring fossil-fuel and nuclear plants. “We are subtracting dispatchable [fossil fuel] resources at a pace that’s not sustainable, and we can’t build dispatchable resources to replace the dispatchable resources we’re shutting down,” Federal Energy Regulatory Commissioner Mark Christie warned this month.

About 20 gigawatts of fossil-fuel power are scheduled to retire over the next two years—enough to power 15 million homes—including a large natural-gas plant in Massachusetts that serves as a crucial source of electricity in cold snaps. PJM’s external market monitor last week warned that up to 30% of the region’s installed capacity is at risk of retiring by 2030.

Some plants are nearing the end of their useful life-spans, but an onslaught of costly regulation is the bigger cause. A soon-to-be-finalized Environmental Protection Agency rule would require natural-gas plants to install expensive and unproven carbon capture technology.

The PJM report cites “the role of states and the federal government in subsidizing resources and in environmental regulation.” It added: “The simple fact is that the sources of new capacity that could fully replace the retiring capacity have not been clearly identified.”

Meantime, the Inflation Reduction Act’s huge renewable subsidies make it harder for fossil-fuel and nuclear plants to compete in wholesale power markets. The cost of producing power from solar and wind is roughly the same as from natural gas. But IRA tax credits can offset up to 50% of the cost of renewable operators. 

Baseload plants can’t turn a profit operating only when needed to back up renewables, so they are closing. This was the main culprit for Texas’s week-long power outage in February 2021 and the eastern U.S.’s rolling blackouts during Christmas 2022.

Biden tailpipe rule will turn America into a Cuba of old cars

New York Post here:

Biden’s goals will push internal-combustion-vehicle prices into the stratosphere, and likely still not get consumers to play along; the 2032 mandate is beyond impossible to meet. 

Instead, Americans will keep older cars on the road far longer; even paying through the nose for clunkers and repairs will be the better bet.

 

May 2023: Average age of a car on the road in the US hit a record 12.5 years, up 3 months from 2022.

I have two cars for my family. One is 27 years old, the other 17. 

Remember Cash For Clunkers under Obama?

Yeah, I skipped that.

Kim Strassel: Biden is coming for your truck

The column is here:

It’s a tailor-made issue for Donald Trump, a perfect summation of his opponent’s radicalism. His campaign immediately trashed the rule as a diktat that will “force Americans to buy ultra-expensive cars they do not want and cannot afford while destroying the U.S. auto industry.” Just wait until he gets around to the bumper-sticker formula: “They’re coming for your truck.” An energy trade group has already been up with ads making that point in swing states, calling on Americans to reject Biden’s “EPA car ban.”

 

I found the source for Trump's well-founded fear of an auto industry bloodbath

 CNBC reports today:

Why a small China-made EV has global auto execs and politicians on edge :

There’s fear among global automakers that Chinese rivals like the Warren Buffett-backed BYD could flood their markets, undercutting domestic production and vehicle prices to the detriment of their own auto industries.

“The introduction of cheap Chinese autos — which are so inexpensive because they are backed with the power and funding of the Chinese government — to the American market could end up being an extinction-level event for the U.S. auto sector,” the Alliance for American Manufacturing, a U.S. manufacturing advocacy group, said in a report last month.

BYD sold 1.57 million battery EVs last year, up from just 130,970 all-electric vehicles in 2020. That sales growth was enough to surpass Tesla to become the world’s largest producer of electric vehicles in late 2023. 

The rise of BYD and other Chinese automakers led Tesla CEO Elon Musk in January to warn that Chinese automakers will “demolish” global rivals without trade barriers. ...

The company has quickly rolled out new and updated products. It’s also rapidly established manufacturing, as it has its eyes set on factories in Thailand, Brazil, Indonesia, Hungary, Uzbekistan and, potentially, Mexico. ...

Former President Donald Trump – the front-runner among Republicans in the 2024 presidential race – on Saturday suggested instituting a 100% tariff on cars made in Mexico by Chinese companies, should he be elected to a second term.

