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We Should Not Weaken the EPA

Sat ,06/05/2017

 

Opponents of the EPA are now seeking comments on regulations that need to be eliminated by the EPA. They are, of course, focusing on the regulations that save businesses money by allowing them to pollute the environment. Please submit a comment at the link above asking that  no steps be taken to weaken the EPA.

It is our birthright that we and future Americans have clean air, pure water, and a livable Earth. The EPA has done a great job in limiting pollution to our environment and to remove the regulations that protect us would be a grave mistake.
Though many would like to see the EPA stop limiting carbon emissions, there is well-documented scientific evidence, supported by 97+ percent of climate scientists who are members of the American Geophysical Union, that carbon emissions are making undesirable changes in the Earth and its eco systems. The U.S. is second only to China in emissions but emits six times as much CO2 on a per capita basis. If the U.S. is not willing to reduce its emissions, why should other countries?

If anything, the EPA should strengthen the Clean Power Plan and reduce the amount of coal burned. Coal contains small amounts of mercury, chromium, lead, cadmium, arsenic, sulfur, particulates, and radioactive isotopes. Man burns 6 billion tons of coal each year, releasing millions of tons of pollutants into the air and leaving several hundred million tons behind in the coal ash. Some pollutants eventually find their way into the water, the food chain, and into us. For comparison, mercury is 100 times as toxic as cyanide, arsenic is 20 times as toxic, and chromium(VI) is 4 times as toxic. These three are also are carcinogenic and accumulate in tissue. Even exposure below the allowed levels increases the chance of cancer over time. The sulfur and nitrogen oxides released by coal combustion harm plants and produce acid rain.

Polls show that the public does not support weakening the Clean Power Plan. The EPA’s plan may lead to increased electricity costs in the short term, but will lead to lower electric rates in the future. Coal and transportation prices are certain to increase in the future while the cost of renewable energy is falling. It costs upfront to build wind turbines and solar installations but, once they are in place, they are expected to function for 30 years or longer without any need for fuel.The EPA projects the Clean Power Plan’s proposed guidelines for particulates alone could prevent up to 3,600 deaths, 1,700 heart attacks, 90,000 asthma attacks, and 300,000 missed work and school days per year. As a result, for every dollar Americans spend on the Clean Power Plan, we will gain up to $4 worth of health benefits. So in terms of future energy costs, environmental benefits, and health benefits, the EPA Clean Power Plan is good policy for our citizens.

You may submit a comment up until May 15 at https://www.regulations.gov/document?D=EPA-HQ-OA-2017-0190-0042.

(C)  2017 J.C. Moore

Wichita: Doubling Down on Air Pollution

Sun ,05/03/2017

The Malheur Refuge and Standing Rock: A Tale of Two Standoffs

Wed ,07/12/2016

In 2016, two protests were held over the use of public land. It would seem reasonable that the law enforcement authorities would respond the same to each situation, but that was not the case.

The Malheur Refuge Standoff: In January, armed militants seized the headquarters of the Malheur national wildlife refuge in Oregon to protest the conviction of Dwight and Steven Hammond for arson on federal BLM land. The charges were brought because the fires had endangered the lives of firefighters.  Ammon Bundy, the son of the anti-government protester Cliven D. Bundy,  led the protest. The militants declared the federal government had no authority to manage the federal lands and demanded that the federal government cede ownership of BLM federal lands and the refuge to the state.

The group was heavily armed and expressed a willingness to engage in armed conflict to keep from being removed from the refuge The authorities did not try to  forcibly remove the protesters from the refuge. The standoff ended when cold weather and a lack of provisions caused the leaders of the militia to abandon the headquarters. They were stopped on US Route 395 by federal authorities and arrested.  Bundy was slightly wounded during the arrest  and  Robert “LaVoy” Finicum,  who had declared he would not be taken alive, was shot and killed by law enforcement officers while drawing his gun. Eventually 26 protesters were arrested and charged with felony conspiracy, but they were not convicted by a jury of their peers.

