Wednesday, January 10, 2007

Harper turns Electrical standards over to the US!

This is evidence of how very little our politicians know of electricity and electric distribution; or is it? Text quoted in part from Allan Dane Msc Electrical Engineer,

Harper has turned much of the controls of Canada’s electricity over to the Americans! This done, with no consolation with parliament. There goes the farm!

It has come to my attention that the Hon. G. Lunn has agreed with the US Secretary of Energy that the Electric Reliability Organization (ER0) of the US Department of Energy shall govern electric reliability issues for all of North America.

It was stated, but under whose authority it was stated I was unable to ascertain, that this ERO would have the powers to impose very severe financial sanctions on any utility which failed to meet the demands imposed upon it by the ERO.

Directly related; Pacific Gas and Electric wants the legal right to adjust electric power costs without need to obtain regulatory approval. If this idea is approved, expect it to follow, automatically, in Canada since the Minister of Natural Resources has affirmed that the Electric Reliability Organization of the US Department of Energy shall decide all matters pertaining to electric reliability.

In Alberta and under the Conservatives the Electrical companies are allowed to write their own tickets. The EUB throws out increases for them seemingly based on excess profit expectations of the companies. Huge profits are not seen to be obscene they attract investment.

Under PGE's proposal, power costs would be tracked throughout the year. Then, on a specific date, rates automatically would shift to cover any differences. If electricity costs suddenly soared, a power-cost adjustment would transfer the hit to customers more quickly. But if costs fell below forecasts, customers would see rates drop faster.

As part of the proposal, PGE would absorb 10 percent of any change and ratepayers 90 percent. If actual power costs came in higher than expected, customer rates would increase 90 cents for one year for every additional dollar incurred for the previous year. If costs were lower, customer rates would fall 90 cents for every dollar of savings.

This means PGE can loose 10 percent and stay in the rich profit zone. It also means no one gives a dam about the consumer in this locked in market place.
Dig in!

John Clark
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