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Sun Volt Solar

earth, the final frontier

Clean Energy, Clean Environment

We are at a cross roads in human history, we can choose to continue on as we have been, or we can make a change to improve our future and quite possibly the future for several generations to come. We are here to promote energy independence, a better environment, a secure future and a higher return on investment for your hard earned dollar. It is what I believe in, it is why I am in the solar business.

The role of utility companies in a green economy

16 Aug 09 | Commentary, General, Solar Electric

I have been watching with interest the ongoing petition by our local utility company, Central Hudson Gas and Electric for rate increases.  This is the second request in as many years.

They have been not making as much money as in previous years.  Meanwhile, Xcel Energy has come right out and said it:  Customers who have PV panels installed are getting a free ride.  They would like to charge those customers for energy that they might use, which in the face of things sounds a little off to me.

So what is the role of a utility company for those customers who choose to install renewable energy systems?  Are they a giant battery, ready to give and receive power at the whim of a customer?  Can they charge for goods and services that might or might not be used?

This leads to several questions about the way we distribute electrical power in this country.  The customer who invests thousands of dollars to generate a portion of his own power should not be penalized because he doesn’t use utility company power.  On the other hand, utility companies incur significant expenses maintaining the distribution grid.

Then there are the power generators supplying the grid.  Those companies have to anticipate load demand and start or stop entire generating facilities to meet that demand.  Power plants cannot be simply switched on and off, it takes a good deal of effort to get some of these facilities on line.

Clearly some type of working arrangement needs to be implimented between small renewable energy generators and traditional utility companies.  Most of the PV systems being installed today, at least in my area, are grid interactive.  Take the grid away and the system shuts down.  Perhaps some small fee for storing the renewable enery system’s excess kWh until they are used would be fair.  After all, if not grid interactive, the other option is to install a battery storage system, which is expensive and maintenance intensive.   The utility grid is not free for the utility company, they should get something for providing a storage service.

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16 Aug 09 | Commentary, General, Solar Electric | Comments (0)

Central Hudson is requesting a rate hike

29 Jul 08 | Solar Electric

In one of the stranger press releases I have read in a while, Central Hudson Energy Group (NYSE:CHG) states:

Higher energy costs induced our customers to use less energy… the weakening economy has further induced our customers to use less energy… As a result, we believe it is necessary and prudent to take two actions. First, we are reducing our earnings guidance for 2008, and second, we are filing a utility rate case to bring our revenues into line with the costs to serve our customers. (emphasis mine)

Which is interesting in a way. The stock holders of a publicly traded company expect a certain payout over time, the utility company does everything in it’s power to provide that payout, including reducing line men and support staff, ect. However, when the economy really hits the floor and people begin conserving electricity so they can still pay for it, it is time to ask for a rate increase. Nice. By the way, I am already paying ¢16.8/kWh. How much higher can it go?

This is the problem with a publicly traded utility company. The most important thing is not the customer or the quality of service, its the bottom line on a P&L. It is more important to the CEO and the board of directors to keep the stock value high so they can get their yearly bonus and retire to Martha’s Vineyard than to provide good, reasonably priced electrical service to the community.

So, what is a homeowner to do? If you have read this blog, you already know the answer to that. Take control of the situation and be your own power company. Photovoltaics are looking more and more competitive these days especially with the state incentives available. As energy prices continue to rise and PV prices either stay relatively the same or drop, the utility companies will find themselves competing head to head with renewable energy products. They may find that they are pricing themselves out of a customer.

Update: It looks like they are filing for 3.5% increase on electricity and 10% on natural gas.

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29 Jul 08 | Solar Electric | Comments (0)