The Dakota Access Pipeline Standoff: The production of oil from the Bakken shale in North Dakota has increased dramatically in the last few years. To move the oil to market, the Dakota Access pipeline was proposed to carry 500,000 barrels of tarsands-like crude oil per day through North Dakota to a terminal in Illinois. The pipeline was originally scheduled to cross the Missouri River just north of Bismarck, but Bismarck residents were concerned that pipeline leaks would contaminate the city’s water supply. The Dakota Access Partners claimed that the pipeline would not leak, but that was not a credible claim. There have been several dozen leaks in pipelines in 2016 alone, with two recent ones in northern North Dakota  and near Bismarck.

To placate the Bismarck residents, the pipeline was rerouted South where it would pass under Lake Oahe, just one half mile above the Standing Rock Sioux tribal land. (See map.)0siouxThe Sioux were concerned that leaks  would contaminate their water supply, that the construction would disturb their cultural sites, and and that the Bismarck resident’s concerns were given greater weight than theirs.  The approval of the second route had been fast tracked by the US Corps of Engineers without a proper environmental or archaeological study, and without consultation with the Sioux nation. By law, any federal agency overseeing a construction project has to consult with native nations or tribes if there are places with “religious and cultural significance” nearby.

The Sioux also had a claim to the land under the Fort Laramie Treaty of 1851, and they sued in federal court to block the construction of the pipeline. They asked for an injunction to halt the construction until the case was settled, but the injunction was denied and construction of the pipeline continued. In October, the Standing Rock Sioux organized a protest just north of the reservation to block the bulldozers from clearing a path for the pipeline. When the protesters were set upon by dogs used by the private security for the pipeline, the the protest made national news. Protesters from across the country began arriving to support the Sioux until as many as 3000 protesters were camped in the area. The authorities called in help from other agencies and about 100 officers and private security officers arrived to police the protesters.

On November 20, in subfreezing temperatures, some of the protesters tried to clear the road of debris so medical assistance and supplies could reach their encampment. An altercation ensued with the security forces, who unleashed water cannons, tear gas, rubber bullets, and concussion grenades in a military-style assault on the unarmed protesters. According to sources at the scene, a dozen protesters were critically wounded or sustained head injuries and were rushed to the hospital, while 168 were treated for hypothermia and pepper spray exposure on-site. One woman may lose her arm after it was injured by a concussion grenade. The UN has denounced the governor of North Dakota, the Morton County sheriff, and the Dakota Access mercenaries for rights violations and inhumane treatment over the incident.

The Corps issued notice that on December 5th they would close public access to the Standing Rock encampment, and threatened “prosecution under federal, state, or local laws” of those who remained, declaring that the decision “is necessary to protect the general public from the violent confrontations between protesters and law enforcement officials.” There were no public citizens in the area except the protesters, and the threat of violence came mostly from a heavily militarized law enforcement response, which had called in help from over 76 different law enforcement agencies. In response, over 2000 veterans pledged to protect the Sioux from law enforcement actions and they began arriving at Standing Rock.

 On December 4, the Corps decided they would not issue the final permit for construction of the pipeline. Perhaps they were concerned about the legality of the permitting process, but more likely they were persuaded by the public outcry and the possibility of provoking an altercation involving an attack on veterans. The construction is halted for the time being, but the corporations involved have declared that the pipeline will be built. Further altercations are likely.

Questions: There is a sharp contrast in the way the two protests were handled. The main questions center around the timing: “Do armed protesters have a right to seize and hold public property until they decide to relinquish it? “, and,  “Does the state have a right to use physical violence on unarmed people protecting their land and water, to expedite a billion-dollar corporate project?”

 

(c) 2016 J.C. Moore

Carbon Fee and Dividend: Legislative Action Needed

Mon ,10/10/2016

Sen. Jerry Moran, R-Kan., was certainly right when he told a group of energy executives that cheap energy was necessary for our economy to be competitive and that legislation is needed to keep energy costs low (Wichita Eagle, Oct. 1 Business).

