Renewable Energy Stocks
Renewable Energy Stocks
Let’s Face It Renewable Energy Is The Wave Of The Future
Let’s Face It Renewable Energy… Is The Wave Of the Future
But What Can I Do Now To Lower My Electric Cost Until Renewable Energy Is More Cost Effective
In 20 years from now we will most likely all be using some type of renewable energy. In fact Bill Gates was quoted as saying that “renewable energy would be like the IT industry of the 90s over the next few years “. However we need relief now from the pressures of rising natural gas price and electric cost. There are some ways that we can do that based on the deregulation of those industries. And I will show you why we are able to have some control over what we pay for energy.
Utility Rates and Cost
Regulation of utility rates is based on regulation of utility costs. A utility’s costs are composed of twoprimary components — capital investments and operating expenses. Capital investments include generating plants, transmission and distribution systems, and other infrastructure such as office buildings.Utilities raise capital for investments by borrowing from lenders and issuing stock to investors.
Rate of Return
Regulators allow utilities to earn a rate of return on invested capital raised from investors, a sum that iscalled the rate base. Regulators set the rate of return in a range that allows a utility to earn a profit on its investment and attract capital at favorable rates (compared to bank borrowing). Payment of the rate of return allows a utility (and its investors) to recover its investment through rates. Thus, the rate of return allows a utility to recover a return on its investments (like interest on a loan) and a return of itsinvestments (like repayment of loan principal). Operating expenses for a utility consist primarily of generating-plant fuel costs, purchased power and transmission services, and labor. Fuel costs vary depending on how much power is produced. Labor costs vary somewhat with power production and other utility operations, but are mostly fixed costs, in the short run.The combination of debt service and operating expenses is the amount needed by the utility to operate effectively, its revenue requirement. Revenues from rates need to equal that amount. This, plus the allowed rate of return, sets the “rate level.” The process of rate makinginvolves translating the rate level into specific rates for each customer, a process called rate design. The rate-making ideal is for the cost of service to be perfectly allocated to each customer; that philosophy is one of “cost follows cause.” However, customizing rates for each individual customer is far too expensive and cumbersome. Instead, rate design approximates customer-specific costs by grouping customers into similar customer classes. Rates are then designed to recover costs from a representative customer for each class.Typical rate classes include residential, small commercial, large commercial, industrial, and street lighting. Customers are allocated into classes to ensure each class pays for an equitable share of utility costs. As a result, the use of utility infrastructure has to be allocated to each customer class. For example,residential customers require more infrastructure to serve because they use power at a lower voltage (which requires more substations, distribution wires, and transformers). Large industrial customers can use power at high voltage levels and are often served directly off the transmission grid. In other words, they may not require any distribution infrastructure – and may not pay for any share of those services.
Fixed Costs
Rates are also designed to recover fixed and variable costs equitably from each customer class. Fixed costs are assigned in rates through three mechanisms: 1) a customer charge, 2) a usage or kilowatt-hour charge, and 3) a demand charge.
Customer Charge
The first component, the customer charge, is designed to cover customer service costs, including metering, billing, and providing marketing and customer service facilities. The customer charge varies for each customer class and is generally a flat monthly fee regardless of consumption.
Kilowatt-Hour Charge
Recovering energy costs from customers is the second component of rates and the largest part of all power bills. Energy costs are recovered through a usage or kilowatt-hour charge. The simple form of a kWh charge is a fee that is the same regardless of time or quantity of use. Many small utilities use this kind of rate design, referred to as a flat rate, because it is easy to administer using simple kWh meters. However, most large utilities employ more sophisticated cost recovery mechanisms or rate designs. One common mechanism is for the cost per kWh to either decrease or increase as total use increases, which can be done through rate structures known as declining block or inverted rates. Inverted rates are the converse of declining block rates designed to discourage increased power use. Both declining block and inverted rates can have multiple blocks. The simplest form consists of two blocks.However, three or four blocks, each with a different kWh charge, are not unusual. Obviously, this kind of rate design requires regulation, as the utility earns extra profits as a customer consumes more power. Such a design would be impossible to implement in an open and competitive market where consumers tend to choose suppliers based on price. I took you through this little lesson in electric rates so that I can show you how to save money with fixed rates . Power production costs vary by time of day and season due to the differences inherent in the power plants that are on line during each period. Some utility rates also reflect these costs in time-of-use or real-time rate designs. Time-of-use (TOU) rates are similar to inverted and declining block rates in that the kilowatt-hour use charge varies in blocks differentiated by the time of use or season and often both. A simple TOU design may have a rate that changes on a seasonal, or monthly basis, with a higher kilowatt hour charge in months with high demand . This kind of TOU rate does not require the utility to invest in more complex and expensive TOU meters. TOU (time of usage meters ) meters can save you money but they cost about $1000.00 to install . Energy charges in deregulated markets will be based on prices set in real-time markets. This may not require customers to switch to real-time rates and associated meters, although most customers who do so will be in a better position to take advantage of competitive power markets.
