Tag Archives: coal burning

The Recession is over, are you ready for prices to go up?!

Yes we can officially declare the worst recession in the US outside of the great depression is finally over. We can now go back to living our lives like there is a tomorrow and that the US will be leading the world to a better 21st century.

We know the recession is over because house prices dropped in Texas by almost 5% last year. Now I know if you’re in another part of the country 5% sounds like nothing when we are talking about the drop in housing prices in the recession, but in Texas that’s still 5% and we don’t like our homes to lose any value or anything else we own for that matter. With that being the case and our ability to weather most any economic storm due to our oil and gas state revenues, when Texas hits the bottom we’re the last chip to fall. Therefore, the recession is now over and we can all breathe a sigh of relief.

Unfortunately, for most of us, now with the recession over we will start to see an increase in almost everything we use especially electricity. Electricity on average is now at the lowest price point in relative dollars since 1960. That probably seems incredible to most of you but you just don’t realize how much more electricity we use now than in 1960. The biggest contributor to that usage is centralized air conditioning but there are many other culprits as well including all those computers, smart phones, flat screen TV’s, outside lighting, and so many other conveniences of today. The electricity grids we have built to date are almost all operating at close to capacity and with the advent of deregulation there is no “big daddy government funding” to provide for the necessary upgrades required for the next 30 years of growth.

Texas is projected to grow tremendously over the next 25 years and there is almost no way the electricity grid can keep up. Additionally, natural gas is at 10 year low prices and although we have discovered huge reserves of new gas it will not remain at these artificially low levels. Not to mention that with a reviving economy we will see demand for natural gas double over the next 10-15 years, since it is now the cheapest and cleanest burning fuel on the planet. Furthermore, with the implementation of EPA requirements for coal burning power plants, it’s very conceivable that our cheapest way to actually generate electricity may become even more expensive than wind power and solar energy.

The bottom line is that although we may now be in a recovery the price of our basic commodities will start to increase and as they do we will see the impact and one of those areas will be electricity. So if you think your electricity bill is high in the summer in Texas today, just wait a few years. It’s projected that electricity prices could easily double by 2020 and although that seems a ways out they will be steadily increasing from this point on. At the Texas Electricity Alliance we are working to make sure our customers are prepared for this and we are constantly working with them to improve their efficiency with their electricity usage and making sure they always have the best prices in the market.

EPA is Now In-Charge in Texas and in Other States.

EPA | Texas ElectricityToday the New York Times reported on the new Supreme Court ruling to allow the EPA to use the Clean Air Act to enforce carbon emission standards on power plants. This is a hotly contested issue in both the House and Senate with one or the other threatening to neuter the EPA’s authority to do just that. The EPA through the Clean Air Act has broad powers to act in the public interest, but these powers have been expanded under the Obama administration to address one of the real culprits of greenhouse gases, power plants for electricity generation.

As many of you know, coal is the main source of fuel used to produce electricity in our great nation but is also one of the largest polluters in the nation as a whole. The billions and billions of tons of CO2 that we put into our atmosphere from burning coal to produce electricity is mind boggling. Yes it’s cheaper to generate electricity from coal than any other form of energy but that doesn’t mean we should keep doing it unabated while we now understand the possible long term consequences from our actions.

You’ll probably hear lots of bitching about this from big power producers and head-strong capitalist but don’t be deceived. We need to stop burning coal to produce cheap electricity and start using natural gas, of which we have discovered an abundance of over the past 10 years right here in the United States of America. Sometimes the liberals get it wrong and sometimes the conservatives get it wrong, but in this case they all have it wrong. We need strong leadership in our country and around the world to stop polluting our planet. We should immediately start replacing coal burning electrical generating plants with clean burning natural gas plants and then supplement those with wind energy, which we already subsidies with our tax dollars. Don’t listen to the naysayers on this, join the Texas Electricity Alliance and make a difference.

Click here to view the New York Times Article.