Fossil fuels provide cheap energy because they do not pay their external costs, which include cost to people’s health, the environment, and to the economy. Renewable energy is becoming less expensive and does not have the external costs that fossil fuels do.windmill4

The best solution is legislation that would favor a shift to renewable energy.

The effect of rising energy costs on the economy could be offset by a carbon fee and dividend system, in which a fee would be added to fossil fuels at the source to cover their external costs. All the money collected would be distributed equally to every household as an energy dividend. Those who switch to renewable energy or who save energy would have more to spend, which would stimulate the economy.

We should all hope that the legislation that Senator Moran is considering would be a carbon fee and dividend system, as it uses market principles to reduce air and water pollution while protecting the economy from rising energy costs.

 

(c) 2016  – J.C. Moore

We Must Switch to Renewable Energy

Mon ,25/07/2016

We must switch to renewable energy for health reasons, economic reasons, and environmental Temp pathsreasons.

Health reasons: The American Lung Association estimates that there are 26,000 deaths and 1.5 million cases of acute bronchitis and aggravated asthma caused by small particulates, much of it emitted from coal-fired power plants and from coal ash disposal. They estimate the economic benefits of reduced exposure to particulates alone could reach as much as $281 billion annually. Recently, fine particles have been implicated as a cause of Alzheimer’s and Parkinson’s disease and new research has revealed a troubling link between mental illness and air pollution that seems to particularly effect children.

Economic reasons: Besides reducing health care costs, a switch to renewable energy will help keep our future electric rates low. Wind and solar are falling in cost and are now competitive with energy from coal-fired power plants. Recently AEP/PSO in Oklahoma purchased 800 MW of wind energy saying the cost was now less than building new coal fired plants, and that the purchase will save an estimated $53 million in the first year and even more thereafter. Kansas currently has 27,000 jobs in the clean energy sector. Of those jobs 75% are in wind energy, and are growing at a rate of 2.3% per year.  By the end of 2016, 32% of Westar’s retail electricity will come from the wind.

Environmental reasons: Coal is 65 to 95 % carbon. What about the rest? Burning coal releases mercury, chromium, lead, cadmium, arsenic, sulfur oxides, nitrogen oxides, carbon dioxide,  particulates, and radioactive isotopes. Burning  coal releases millions of tons of pollutants into the air and leaves several hundred million tons behind in the coal ash. Some pollutants stay in the air and others eventually find their way into the water, the food chain, and into us. For comparison, mercury is 100 times as toxic as cyanide, arsenic is 20 times as toxic, and chromium(VI) is 4 times as toxic. These three are also are carcinogenic and accumulate in tissue. Even exposure below the allowed levels increases the chance of cancer over time. The sulfur, nitrogen oxides, and carbon dioxide released by coal combustion harm plants, produce acid rain, and increase the greenhouse gas concentrations. Switching to renewable energy would greatly reduce these  pollutants and help preserve the environment for future generations.

Summary: Investing in clean energy protects the environment, reduces death and disease from air pollution, and creates good, local jobs. We must develop policies to encourage the development of renewable energy investments and energy conservation. Our energy needs will best be served by a mixture of traditional and alternate energy sources, and we must be proactive in developing our renewable energy resources.

(c) 2016 J.C. Moore

Fossil Fuel Subsidies: The True Cost of Energy

Tue ,03/05/2016

The Wichita Eagle recently published an interesting  letter from Darrel Hart, president of the Wichita chapter the Citizens Climate Lobby. He pointed out that the House energy and water development bill , as it stands, provides subsidies of $95 million for wind, $632 million for fossil fuel and $1 billion for nuclear.

The letter goes on, “Clearly when it comes to winning subsidies, wind falls short. Legislators favoring carbon-based fuel spin the idea that if wind were economical, it could compete without government help. Well, what does that say about fossil fuel? It has been receiving billions in subsidies for decades.

Lopsided subsidies and favored treatment reveal the intent to pick winners and losers. A better solution is carbon fee and dividend legislation that cuts greenhouse gas emissions and corrects the artificially low price of fossil fuel created by tax dollars rigging the system against clean energy. Let markets reveal the true price of energy, and it will be the consumer who chooses the winner.”

