The Tennessee Energy Report

National Coal in Alabama applies for permit

2008-09-29T04:42:00.000-07:00

The Alabama Department of Environmental Management has yet to make a decision on whether to deny a permit for a recently proposed strip-mining operation in Cullman County near Smith Lake. More...

Investor's Buseness Daily hammers Gore

2008-09-29T04:35:00.000-07:00

... on his call for acts of civil disobedience when it comes to stopping coal-fired power plants.

When it comes to sheer crackpottery on environmental issues, no national figure can measure up to the lofty standard set by the former Tennessee senator and vice president. More...

What the people think

2008-09-29T04:25:00.000-07:00

Energy Pulse has found that Americans primarily blame the U.S. government for high energy prices.

Interesting, but not real surprising. Further, Americans blame government more for home energy costs but oil companies for transportation fuel costs. Overwhelming they want to be less dependent on foreign sources of oil and prefer expanded research into alternatives. I wonder how they'd feel about a higher tax on fossil fuels to pay for such research?

Not giving the other side an issue to hammer you with

2008-09-29T04:17:00.000-07:00

The strategy of the Democrats at the national level seems to me to be, from their perspective, a sub-optimal solution; give in to the Republicans who are demanding more drilling because people want it but then try to re-focus attention on alternative approaches.

Chattanooga Times Free Press: Rep. Lincoln Davis, D-Tenn., supported the lifting of the moratorium, but he has not been shy about criticizing Republicans for making drilling the centerpiece of the debate over energy policy, instead of a focus on alternative and renewable energy. More...

Growing oilseed for fuel in West Tennessee

2008-09-29T04:12:00.000-07:00

The idea behind the Tennessee Oilseed Diversification Program, initiated by the Memphis Bioworks Foundation in conjunction with Frazier Barnes and Associates, is to identify high-value oilseed crops that can be produced in Tennessee, and to develop a plan to get them processed locally into bio-based products such as biodiesel. More...

Audit saves steel firm money

2008-09-25T09:34:00.000-07:00

Nashville Business Journal: Steel Summit has seen the light.
The La Vergne firm, which cuts and distributes flat-rolled steel, was using a lot of electricity for not much light.
So the company installed energy-efficient lights and is on track to make its money back in two years.

Now the bad news... NES rates are set to rise in the wake of TVA's rate hike. On the other hand the price increase will mean that Steel Summit will save even more.

Does federal law protect the mountains?

2008-09-25T09:26:00.002-07:00

Candidates in South Carolina spar over mining regulations and differ with respect to what can and can not be done in the mining business. They cite Tennessee.

The bill "is not needed," Hawk said, "because Tennessee adhers to" strict federal laws that prohibit such a practice. "It's my understanding that in the late 1970s those laws were passed and enforced" in Tennessee.

The bill he is talking about is the Tennessee Scenic Vistas Protection Act (HB3348) Read the story here...

On the way...

2008-09-25T09:26:00.001-07:00

truckload of three large containers of nuclear waste left Oak Ridge, Tenn., today heading for the Waste Isolation Pilot Plant (WIPP) near Carlsbad. Link here...

Tag team opposes plan to import radioactive waste

2008-09-25T07:32:00.000-07:00

EnergySolutions is seeking to bring the waste from Italy to Tennessee to process and then bury about 1,600 leftover tons of waste in the company's disposal site in Utah's west desert.

Not so fast say U.S. Reps Jim Matheson (D-Utah) and Bart Gordon (D-Tennessee). They are asking the NRC to reject the application to import the waste because it is unclear whether EnergySolutions has a place to store it. Read more here...

What are you doing TVA?

2008-09-25T05:33:00.000-07:00

"Why is TVA leading a charge again" toward a nuclear power program that led to an indebtedness of more than $25 billion 20 to 30 years ago?

That question was asked by Dr. Arjun Makhihani yesterday. His consultation back in the early 80's led TVA to cancel eight reactor projects which explained howTVA incurred about $25 billion in debt. Read more...

Too late, clean-coal project underway in WV

2008-09-25T05:26:00.000-07:00

VP candidate Joe Biden was caught bashing clean coal the other day and this citizen reporter responds...
On July 28, 2008, CONSOL energy announced that it intends to develop through a joint venture, their first U. S. Coal gasification and liquefaction plant in West Virginia-an $800 million investment in the state. It will help the State of West Virginia become a leader in a new direction for energy independence. It has the potential to transform West Virginia from a major coal-producing state to a national energy center as well. Read more...

Harsh rhetoric against coal

2008-09-24T12:00:00.000-07:00

"If you're a young person looking at the future of this planet and looking at what is being done right now, and not done, I believe we have reached the stage where it is time for civil disobedience to prevent the construction of new coal plants that do not have carbon capture and sequestration," Gore told the Clinton Global Initiative gathering to loud applause.
So said former VP Al Gore. Read about it here...

