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> But the bigger issue is that utilities are not incentivized to look for cheaper, more efficient solutions like reconductoring because they profit off capital

by scrlk 3y ago

> But the bigger issue is that utilities are not incentivized to look for cheaper, more efficient solutions like reconductoring because they profit off capital spending. I have no knowledge of how the regulatory funding mechanism works for US utilities, but I can say from experience that the UK regulator really does push for networks to find the minimum cost solution. There are other measures that can be taken before restringing. At a high level, these are the things that can be done to alleviate an overhead line constraint: * Are there any viable operational mitigations - i.e., can the normal running arrangement of the network be modified, such as transferring load on to another substation? * Are flexibility/demand response services an option? * Line reprofiling (changing fittings on towers, clearing vegetation) to run the line at a higher temperature

epistasis 3y ago
The US has horrifying amounts of corruption in utility regulatory bodies. Often times these are elected positions, but get little attention, and so the utilities can essentially buy themselves seats. One particularly bad example is in Arizona: https://www.degreespod.com/episodes/episode-09 https://www.degreespod.com/episodes/episode-09 There is also a lot of malfeasance at the legislative level. In Ohio, for just a few million dollars, utilities bought some very profitable legislation: https://www.cincinnati.com/in-depth/news/politics/2021/06/03/ohio-corruption-house-bill-6-bribery-timeline-larry-householder/5248218001/ https://www.cincinnati.com/in-depth/news/politics/2021/06/03... These are some of the extreme examples, but in general these regulatory bodies are poorly supervised and run by cronies of the utilities. And in California, even if the regulators are not corrupt, they are so incompetent that they may as well be bought off. PG&E has some of the highest costs for transmission and distribution of electricity in the country, yet transmission still causes fires and deaths. And it wasn't that long ago that they killed families in their homes with a gas line explosion.
drusenko 3y ago
In California specifically, IOUs like PG&E run off of a cost plus model on T&D and make no profit on generation (legacy of Enron) - surprise surprise T&D is growing by a CAGR of ~12% every year. Abhorrent set of incentives and the CPUC generally rubber stamps all of it.
- toomuchtodo 3y ago
  https://www.ktvu.com/news/pge-profits-soar-after-rate-hikes https://www.ktvu.com/news/pge-profits-soar-after-rate-hikes > PG&E reports it made a $2.24 billion dollar profit last year — a 24% increase from the year before. > In a call with investors, PG&E credits last year's rate increases with boosting its bottom line and said it expects to remain profitable through 2028. > "Shareholders are pocketing money based on record rate increases," said Mark Toney, executive director of the non-profit TURN, the Utility Reform Network. > Toney said PG&E is planning to ask state regulators to approve more rate hikes in the future. > "PG&E has currently sitting on the desk of the California Public Utilities Commission, no less than 12 separate proposals for increases – twelve," he said.

by scrlk 3y ago

epistasis 3y ago

The US has horrifying amounts of corruption in utility regulatory bodies. Often times these are elected positions, but get little attention, and so the utilities can essentially buy themselves seats. One particularly bad example is in Arizona: https://www.degreespod.com/episodes/episode-09 https://www.degreespod.com/episodes/episode-09 There is also a lot of malfeasance at the legislative level. In Ohio, for just a few million dollars, utilities bought some very profitable legislation: https://www.cincinnati.com/in-depth/news/politics/2021/06/03/ohio-corruption-house-bill-6-bribery-timeline-larry-householder/5248218001/ https://www.cincinnati.com/in-depth/news/politics/2021/06/03... These are some of the extreme examples, but in general these regulatory bodies are poorly supervised and run by cronies of the utilities. And in California, even if the regulators are not corrupt, they are so incompetent that they may as well be bought off. PG&E has some of the highest costs for transmission and distribution of electricity in the country, yet transmission still causes fires and deaths. And it wasn't that long ago that they killed families in their homes with a gas line explosion.

drusenko 3y ago

In California specifically, IOUs like PG&E run off of a cost plus model on T&D and make no profit on generation (legacy of Enron) - surprise surprise T&D is growing by a CAGR of ~12% every year. Abhorrent set of incentives and the CPUC generally rubber stamps all of it.

toomuchtodo 3y ago
https://www.ktvu.com/news/pge-profits-soar-after-rate-hikes https://www.ktvu.com/news/pge-profits-soar-after-rate-hikes > PG&E reports it made a $2.24 billion dollar profit last year — a 24% increase from the year before. > In a call with investors, PG&E credits last year's rate increases with boosting its bottom line and said it expects to remain profitable through 2028. > "Shareholders are pocketing money based on record rate increases," said Mark Toney, executive director of the non-profit TURN, the Utility Reform Network. > Toney said PG&E is planning to ask state regulators to approve more rate hikes in the future. > "PG&E has currently sitting on the desk of the California Public Utilities Commission, no less than 12 separate proposals for increases – twelve," he said.