Mr. Hart certainly has a good point, as carbon fuels are not paying their true cost.  windmill4Besides the $632 million subsidies to fossil fuels, we are also providing an even greater subsidy by allowing them to release their waste products into the air without paying the external costs, i.e., the costs indirectly borne by society.

The external costs for fossil fuels include health and environmental damage from particulates, nitrogen oxides, sulfur oxides, chromium, mercury, arsenic, and carbon emissions. An EU funded research study, Externalities of Energys ,  found that including external costs would increase the cost of producing electricity from fossil fuels by 30% for natural gas to 90% for coal, if costs to the environment and to human health were included.

The carbon fee and dividend system Mr. Hart is recommending would put a fee on carbon at the source, which would require the fossil fuels to include their external costs.This would allow renewable energy sources to compete with fossil fuels on an even basis, and would greatly favor a switch to renewable energy.

(c) 2016 J.C. Moore

Carbon Fee and Dividend: How Much Fuel Makes a Ton of Carbon Dioxide?

Mon ,11/01/2016

In Paris, 196 countries agreed to develop plans to reduce their carbon emissions in such a way as to keep global warming below 1.5°C.  Although each country will develop its own plan,  the best plan for the US, and many other countries, would be a carbon fee and dividend system such as that developed by the  Citizens’ Climate Lobby (CCL), which has broad bipartisan support.  CCL’s proposal would place a fee on carbon at the source, and market forces would then encourage reduced emissions, energy conservation and investments in renewable energy.  The fee collected is not a tax as it would be distributed equally to every household as a monthly energy dividend.

CO2 equivalent emissions: CCL’s legislative proposal would set an initial fee on carbon at $15 per ton of CO2 emission or CO2 equivalent emissions with the fee increasing by $10 each year until the US emissions drop to 1990 levels. The main contributors to CO2 are combustion of coal, natural gas, and gasoline, with minor equivalent emissions coming from other industrial chemicals.  A little chemistry allows us to calculate the tons of CO2 that a ton of each fuel produces.

Coal: It is hard to calculate coal’s contribution exactly as it has from 65% to 95% carbon and the rest is impurities. Those include mercury, cadmium, lead, manganese, selenium, sulfur, nitrogen, and some radioactive elements. Much of the environmental damage and many cases of lung disease can be traced to the impurities and to the mining of coal. For calculation purposes we will assume that coal is all carbon as graphite, but keep in mind that each source of coal is different.

The chemically equation for the reaction of carbon with oxygen is:

co22

 

 

 

 

Carbon       +     Oxygen    =>        Carbon Dioxide

The mass of each atom or molecule in atomic mass units (MU) is written on the atom. The equation says that 12 mass units of carbon react with 32 mass units of oxygen to produce 44 mass units of carbon dioxide. The equation is like a recipe and once you establish the basic relationship, it can be scaled up to tons quite easily, i.e. :

C            +          O2               =>                 CO2

12 MU Carbon + 32 MU Oxygen  =>   44 MU Carbon Dioxide    – or –

12 Tons Carbon + 32 Tons Oxygen    =>  44 Tons Carbon Dioxide

Thus, each ton of carbon produces 3.6 tons of carbon dioxide.

Natural gas: Natural gas is composed mostly of methane, CH4 , with small impurities of other hydrocarbon gases. Following the method above:

Rx

 

 

 

 

 

CH4            +         2O2                =>                 CO2                  +          2H2O

16 MU Methane + 64 MU Oxygen   =>  44 MU Carbon Dioxide  +36 MU of Water

16 Tons Methane + 64 Tons Oxygen    =>   44 tons Carbon Dioxide  +36 tons of Water

Each ton of methane produces 2.8 tons of carbon dioxide.

