Editorial

Who’s the Cheshire Cat?

Posted 12/30/14

Alice in Wonderland had an easier time of understanding the riddles of the Mad Hatter than Rhode Islanders have of making sense of why most residential and small businesses will pay a whopping 14 …

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Editorial

Who’s the Cheshire Cat?

Posted

Alice in Wonderland had an easier time of understanding the riddles of the Mad Hatter than Rhode Islanders have of making sense of why most residential and small businesses will pay a whopping 14 percent more for electricity over the next year.

Consider this:

• There’s an abundance of natural gas, which is used to generate about 40 percent of the electricity consumed in New England, yet we’re being told the higher rates are tied to an inadequate supply of natural gas.

• The explanation is that existing pipelines don’t have the capacity to supply the generating plants and meet the winter heating demands of homes and businesses that take priority over electrical generation. And, we are told, the plants must as a result either switch to oil – which is more expensive – or shut down.

• But with gasoline prices taking a welcome nose dive, isn’t the cost of oil also dropping? Wouldn’t this put downward pressure on the cost of producing electricity? And besides, this has been a relatively mild winter so far, so even though pipeline capacity may be an issue, is it one now? It seems National Grid is paying premium prices for electricity based on a worst-case scenario, not existing conditions. Understandably, the utility has agreed to pay a price in anticipation of the use of electricity, and those costs are being passed on to us, the users. National Grid argues it doesn’t profit from the higher rates. But somebody does, especially if natural gas-fired plants can keep the generators spinning.

Then let’s look ahead. There are more inconsistencies.

• National Grid requested a 24-percent rate increase for the next six months. Traditionally, the cost of electricity goes down in the summer. However, to ease the burden, the Public Utilities Commission elected to spread the increase over a year – hence, a rate increase of 14 percent. So when National Grid contracts to buy power for the summer and the rate is lower, will that savings get passed on to the consumers? Just wondering.

• Longer range, what will become of the second major source of electrical generation – nuclear, at more than 30 percent? Those plants are aging (Vermont Yankee is closing), and there are mounting concerns of their safety following what happened in Japan. What’s the plan if they aren’t licensed or upgraded?

• At one point, Governor Lincoln Chafee talked about hydropower from Canada, but that didn’t go anywhere. And as for renewable energy, solar, wind power and wood-fired plants now account for less than 10 percent of the electricity generated. It’s not an immediate answer.

So, where does this leave us besides paying more for electricity? There’s mounting pressure to increase natural gas pipeline capacity. It seems to offer a solution and perhaps lower rates, too. Someone is smiling.

We’d do well to identify the Cheshire Cat. They’d know.

Comments

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  • ronruggieri

    The Center for Freedom and Prosperity people have a problem with BIG GOVERNMENT but are oddly silent about the evils of BIG BUSINESS. But only BIG GOVERNMENT can protect small business and ordinary working-middle class people from this monstrous energy company greed. And despite Gordon Geko of " Wall Street " fame , greed is NOT good .

    Vital life resources like gas and oil and electricity should not be anybody's private wealth. We socialists say NATIONALIZE ALL ENERGY CORPORATIONS. The guilty Robber Barons disappear from public view. But like the Cheshire Cat leave only a smirky smile behind.

    http://radicalrons.blogspot.com/

    Wednesday, December 31, 2014 Report this

  • davebarry109

    Ronruggieri.....a self-avowed socialist. How will nationalizing the energy companies result in more natural gas? A pipeline will still have to be built. You blame greed when it is our own big government that is failing us. Where is your beloved congressional delegation on building energy infrastructure in New England to ensure low cost electricity for manufacturers? If we can't get decent costs for manufacturing, who will come here to supply jobs for the little people you commies...sorry, socialists always cry for? Get a life ruggieri....the really enemy isn't profit, its you liberal buffoons who think windmills will save us.

    Friday, January 2, 2015 Report this

  • ronruggieri

    The idea of socializing private means of production sounds like FLAT EARTH SOCIETY stuff and nonsense to individuals brainwashed by Ayn Rand drivel. Human civilization is now more than 10 thousand years old. Human society is not a machine which does or does not " work ". It EVOLVES organically like everything else in the natural world. It is not FIXED for all time. How did we ever cope before capitalism and private property ? Science and technical skill are not anybody's PRIVATE PROPERTY. Things can be produced in abundance -but in RATIONAL abundance- under socialism. Full employment is quite possible -even more probable- without the profit motive. It is capitalism that wastes human potential.

    The present government must attend to a decaying infrastructure. But it takes TAXES to do that. Not paying taxes seems the sacred obligation of the Ayn Rand billionaires -who should pay the most taxes. Yes, they love their country as much as I do. But they do not want to give it anything . Let working stiffs pay taxes and offer their children as a sacrificial lambs to the military-industrial complex. The Ayn Rand cranks have no problem with the military budget and now ENCOURAGE a nuclear attack on Iran. No problem with BIG GOVERNMENT here as long as it is used to oppress and kill the insignificant hordes of ordinary people not celebrated in " Atlas Shrugged " the novel and " Atlas Shrugged II ", the movie.

    http://radicalrons.blogspot.com/

    Friday, January 2, 2015 Report this