You see your price doubles in the summer that’s why fixed rate electric is the way to go until renewable energy is to a point where it is more affordable and dependable .With “Customer Choice” plans you can lock your energy rates in for a set period to avoid spikes in energy cost . Or you can lock half of your rate to realize savings on the half that isn’t locked in or you can go with a variable monthly rate. These steps will give you some immediate relief until renewable energy catches up.
Renewable Energy Stocks
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Investing in Renewable Energy: Making Money on Green Chip Stocks (Angel Series) $4.87 |
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Sanyo XX Battery Powered by eneloop, 2500mAh High Capacity, 4 Pack AA Ni-MH Pre-Charged Rechargeable Batteries $24.99 RECHARGEABLE UP TO 500 TIMESLOW SELF DISCHARGE MAINTAINS 75% OF THEIR CHARGE AFTER 1 YEAR OF STORAGESTABLE VOLTAGE WITH LONGER POWER LIFE THAN ALKALINE BATTERIESNO MEMORY EFFECTSRECHARGES EMPTY OR PARTIALLY DRAINED BATTERIESPERFECT FOR USE IN POWERING HIGH DRAIN DEVICESUPC : 0086483080159Shipping Dimensions : 0.62in X 3.69in X 4.47inEstimated Shipping Weight : 0.29… |
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Horizon Fuel Cell Technologies H2GO Hybrid H2-Electric RC Toy Car $129.95 The result of five years of research and development in next generation energy technology, this battery-free working model is a to scale version of today’s laboratory vehicles running on renewable and zero emissions hydrogen fuel. State-of-the-art hydrogen fuel cell technology converts hydrogen into electricity at an amazing speed. This, in turn, powers a high-speed motor for high-speed racing. A… |
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Photo Jigsaw Puzzle of Seoul, South Korea from Prints Prints Prints $24.99 Photo Puzzle, Seoul, South Korea. Green grass model light bulb suggesting renewable power or sustainable energy in Seoul, South Korea. Chosen by Prints Prints Prints. 10×14 Photo Puzzle with 252 pieces. Packed in black cardboard box of dimensions 5 5/8 x 7 5/8 x 1 1/5. Puzzle image 5×7 affixed to box top. Puzzle pieces printed on RA4 paper at 300 dpi. This item is shipped from our American lab…. |
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The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World $14.06 The Industrial Revolution, powered by oil and other fossil fuels, is spiraling into a dangerous endgame. The price of gas and food are climbing, unemployment remains high, the housing market has tanked, consumer and government debt is soaring, and the recovery is slowing. Facing the prospect of a second collapse of the global economy, humanity is desperate for a sustainable economic game plan to t… |
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The Crash Course: The Unsustainable Future Of Our Economy, Energy, And Environment $27.95 The next twenty years will be completely unlike the last twenty years.The world is in economic crisis, and there are no easy fixes to our predicament. Unsustainable trends in the economy, energy, and the environment have finally caught up with us and are converging on a very narrow window of timeâthe “Twenty-Teens.” The Crash Course presents our predicament and illuminates the path ahead, so … |
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Biochar for Environmental Management: Science and Technology $75.19 Biochar is the carbon-rich product when biomass (such as wood, manure or crop residues) is heated in a closed container with little or no available air. It can be used to improve agriculture and the environment in several ways, and its stability in soil and superior nutrient-retention properties make it an ideal soil amendment to increase crop yields. In addition to this, biochar sequestration, in… |