Bob Nardelli gets it

 "The general population will not be duped by this aversion [sic; read diversion] to try and blame inflation on corporate America. It starts at the raw materials, it starts at transportation, it starts at energy," former Home Depot and Chrysler CEO Bob Nardelli said on "Cavuto: Coast to Coast" Monday. "A whole host of things that are driving this up, wage increases." ...

"This is all about, I think, trying to buy votes. This is all about an administration that is out of control," he continued. "We have a strong bias towards spending versus having a conservative policy or a sustainable future."

More.

Reuters got it right, CNBC green lunatics try to soften the blow: "Rental giant Hertz dumps EVs, including Teslas, for gas cars"

Jan 11 (Reuters) - Rental firm Hertz Global Holdings (HTZ.O) is selling about 20,000 electric vehicles, including Teslas, from its U.S. fleet about two years after a deal with the automaker to offer its vehicles for rent, in another sign that EV demand has cooled.

Hertz will instead opt for gas-powered vehicles, it said on Thursday, citing higher expenses related to collision and damage for EVs even though it had aimed to convert 25% of its fleet to electric by 2024 end.

More.

 

Hertz makes ‘agile’ decision to shift strategy and sell EVs, Teslas

Contact your utility commission and complain about natural gas and electricity prices not coming down

 Utilities Get an Inflation Shock

Electricity and gas providers are encountering a pushback on rate increases:

 

Utilities get to pass through fuel prices, which means customers have been bearing the burden of higher natural-gas prices that surged following Russia’s invasion of Ukraine. On average, monthly electricity prices rose 13% in 2022 from a year earlier and 6% in the first 11 months of 2023, according to data from the Labor Department. ... Utility commissioners are either appointed by elected officials or elected themselves, which means they are sensitive to the financial pressures that ratepayers face. ... utilities were quick to ask for an increase on the allowed return on equity when market measures of capital cost rose yet slow to adjust rates when those measures declined.     

 

Has the natural gas portion of your utility bill dropped 60% like the price of natural gas in 2023 from 2022? Mine sure as hell has not.

Here are the average prices per year for Henry Hub natural gas:

2015: 2.62

2016: 2.52

2017: 2.99

2018: 3.15

2019: 2.56

2020: 2.03

2021: 3.89 +91.6%

2022: 6.45 +65.8%

2023: 2.53 -60.7%

That 92% jump in 2021 had nothing to do with Ukraine.

We're being gouged for green energy tomfoolery.

 

COMPLAIN, not to the utility, but to the utility commission. It's the only way.

 

In Michigan, go to:

 

https://www.michigan.gov/mpsc

 

 

 

 

 

 

 

Core pce inflation, which excludes food and energy measures, is still high at 3.5% year over year in October 2023, down 0.2 points from September or 5.4%

 Price increases at 3.5% instead of 3.7% year over year. This level remains outside of most people's experience since the late 1990s.

The broad measure fell to 3.0% from 3.4%. The energy goods and services component yoy has been negative, that is deflationary, for eight months in a row. The food component was up 2.0% year over year in October but is now in its tenth month of declines out of twelve on a year over year measure monthly.

Declining energy input costs have been the story behind declining inflation measures overall, primarily natural gas which is twice as important to the U.S. economy as gasoline on a BTU basis.

The Biden administration's green energy policy is at war with the reason for the happy circumstance of declining inflation measures it finds itself in, and Biden could be sailing to re-election if he were instead supporting fossil fuel production, which would slay the inflation dragon dead.

Dim bulb Jonathan Martin says Joe should heave Bidenomics into the dumpster just as broad inflation tanks from 3.7% yoy in September to 3.2% yoy in October

Perhaps the most overwhelming economic messaging advice I picked up from Democrats was for him to heave “Bidenomics” into the dumpster. Attempting to make voters believe something they don’t is folly. Attaching your name to that strategy borders on masochistic.