U.S. House Dems will let drilling ban lapse

2008-09-24T11:55:00.000-07:00

WASHINGTON (CNN) -- After months of high-pitched battles with Republicans over the issue of offshore drilling, House Democrats have given in and decided to allow a 26-year ban on drilling to expire at the end of the month. More...

Depends on who asks

2008-09-23T12:45:00.000-07:00

Dem VP candidate Joe Biden taped saying no to new coal-fired plants.

“We're not supporting clean coal,” Biden said. “Guess what? China is building two every week, two dirty coal plants. And it's polluting the United States, it's causing people to die.” More...

At the Convention Sen. Obama included clean-coal in the mix...

“As president,” said Obama, “I will tap our natural gas reserves, invest in clean coal technology and find ways to safely harness nuclear power.”

Speaking to United Mine Workers in Virginia recently Biden said...

“we have enough coal in the United States of America to meet our needs domestically for the better part of the next 100 to 200 years.”

A campaign spokesman later asserted that Obama-Biden support clean-coal technology.

Water in Transuranic Waste complicates shipping

2008-09-23T12:37:00.000-07:00

The first shipment of remote-handled waste from Oak Ridge to WIPP (Waste Isolation Pilot Plant located in New Mexico) could occur in November, according to recent statements by Steve McCracken of DOE. More...

Oil prices fall after dramatic increase

2008-09-23T12:33:00.000-07:00

The October contract, which expired Monday, surged as much as $25.45 to $130 a barrel before falling back to settle at $120.92, up $16.37 — the biggest one-day gain ever. More...

How'd we get where we got this past weekend?

2008-09-23T12:26:00.000-07:00

The Nashville Business Journal provides a fairly good analysis of how the Middle Tennessee area found itself in search of gas over this past weekend. What it didn't include was why stations did not hike their prices even more in order to manage their respective inventories. They kept prices relatively and, as expected, ran out. Price is a scarcity signal but for some reason Middle Tennessee area retailers were unwilling to hike prices beyond a certain point... and ran out.

WSJ covers gas shortage in Southeast

2008-09-23T12:22:00.000-07:00

Today's WSJ covers the gas situation in Middle Tennessee.

Across the country, gasoline prices remain above pre-hurricane levels but have been dropping. The average price for a gallon of regular gasoline slid a couple of cents on Monday to $3.739, about six cents above pre-Ike levels.
More than 10% of the country's refining capacity is out of commission, with nine refineries still idle after the storm, according to the Department of Energy. More...

However, yesterday saw a dramatic increase in the price of oil, back to the $130 per barrel neighborhood so that as refining capacity comes back on line we shouldn't expect prices at the pump to fall.

U.S. Congressman Zach Wamp in the Huntsville Times

2008-09-23T12:18:00.000-07:00

From transportation to energy, the Tennessee Valley Corridor is providing national leadership to keep America at the forefront of innovation. More...

TDOT and Gov. Bredesen with some green announcements

2008-09-23T12:05:00.000-07:00

Gov. Phil Bredesen announced Monday that 40 retail stations are now offering some combination of biofuels in Tennessee. Statewide there are now 22 retail locations offering E85 (ethanol) and 28 retail locations offering B20 (biodiesel). Many of the pumps were funded through the BioTENN Green Island Corridor grant program...

...TDOT Commissioner Gerald Nicely added, "About 90,000 Tennesseans own flex fuel vehicles and could begin using ethanol today, while B20 can be used in any diesel engine with little to no modification. This is a great time to consider trying biofuels."

E85 means that there the fuel is 85% ethanol and B20 means that fuel is 20% biodiesel.

More here...

Government should inform says Nashville City Paper

2008-09-22T11:56:00.000-07:00

The Nashville City Paper opines on the role of state and local government when there is a gas shortage... they should promulgate information.

Media outlets probably knew as much as the governor and mayor of Nashville and price is supposed to signal scarcity. For some reason the price did not rise so dramatically in Nashville. We suppliers afraid of being accused of price gouging? Read the editorial here

We're not getting any of the increase...

2008-09-22T11:55:00.000-07:00

“I want to stress that not one penny will remain with the Co-op,” Smith said of the rate increase. “All of it will go to the TVA (Tennessee Valley Authority).”
So explained the CEO of an electric co-op in Alabama.