Gasoline: Gasoline is composed of many volatile liquid compounds, but it can best be represented as octane, which has eight carbon atoms and 18 hydrogen atoms, C8H18. (The model for Octane is large so here we will just work from the equation. )

C8H18     +         25/2 O2   =>        8CO2        +         9 H2O

114 AMU  Octane +   Oxygen  =>  352 AMU  Carbon Dioxide  +   Water

114 Tons Octane +   Oxygen  =>  44 tons Carbon Dioxide  +  Water

Each ton of octane produces 3.1 tons of carbon dioxide.

Note: This means that the initial carbon fee on fossil fuels would be around $40-$50 per ton of fuel. This would pay part of the external costs of using the fuel as well as encourage conservation and a shift to renewable energy. One gallon of gasoline is about 7 pounds and it produces about 21 pounds of CO2. That means that 95 gallons of gasoline will produce 1 ton of carbon dioxide. The $15 per ton carbon fee would increase the cost of 95 gallons of gas from about $200 to about $215, or about 7%.

Heat of Combustion: Each fuel releases a different amount of energy when burned, measured in kilojoules  of energy per  mole of fuel burned. Those are listed below along with another important quantity, the amount of heat released per mole of carbon dioxide released.

Fuel

 

 

 

 

Note that Methane releases more than twice as much energy as coal for each mole of carbon dioxide produced. This was the impetus to convert coal-fired power plants to natural gas-fired plants. That would help in the short term as natural gas has fewer impurities and produces more energy per mole of CO2 released.  However, there is another factor to be considered which is the Global Warming Potential of each greenhouse gas.

Global Warming Potential (GWP):   The amount that each greenhouse gas contributes to global warming depends upon its concentration in the atmosphere, it’s effectiveness at trapping heat, and its lifetime in the atmosphere. The focus is on carbon dioxide as it is the greenhouse gas whose concentration has increased the most by burning fossil fuels. Methane is very efficient at trapping heat and has a GWP 28 times that of CO2. Though methane’s concentration is low, it has more than doubled since pre-industrial times. There are other greenhouse gases which are more effective at trapping heat and have longer lifetimes, such as N2O, but their contributions are small because they have such low concentrations. Below is a table comparing those. Source.

co2 table

 

 

 

 

Although converting coal-fired power plants to natural gas might be advantageous in the short term, we should be concerned about methane’s volatile prices, the link between fracking and earthquakes, and its GWP. Large amounts of methane are lost from fracking operations, leaking gas wells, and pipeline leaks.  If even 4% of the methane produced is lost to leaks, then any advantage of converting to methane will be lost.  The EPA has taken steps to reduce methane loss to the air, but is a very difficult thing to measure. One study found that infrastructure leaks in the Boston area accounted for about 2.6% of the methane transmitted. And methane, when burned, still ends up as CO2 in the atmosphere. You can see from the table that the amount of methane in the air is growing, and rather than count on it for the future, we should focus on converting to renewable energy sources as quickly as possible.

(C) 2016  –  J.C. Moore

Note: Here is a model of octane for the curious:

octane

 

Sue the EPA over Clean Power Plan? The Public Does Not Support It

Thu ,05/11/2015

The leaders of the Republican Party in 26 states plan to sue the EPA to stop the Clean Power Plan. Those same leaders often justify what they want to do by claiming it is what the people want. But in this case, they are doing more what the fossil fuel companies want. The public in 23 of the states does not support the lawsuits, as in the chart below.

00support

The governors and attorney generals of the states want to make a name for themselves as “conservatives”, but it is a losing proposition for a number of reasons. The lawsuits do not actually represent a conservative position, as the EPA’s plan will lead to a shift to renewable energy which will keep billions of tons of carbon dioxide out of the atmosphere. In that respect, the EPA has the more conservative position.

The reason often given for the lawsuits is saving money on energy, but the politicians seem more interested in campaign money than saving money for their citizens. The EPA’s plan may lead to increased electricity costs in the present, but will lead to lower electric rates in the future. Coal and transportation prices are certain to increase in the future while the cost of renewable energy is falling. It costs upfront to build wind turbines and solar installations but, once they are in place, they are expected to function for 30 years or longer without any need for fuel.

