BLACKOUT: The Failing Model of Electric Utilities

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  1. Carbon Man says:

    You missed the mark on a few things here. First, by looking at the “eastern U.S.” you include most of the deregulated electricity markets – markets in which the utility does not profit from the generation of electricity, they are simply “delivery” companies. Those delivery companies earn a REGULATED rate of return not based on sales, but based on their cost to operate the grid. Thus, lower demand and lower consumption does not change their revenue in the long term, they just have to wait for their next rate case to adjust the rates to account for the new structure.

    Second, Germany’s current rates are driven more by their shift to coal and natural gas (to replace the shuttered nuclear units) and are NOT driven by any dreamed up transition to green.


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