Last week it was Knoxville

2008-09-22T11:45:00.000-07:00

What amazed me in Nashville this weekend was that I stumbled upon a station as it opened up to pump gas. They sold it for $3.99.... until they sold out. Why did gas stations not hike their prices? Were they afraid of being accused and investigated for "gouging?" Apparently Knoxville had higher prices last week which should have worked to ration the scarce supply. It will be interesting to evaluate the nature of this gas price shock as we learn more. I've never seen anything like it. From Sunday's Knoxville News Sentinel:

Gov. Phil Bredesen is taking notice. He's calling on Washington and industry to be more proactive in energy security to ensure that the U.S. energy network isn't vulnerable.
Bredesen expressed a willingness to sit down with refinery, pipeline, wholesale and retail petroleum executives to discuss the ongoing shortage issue in Tennessee, although he said the head of Exxon likely won't care what the governor of Tennessee thinks. More...

Wood replaces LP gas for some in East Tennessee

2008-09-22T11:42:00.000-07:00

Mark England decided last year to switch solely to firewood instead of using propane gas to heat his Claiborne County home. He apparently was part of a trend. More...

Clean energy summit in Knoxville next month

2008-09-22T11:41:00.000-07:00

Tennessee government and business leaders will gather next month in Knoxville for a summit on clean energy technology, the state Department of Economic and Community Development announced. More...

Coal demand makes electricity more expensive

2008-09-22T11:35:00.000-07:00

More coal is being used globally in energy production — especially in China — contributing to rising electric rates here at home, according to the Tennessee Valley Authority. More...

The situation on the ground

2008-09-22T11:34:00.000-07:00

Simulation of gas crisis in Nashville. Warning, contains profanity.

Anyone seen Mad Max around?

2008-09-22T04:41:00.000-07:00

The Tennessean discusses the gas situation in Middle Tennessee. Latest word: Should improve later this week. The Nashville City Paper opines that the state and Metro government should do a better job putting out information.
Economic basics tell us that stations did not raise prices high enough, fast enough. It seems clear that stations are reluctant to increase prices at the pump, better to get a shipment and just sell it out as cars pull in one after the other. If a station jacked up the price to $6.00 /gallon you would hear accusations about gouging, taking advantage of the situation and so on... but they'd get the gas if they wanted it.
Most important lesson: We are more vulnerable than most of us realize to small supply shocks.

Interesting

2008-09-19T04:45:00.008-07:00

House Speaker Nancy Pelosi has recently developed a serious interest in natural gas, even though it is clear she is clueless about it. Never has someone with so little knowledge of an industry been poised to make so much money from it… at least since Hillary Clinton made a fortune from a one-time entry into the cattle futures market. More...

The Tennessee Energy Report is not partisan, but this Op-Ed from a partisan radio talker in Tennessee is interesting.

Clean energy summit

2008-09-19T04:45:00.007-07:00

NASHVILLE, Tenn. – Gov. Phil Bredesen, former Sen. Howard Baker, and the University of Tennessee’s Baker Center for Public Policy will host the first-ever Governor’s Summit on Clean Energy Technology Oct. 14-15 at the Knoxville Convention Center.
The 1½-day summit, sponsored by Oak Ridge National Laboratory and the Tennessee Valley Authority, will be a gathering of thought leaders in business, government, energy and the environment to develop strategies for making Tennessee a leader in the clean-energy technology sector. The keynote speaker on the first day of the conference will be Stefan Jacoby, president and CEO of Volkswagen Group of America which announced plans to build its first U.S. assembly plant in two decades in Chattanooga last July. More...

Some data on electricity production through August

2008-09-19T04:45:00.006-07:00

Coal-fired plants contributed 49.5 percent of the Nation’s electric power, year-to-date. Nuclear plants contributed 19.6 percent, while 19.2 percent was generated at natural gas-fired plants. Of the 1.1 percent generated by petroleum-fired plants, petroleum liquids represented 0.7 percent, with the remainder from petroleum coke (Figure 2). Conventional hydroelectric power provided 7.1 percent of the total, while other renewables (primarily biomass, but also geothermal, solar, and wind) and other miscellaneous energy sources generated the remaining electric power. More...

Anything the French can do...

2008-09-19T04:45:00.005-07:00

The French built 56 nuclear power plants over the course of 15 years. More...

This self-described pro nuclear Democrat has fairly comprehensive, yet understandable, analysis.

Know nuclear

2008-09-19T04:45:00.004-07:00

A Know Nuclear in the Tennessee Valley seminar on nuclear waste and the nuclear industry in Tennessee is scheduled for Saturday Sept. 27 from 11:30 a.m. to 6 p.m. a the Keathley University Center at MTSU. More...

Help when it comes to keeping warm

2008-09-19T04:45:00.003-07:00

The Tennessee Department of Human Services will be increasing the budgets of local social services agencies that provide heating and cooling assistance to low income families. Congress today released $121 Million for the Low Income Home Energy Assistance Program (LIHEAP). Tennessee's share is $1.32 million. More...