Here’s How Biden Can Turn It Around

Joe would be well on his way to re-election right now if he weren't shooting himself in the foot with his stupid green energy policies, which are keeping inflation from coming down harder than it already is.

That's what needs to go in the dumpster.

The gas and electric utility Consumers Energy here in Michigan is price gouging under Green Energy Joe, yours probably is too

Compared to November 2020, my new budget plan payment for combined natural gas and electric for the coming winter will be 42% higher than it was three years ago, despite the fact that natural gas prices have normalized almost to the penny.

Electricity is up 25% since Green Energy Joe got elected and isn't coming down, but that can't account for it since I consume far less electricity than natural gas on an average basis. More than 65% of my energy consumption in kWh is from natural gas in the last year, as it is every year, less than 35% is from electricity.

A 25% increase to 35% of my old bill would result in a total payment today less than 9% higher. Instead it's 42% higher.

Remember that the utility uses natural gas to generate the electricity, too, and it's paying normal prices today for the gas, not the inflated prices of the recent past.

There's no excuse for the extra cost I'm paying.

The utility is price gouging.

 

 

 

Overall inflation reversed course and ticked higher in August 2023 on a monthly jump in overall energy prices

 Overall inflation jumped up to 3.7% year-over-year and 0.6% month-over-month on a 5.6% jump in overall energy inflation month-over-month in August 2023.

Month-over-month, electricity was up 0.2%, gasoline was up 10.6%, piped utility gas was up 0.6%, fuel oil and other fuels were up 8.4%. Meanwhile food was up 0.2%.

Core inflation (overall inflation less food and energy) increased mom 0.3% and is still running 4.4% yoy.

Services inflation is still running high at 5.4% yoy, less rent of shelter at 3.1% yoy.

Shelter inflation rose mom 0.3% in both measures, and 7.2% yoy seasonally adjusted.

Going forward I expect inflation pressures to persist because of Biden administration green energy fantasies and hatred of fossil fuels combining with OPEC+ production cuts continuing indefinitely. 

The State of New York is run by green energy extremists who hate your use of natural gas, same as in California and Washington

First they came for your toilets, dishwashers, and clothes washers, and you said nothing.

Then they came for your coal, and you said nothing.

Then they came for your lightbulbs, and you said nothing.

 

Germany boosts electricity from coal to 10 gigawatts, a drop in the bucket

 Bloomberg, here:

Germany now generates more than a third of its electricity from coal-fired power plants, according to Destatis, the federal statistical office. In the third quarter, its electricity from the fuel was 13.3% higher than the same period a year earlier, the agency said.  

Germany as recently as 2019 still had 40 gigawatts of electricity capacity from coal, and planned to reduce that to 27 by 2022, so obviously Germany has much more capacity available than 10 gigawatts during its present natural gas supply crisis caused by the Ukraine war.

But Germany's more serious mistake than reducing its coal capacity was its voluntary and hysterical reduction of nuclear generation capacity by 40% in the wake of the Fukushima disaster in 2011. Now it's got just 3 reactors left out of the 17 it had back in the day. 

Meanwhile US electric capacity from coal in 2021 dwarfed the German, at about 210 gigawatts, but that is way down from almost 318 in 2011, a similarly ideologically driven, self-imposed, and illogical reduction of 108 gigawatts, or 33% in ten years.

The foolish growing reliance on unreliable "green energy" in the US and the turn away from coal which began in earnest under Obama has meant increasing unreliability of electric resources during extreme events, and a huge increase in the duration of power outages experienced by customers.

The average customer outage was just north of 8 hours in 2020 vs. about 3.5 hours in 2013, an increase of over 130%.

This will only get worse if America tries to rely on wind and solar at the expense of fossil fuels and nuclear.

 

 

There was nothing wrong with the coal or natural gas plants of the Tennessee Valley Authority: It was one-off wind damage and too many far-flung customers dependent on its electricity for heat

 Cold weather pushed up electricity use in TVA's seven-state region where more than 60% of homes are heated by electricity. ...