It will cost the states lots of money for the lawsuits, and their chances successes is slim.   And, it will likely harm a number of citizens of the states if the lawsuit succeeds. There are many coal burning power plants in the US which operate without scrubbers to remove particulates, because coal is cheap and  scrubbers are expensive. The EPA projects the Clean Power Plan’s  proposed guidelines for particulates alone could  prevent up to 3,600 deaths, 1,700 heart attacks, 90,000 asthma attacks, and 300,000 missed work and school days per year. As a result, for every dollar Americans spend on the Clean Power Plan, we will gain up to $4 worth of health benefits.

So in terms of future energy costs, environmental benefits, and health benefits the EPA Clean Power Plan is a winner for the citizens. Perhaps the Republican Attorney Generals clamoring to sue the EPA should reconsider.

(c) 2015 J.C. Moore

 

Westar Energy's Rate Request: A Study in Short-Term Thinking

Sun ,23/08/2015

Many of America’s power companies have put their profits before the health of our citizens and the 6coalprotection of the environment. The American Lung Association estimates that the EPA’s proposed guidelines for particulates could prevent 38,000 heart attacks and premature deaths, 1.5 million cases of acute bronchitis and aggravated asthma, and 2.7 million days of missed work or school.  Yet, there are many coal burning power plants in the US which operate without scrubbers to remove particulates, because coal is cheap and  scrubbers are expensive.

Scientists have known since 1980 that our increasing CO2 levels were endangering our environment. All the world’s major scientific organizations are now saying that we must take immediate action to avoid environmental disasters.   There is really no effective way to remove carbon emissions from fossil fuel   plants, yet our power companies have fought a shift to renewable energy. Many power companies are now being required  to install costly upgrades to their coal-fired  plants, and  are trying to recoup the cost of their short-term thinking by raising their customer’s rates. Westar energy is a good example, and it is likely  that your electric company may  soon follow suit.

Westar Energy has requested a rate increase by $152 million a year, about 8% over its current rates. Most of the increase will go to upgrade its Wolf Creek nuclear plant, to install scrubbers at some of its coal-fired power plants, and to remove mercury from its La Cynge coal-fired power plant. Westar’s proposed rate design would shift more of its costs  from businesses to residential customers and increase the basic charge for residential service by $3 a month each year for the next five years. That means the cost to just keep the power on would increase from the current $12 a month to $27 a month. Customers who want to install their own solar or wind power would be required to pay a $50 customer charge or pay for power at the peak rate, effectively killing private investments in solar energy. Westar’s customers are understandably unhappy about this.

CEO pay and profits : As a Westar stockholder, I felt bad about the recent rate hearing in Wichita. Speaker after speaker, including several ministers and AARP representatives, testified about how the proposed increase in rates would affect the poor and elderly. The timing of the rate increase seems inappropriate. Morningstar moneyreported that last year the company’s top five executives received 23.5% in salary increases. Westar’s CEO now receives $3 million in compensation, more than 30 times that of our governor. A large portion of the compensation is in stock, which tends to encourage short-term decisions to increase stock value.

Many people also testified that the proposed rate structure would discourage private investments in energy efficiency, energy conservation, and solar panels. A poll by Magellan found that 76% of Westar’s customers oppose the tariff on solar panels, agreeing that Westar’s position was based on increasing its profit. Westar is also requesting a 10% return on investments which seems high for a company which has just invested several million dollars in executive raises.

A misleading process: Although Westar says it is committed to renewable energy and reduced carbon emissions,  their proposal would have just the opposite effect. There are number of red flags for investors evident in the rate proposal and in Westar’s actions over the last several years.  Many investors are now looking for long-term investments in environmentally and socially responsible companies. Westar may no longer fall into that category.  AARP ran a full-page ad in the local newspaper protesting the rate increase.  About 73% of Westar stock is held by  institutional investors and many of those are retirement funds.  If some of those retirement funds  decide to divest of  Westar’s stock,  the effect will certainly not be what the  CEO intended.

