A glimpse of our new utility model

Change the name Hawaii for Australia in this story. Then you might get a glimpse into our new utility model. Just like in Australia – east or west coast, Hawaii Electric, the US state’s biggest utility, has failed to create a long-term, customer-focused business model. The problem, according to the Hawaii PUC as reported as said last week is “An increasing penetration of utility-scale renewables and distributed generation has ‘broken’ the traditional utility-customer regulatory compact….An overhaul of the traditional cost-of-service utility regulation model is being touted as a possible solution.”

Now we hear you say but Tony and Joe are going to put an end to the renewable industry in Australia by 1 July 2014. Well, according to the Climate Speculator and Tristan Edis the Environment Minister, Greg Hunt says his Cabinet Colleagues are dreaming. http://www.businessspectator.com.au/climate .

We might get cheeky here and refer to CO2Land org’s last posting, 7 May 2014 – Fantasy and Budgets, in particular on after eating a mushroom Alice in Wonderland grew a mile high – we guess it was a magic one! However, no amount of distorted truths can hide the reality and its acceptance here, as in the US state utility regulators, there is a need to take steps to incentivize changes to the utility business model, and utilities should lead on these issues, instead of being dragged along. One furphy that can be dispelled by recent reports cannot attribute renewable to price increases, again quoting, 8 May, 2:22 PM, Explaining electricity markets to dummies by TRISTAN EDIS: “While economic modeling shows that the injection of lots of solar and wind power via the RET will lower wholesale electricity prices, 95% of politicians and 98% of journalists struggle to understand and accept it” (RET refers to Renewable Energy Target). We can only say, sad but true.

Now back to the utility change model, rather than waffle on like a ‘polly’ – aussie slang for politician. You might better get a grip on the case and idea by directly reading –

http://www.utilitydive.com/news/hawaiis-overhaul-of-the-utility-business-model/259923/

We should also add that in Australia, after eight years of study there is no evidence that Wind Energy in South Australia has been causal of wholesale energy price increases in that state or the eastern seaboard to which it is connected. To refer to that story refer to the Climate Speculator again.

Have got to go now – put my waste into the gasifier, produce syngas to start the generator for our power needs, it is cold overcast and foggy outside – need a backup for the solar on the roof. It is just like having a battery without acid. Sorry Alice!

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