TVA Chief Operating Officer Don Moul is heading an investigation of the problems that led to the power outages last week. Moul said in a telephone interview that high winds damaged several of TVA's protective structures at the Cumberland plant and several gas-fired combustion turbines used for such peak power periods. TVA's directive to local power companies to cut some of their energy use was the most efficient means to respond to the inadequate energy supply, Moul said.

More. 

 

The left, of course, is blaming the fossil fuels themselves instead of wind damage to existing energy infrastructure, whose maintenance has been neglected in the rage for so-called green energy and against coal:

"[T]he mandatory blackouts were due to coal and gas failures," [Amy] Kelly [the Tennessee representative for the Sierra Club's Beyond Coal Campaign] said.

     

The hysteria of this prejudiced response is matched, however, by the feckless customers of the federally-run utility, whose only care is that their power was cut when it was 5 degrees F outside, and on Christmas Eve:

 

"Why would anyone in their right mind decide it is a GOOD idea to have rolling blackouts today? First of all, it is a whopping 5 degrees outside and second, it is Christmas Eve ... This is ridiculous."

Tennessee has had plenty of much colder temperatures than this Christmas and never had to turn off the power before, but that was before they went insane

 What we know: TVA ordered rolling blackouts for the first time in 90 years amid freezing temps

Tennessee Valley Authority retired 3,370 MW of coal electric power capacity in 2012, 2017, and 2018.

The reason for that isn't because the plants were old, built in the 1950s. TVA still operates a bunch of much older hydroelectric plants dating back as far as 1911.

It's pure anti-fossil fuel ideology driving that, and foolishly allocating new capacity to solar and wind, which can't cut it.

And that's why they had to shut off the power in Tennessee for the first time.

The damn fools got 0.7 inches of snow and said it was one inch deep, too.

 

CNN thinks November core inflation at 4.7% yoy is good news

There's never any discussion about how core inflation vaulted to the current levels well before the war in Ukraine even began.

The reason for the inflation surge is Biden's war for green energy, the one input which makes everything cost more because green energy costs much more than conventional energy from coal, oil, and natural gas.

Add trillion$ in COVID stimulus chasing too few goods and it's a recipe for the disaster which is ongoing, not moderating.

Some people get it. Most don't.

 

 

 

The Fed's Favorite Gauge Shows Price Increases Are Moderating

The traditional 60/40 portfolio is down 20.77% ytd

 VTSAX is down 24.89% through 9/30.

VBTLX is down 14.59% through 9/30.

And don't forget to subtract all-items inflation of 6.14% from Nov 2021 through Aug 2022!

Headlines are popping up advocating safe havens in cash and short-duration US Treasury securities, but you'll still lose in those relative to inflation, just not as much.

What a great job the Democrats have done this year! Destroying the bond market wasn't on my bingo card for 2022, even though the high and rising prices for bonds has been a deal-breaker for me for a long time.

The Democrats' green war on energy has consequences.

Is real war next?

LOL, reactionary California Senate votes 69-3-8 to keep Diablo Canyon Nuclear Plant open another five years as green energy not up to the task

 

As with electric cars, rooftop solar energy is great until it blows up and starts on fire: Now they tell us

 Between April 2020 and June 2021, solar panels atop Amazon fulfillment centers caught fire or experienced electrical explosions at least six different times. ...

The documents, which have never been made public, indicate that between April 2020 and June 2021, Amazon experienced “critical fire or arc flash events” in at least six of its 47 North American sites with solar installations, effecting 12.7% of such facilities. Arc flashes are a kind of electrical explosion. ... 

By June of last year, all of Amazon’s U.S. operations with solar had to be taken offline . . ..

More.

Before Joe Biden came down with COVID-19, he was at Brayton Point Power Station in Massachusetts, where 1530 MW of electricity used to be produced from cheap, plentiful coal

 Torn down starting in 2019, the former coal power plant will become a hub for just 804 MW of offshore wind energy, 52% of what used to come from that location.

Biden was accompanied by the usual suspects.

More.