There was also concern about the integrity of the process, which was unnecessarily secretive and sometimes misleading. A local newspaper article pointed out that, ”Westar’s public notice fails to detail changes in billing, solar rates”.   And, the CEO’s letter to stockholders claimed that outside agitators were responsible for opposition to the solar fee – which was not what the Magellan study found.  His idea that solar customers were “free riders”  who didn’t  pay their fair share came from an ALEC meeting in Chicago.  Chicago?  It was propaganda created by power companies  worried about solar cutting into their market share.  His letter claimed that solar customers  who hooked to the  grid using net metering agreements were being subsidized by other ratepayers, though research has found just the opposite.  I would expect such a well-paid CEO to know about the research.

Solar Research: Studies in Vermont, New York, California, Texas, and Nevada concluded that net metering provided a net positive benefit for utility companies and their customers. A 2015 study done in Missouri is even more relevant to Kansas. A cost-benefit study of net metering in Missouri arrived at the same conclusion as the other studies, “ Net metering provides a net benefit. “ Missouri has 6000 net metering customers while Westar now has approximately 300. It is unlikely that a study done in Kansas would come up with a different result,  but the Westar executives claim differently.

Why should customers who cut their energy use in half by installing solar panels be charged an extra fee, while those who cut their use in half by installing extra insulation be considered differently? Westar claims they should be, but that seems unreasonable. Net metering customers are charged a fee to set up the system and for a safety inspection, but otherwise net energy metering customers should be treated just as any other customer when they use electricity and be reimbursed as any other supplier when they supply excess power. Charging solar customers an extra fee may actually cause an increase in electric rates.

Gaming the system: My son, who worked for a gas company, observed that in gas company rate cases they always asked for about twice what they wanted and settled for half of that.  Other than the money to have Wolf Creek comply with federal regulations, much of the other requests are unjustified. Residential customers are already paying a customer fee, an electricity fee, a fuel charge, a distribution fee, an environmental fee, an energy efficiency charge, and even Westar’s property taxes. Last June, our bill was $24.95 for electricity, but our total bill came out to be $53.27 after all those things were added in. The $12 customer charge is already greater than most other companies charge and Westar’s rates are second highest in our region. Westar has implied that residential customers are not paying their fair share of the cost. However, residential customers use about a third of the energy, but it seems they are being asked to pick up much more than a third of the cost of upgrades and pollution controls.

Westar owes a better accounting of the money it collects. There have been over 20 rate cases in the last six years. Too much time and resources have been devoted to rate cases designed to increase the company’s profits. The executive compensation seems excessive and much of it is in stock, which means a rise in profits will greatly benefit the executives. That tends to lead to short-term thinking, which is evident in this rate proposal. It does not take into account the increasing future regulations of carbon emissions and the need to reduce dependence on coal-fired power plants.

Settlement?  Just before the rate case was to go to the  Kansas Corporation Commission,  Westar cut  its rate request  in half. My  son said, ” See there”.   Westar also asked to postpone its request for a tariff  on solar panels to a later hearing.   Westar is now proposing a reduction in the subscription fee for wind energy customers, building its own solar plant, and selling solar power to customers. That is a big improvement, but Westar is  still relying too heavily on its coal-fired power plants. Three of its smaller plants have no scrubbers and they should be phased out as soon as possible.  Earlier,  $600 million was budgeted for upgrading the LaCynge plant.  I’m not sure how much of that has already been spent , but pouring more money into it to remove mercury may be a bad investment. It is expensive to remove mercury, but it is impossible to remove carbon emissions.

The Supreme Court, in Massachusetts v. EPA, ordered the EPA to make a determination as to whether carbon dioxide is a pollutant. The EPA found, based on the best scientific evidence, that CO2 is an endangerment to public health and has moved forward with regulations to reduce the carbon emissions from power plants. There will be future environmental regulations which will be costly to the coal plants. Why waste million of dollars in emission control equipment and spend millions importing coal from Wyoming when we could be transitioning to Kansas-based renewable energy?

