European Salon de News, Discussion et Klatsch - 1 April | 94 comments (94 topical, editorial, 0 hidden)

Re: bad news for US offshore wind (none / 0)

That proposal would be all well and good, if ratepayers could count on that counter-cyclical, credit spending government stimulus instead of private investment. But, you know, Keynes's cries are like, whatever, lost in the wind, eh.

Perspective on $0.244/kwh Deepwater - National Grid, Y1

Additional fees and taxes apply to kwh billing. For example, MD is an RGGI member, too. Itemization of Feb 2010 (seasonal residential rate/kwh) is as follows. And this wasn't an actual meter reading; Pepco estimates and bills! har har har.

Distribution Services
0.02247 (x 460KWH) Energy Charge
0.00003 (x 460KWH) Demand Side Management Surcharge
0.00062 (x 460KWH) Franchise Tax (delivery)
0.00015 (x 460KWH) Universal Service Charge
0.00533 (x 460KWH) MD Environmental Surcharge
0.00105 (x 460KWH) MoCo Energy Tax
0.02040 (x 460KWH) Gross Receipts Tax (%)
(0.00093)(x 460KWH) RGGI Rate Credit
(0.00105)(x 460KWH) Administrative Credit
SUBTOTAL $19.64

Generation Services
0.11579 (x 460KWH) Energy Charge
0.00016 (x 460KWH) Procurement Cost Adjustment
SUBTOTAL $53.34

Transmission Services
0.00348 (x 460KWH) Energy Charge
0.0204 (x 460KWH) Gross Receipts Tax (%)
SUBTOTAL $1.63
TOTAL $74.61

0.244 x 460KWH = $103.04 Generation Services, +93%
0.486 x 460KWH = $223.56 Generation Services, +319%

Deepwater's proposal is simply insulting.

Diversity is the key to economic and political evolution.

by Cat on Thu Apr 1st, 2010 at 11:01:25 AM EST
[ Parent ]

a few things here (none / 1)

you have to compare the number with 20-y indexation to what the prices will be then, so today's number is the relevant one;
you should also compare to what people are paying right now on Block Island itself, which is powered by diesel generators and thus much stiffer bills than onland;
more to the point, this is for a demonstration project (it only applies to the first 25-30MW), so the overall cost is not that big, while the benefits in terms of creating a precedent and demonstrating how the industry can be developed and what it means for all stakeholders are very real (don't rune before you can walk and all that, and show to people what turbines at sea actually look like)
what's required to develop the industry and create the jobs is a credible long term regulatory framework. If the support systems that make a project possible can be killed on a case by case basis, for silly short term reasons, manufacturers will never be interested to set up factories - they need at least 5 years of stable demand to do so...

Wind power

by Jerome a Paris (etg@eurotrib.com) on Thu Apr 1st, 2010 at 12:48:45 PM EST
[ Parent ]

Re: a few things here (none / 0)

eh?

re: Y1 - Y20, pymt pd

current NGrid rate = $0.09532/KWH
(excluding transmission, taxes, fees)
new NGrid rate = $0.244/KWH
(excluding transmission, taxes, fees)

final NGrid rate =
either Y20 $1.43/KWH (Y1 0.09532 + .486);
or Y20 $0.486/KWH (Y1 0.244 + 0.242)

NB. PUC Docket 4111, Y1 $0.244/KWH = $1.35/500KW/mo
on average

Diversity is the key to economic and political evolution.

by Cat on Fri Apr 2nd, 2010 at 10:37:34 AM EST
[ Parent ]

Re: a few things here (none / 0)

you're comparing retail prices to wholesale prices. NG may sell the power on Block Island at 9.5c/kWh for the generation component, but it is not able to procure is so cheaply at that particular location.

Also, the 24.4c/kWh will be for one of the supply sources of NG and will be mixed with its other sources. It is NG that will bear the possible additional cost on a small fraction of its supplies (possible, because the rest may become more expensive when gas prices go up again, as they will).

Wind power

by Jerome a Paris (etg@eurotrib.com) on Fri Apr 2nd, 2010 at 10:50:48 AM EST
[ Parent ]

Re: a few things here (none / 0)

Yes, I realize that now -- 0.244/KWH (8-turbine) is "wholesale" or levelized cost of energy distributed across all ratepayers-- after having read document history of NGrid negotiation with Deepwater since Oct 2009. The executed PPA rate moderates Deepwater's initial, inexplicable offer price for New Shoreham at Y1 0.30/KWH (7-turbine). The dramatic arc of haggling with private equity is a fascinating read, against the backdrop of RGGI "fair value."

Interesting, too, was reference to a Ontario Power Authority's Lake Erie PPA, recognizing 40% premium for offshore relative to onshore wind supply. That reference is more apt to NGrid's current supplier and distribution mix. As you know, I guess, NGrid already resells onshore wind at SOS +0.025/KWH - +0.34/KWH.

In any case my interest as always is "billing impact," and here in particular what appears to be amortization of ICC (for 8 3.6MW turbines and one $5M cable) that doesn't necessarily contribute significantly to avoided costs over the period. So I'm wondering, again, Where is Rhode Island's stimulus check? And what is the "feed-in" price at Y20?

And from what component(s) of does Deepwater's 18% ROI over the period derive?

Diversity is the key to economic and political evolution.

by Cat on Fri Apr 2nd, 2010 at 01:55:09 PM EST
[ Parent ]

European Salon de News, Discussion et Klatsch - 1 April | 94 comments (94 topical, 0 editorial, 0 hidden)

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