Va. environmentalists: Utilities should invest in energy efficiency
-- Requiring power companies to make greater investments in energy efficiency would save ratepayers money and create thousands of jobs, according to a study commissioned by environmentalists.
A coalition of environmental groups released the study today during a news conference at the state Capitol.
The coalition includes the Southern Environmental Law Center, Appalachian Voices and the Virginia chapter of the Sierra Club -- opponents of Dominion Virginia Power's planned $1.8 billion, coal-burning power plant in Wise County in far Southwest Virginia.
The environmentalists hope to pursue legislation in the coming General Assembly session to give power companies financial incentives to promote energy efficiency.
The state has approved the Wise power plant, but environmentalists are attempting to block it in court.
-- Rex Springston
Reader Reactions
Dave makes a common, but dangerous mistake in assuming that utilities are “normal” businesses. As regulated monopolies, utilities are entirely exempt from Adam Smith’s invisible hand (after all, if they sell something of a price or quality that the consumer doesn’t want, their status keeps competition from keeping them honest.) This is why utilities are not only no more fuel efficient today than they were 50 years ago, but are actually less fuel efficient than the first power plant ever built. With all their costs treated as pass-throughs via regulation and profits based on capital recovery, they have - in the name of shareholder responsibility - pursued high cost capital and ignored efficiency, causing us to pay too much for energy that emits too much CO2.
This is not to disagree with Dave that utility managers ulimately have an obligation to their shareholders. Rather, it is to point out that capitalism without competitive pressure is simply a tax (in the form of profits). If we’re not willing to reform the regulatory model, then mandates to pursue efficiency are the only way to get regulated utilities to pursue those environmentally and economically beneficial opportunities that they would be forced to do if they were subject to competitive forces. Is that ideal? No. But given the century-long failure of the our current model to pursue low cost, socially beneficial power, it is irresponsible on every level to support the status quo.
Dave I agree with you. These environmentalists belong to organizations that were created for several reasons. The primary one was a high income job source for the leadership paid by donations and grants of tax money extorted from taxpayers and second to force all of us into lifestyles they deem proper for us to live. In short they want to control our lives because only they know what’s best for us. They in no way represent any majority of Virginia citizens.
We should petition the General Assembly to revoke their tax exempt status since clearly they are not operating in the public interest but in the interest of those who are not representative of the people.
I think in this case Dominion Power should disconnect their electric service and let them experience the alternative energy lifestyle for a while.
Which power companies do the environmental groups wish to give financial incentives to?
Will it include the nuclear and coal and natural gas?
“New nuclear, hydrogen, methane hydrates and ocean power are beyond the 10 year scope of this Plan.“
So says the state of Virginia…
Dominion Power is in the business of making a return for people who invest in it. Any initiative that interferes with that is tantamount in my book to theft. Dominion makes money when it makes wise business decisions—not when ordered to do things by people who have no responsibilities to shareholders. If the environmentalists think they can do it better, then let them raise their own capital and start their own company instead of interfering with others. The market will decide who wins. Or do the environmentalists having something against markets?
Post a Comment(Requires free registration)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Advertisement