The future: The Kansas Corporation Commission should approve upgrading the Wolf Creek plant, but carefully consider the amount of money requested. Moving forward with plans to provide customers with wind and solar energy subscriptions is in the right direction and should be encouraged. Other than that, there are better options for Kansas. The Kansas Corporation Commission should send the rest of Westar’s plan back to the drawing board.

(C)   2015 – J.C. Moore

 

The Citizens' Climate Lobby: A Better Way to Reduce Carbon Emissions

Fri ,21/08/2015

The article “Obama orders steeper cuts from power 6coalplants” described how the EPA’s proposed limits on carbon pollution could cost $8.4 billion annually by 2030. The Citizens’ Climate Lobby (CCL) has a better way, a Carbon Fee and Dividend,  which would produce  deeper cuts in pollution in a shorter time.  CCL’s proposal would place a fee on carbon at the source, and market forces would then encourage reduced emissions, energy conservation and investments in renewable energy.  The carbon fee is not a tax and it would not raise taxes. The money collected would be distributed equally to every household as a monthly energy dividend.

CCL’s legislative proposal would set an initial fee on carbon at $15 per ton of CO2 or CO2 equivalent emissions.  The fee would increase by $10 each year until the CO2 emissions were reduced to 10% of the 1990 US levels. To protect American businesses and agriculture, adjustments at the  borders would be made on exports and imports by the US State Department to ensure fairness. The carbon fees would be collected by the US Treasury Department and rebated 100% to American households, with each adult receiving a dividend and each child one half dividend up to a limit of two children per household.

A similar Fee and Dividend policy is successfully working in Canadian British Columbia. In 2008, BC enacted a revenue neutral carbon tax which set an initial rate of $10 per metric ton of CO2 equivalent emissions, increasing by $5 per year until it reached $30, which it did in 2012. The revenue went straight back to taxpayers as tax reductions with a tax credit paid to low income households of $115.50 for each parent and $34.50 per child annually. The tax raised the price of gasoline by about $0.25 per gallon and the price of coal by about $60 per ton. Though there were winners and losers under the BC plan,  it’s GDP grew in relation to the rest of Canada’s.

bc

British Columbia gets most of its electricity from hydroelectric power, so it is difficult to estimate the effect it had on the price of electricity. There are now no coal-fired plants in British Columbia and the consumption of fuel there is now 19% below that of the rest of Canada.

In the US, all the money collected from the carbon fee would be distributed to US households as a dividend – which would effectively stimulate the economy. President Bush’s Economic Stimulus Act of 2008 provided a $600 rebate to each household. A 2012 study by Christian Broda found the increase in disposable income was an effective stimulus to the economy. President Bush’s stimulus, however, was only for one year and the money came from taxes. CCL’s proposal does not come from taxes, and a $30 per metric ton fee on CO2 is estimated to provide about $876 annually per person in the US. Though the price of gasoline and fossil fuel generated electricity will certainly go up, it will be offset by the dividend. People who reduce their energy consumption, or choose lower cost renewables, will be able to  increase their disposable income by saving more of their dividend.

The CCL Fee and Dividend proposal has a wide range of supporters such as notable climate scientists James Hansen, Katharine Hayhoe, and Daniel Kammit.  It has the support of both conservative and liberal economists such as Gary Becker, Gregory Mankiw, Art Laffer, Nicholas Stern, and Shi-Ling Hsu. CCL’s advisory board is bipartisan as it includes George Shultz, former Secretary of State under Ronald Reagan, conservative former US Representative Bob Inglis (R-SC), and RESULTS founder Sam Daley-Harris, who is an advocate for solutions to poverty.

A study by Regional Economic Models Inc. found CCL’s proposed carbon fee and dividend would achieve better pollution reduction than regulations while adding 2.8 million jobs to the economy over 20 years. Ccl

What could be a better way to reduce carbon emissions?

 

(c) 2015  J.C.Moore                   

Credit: Darrel Hart, Wichita CCL leader, who helped greatly withthe editing.