This journalist gets it right

2008-09-19T04:45:00.002-07:00

From the Tennessean: Even the healine writer captures the clarity of the reporting, Drivers' rush to fill up caused gas spike

From an interesting source

2008-09-19T04:45:00.001-07:00

Conservation effectively added more "new" energy to the total U.S. supply—between 1970 and 1980—than did oil, coal, nuclear power, hydropower, and natural gas combined . . . according to researchers at Oak Ridge, Tennessee's Institute for Energy Analysis. More...

On the surface impresses me as a dubious claim, or at least a dubious interpretation. Output, as measured in GDP, per energy input has increased. That is how such data should be interpreted. We produce more with the same energy input.

U.S. House passes energy bill

2008-09-19T04:45:00.000-07:00

WASHINGTON — U.S. Rep. John Tanner said energy legislation the House of Representatives passed Tuesday is one of the broadest and most comprehensive efforts to wean the United States off its dependence on foreign oil. It allows more off-shore oil and natural gas drilling and further invests in alternative fuels to help put the nation on a path toward energy independence... More...

Are we happy now that oil prices are falling?

2008-09-17T11:14:00.003-07:00

NEW YORK (AP) — Oil prices extended their steep losses Tuesday, tumbling below $92 a barrel as a worsening economy suggested U.S. energy demand will keep falling despite crude's return to year-ago levels.
Gas prices edged higher at the pump, topping $3.85 a gallon amid the aftermath of Hurricane Ike. However, given crude's continuing slide, retail gas was expected to turn lower within a few weeks. More...

... Crude has fallen $55 — or 37 percent — since shooting above $147 on July 11.

We should expect to see prices at the pump fall quickly.

Less school saves gas

2008-09-17T11:14:00.002-07:00

Research shows that four-day weeks lower absenteeism and save 4 percent in operating costs, including transportation.

That's what some in Memphis are pushing, a four-day week and cite transportation costs as one of the primary drivers of such a policy change.

That's not what we had in mind

2008-09-17T11:14:00.001-07:00

Washington: As the House passed legislation late Tuesday designed to loosen restrictions on offshore oil production, some Senate Republicans were pushing for more drilling as part of a bipartisan energy plan. More...

Grass not corn!

2008-09-17T11:14:00.000-07:00

Corn ethanol mandates are driving up corn prices which is of great concern to those producing meat - cattle, hogs, and chicken. Does Tennessee have the right idea by going with cellulosic ethanol?

Against coal-fired plants

2008-09-16T07:32:00.000-07:00

Some oppose nuclear power expansion while others oppose coal-fired plants. From the Tri-Cities area;

Members of the Virginia State Police, the Wise County Sheriff's Department and St. Paul Police Department work to remove protesters from the gates of Dominion Virginia Power's plant construction site in St. Paul on Monday. Photo courtesy Virginia State Police. More...

From Alabama's Joint Legislative Committee on Energy

2008-09-16T07:29:00.000-07:00

More nuclear power please...

Ike aftermath

2008-09-16T07:24:00.000-07:00

This piece from Houston illustrates why price spikes occur. Do people and public officials who warn against "gouging" really want suppliers to charge low prices even if the result is that there is no product? What good is that?

The result will be at least a temporary return to $4 gasoline before it falls back toward $3 in November and December, said Tom Kloza, chief analyst for the Oil Price Information Service.

More good analysis from CNN... where they explain that it is consumer behavior that drives prices higher, not "gouging."

Unfinished business

2008-09-16T05:25:00.000-07:00

Congress leaving Washington, some to campaign, but some energy business is left on the table.

a. Expeditious development of oil shale in Utah

b. Tightening mine safety with new regulaltions

c. Whether Energy Solutions will be able to import low-level radioactive waste

The waste would be processed in Tennessee but stored eventually in Utah.

You had to know that would get a reaction

2008-09-15T12:01:00.000-07:00

New York Times, PARIS — European legislators said Thursday that government goals for using biofuels should be pared back, prompting the fledgling industry to fire back with a campaign warning that alternatives may be no cleaner. More...

Because TVA hiked rates...

2008-09-15T12:00:00.000-07:00

... Oak Ridge will pay more for electricity

Natioanl Coal polishes the website

2008-09-15T11:57:00.000-07:00

National Coal recently updated its website, http://www.nationalcoal.com/, where visitors can view the Company's most recent presentations, sign-up for news alerts, and read frequently updated information.

Hurricane Ike impact will be short-lived

2008-09-15T11:55:00.000-07:00

Whatever pain is being felt at U.S. gas pumps will likely be a very brief phenomenon, analysts say. The dour drumbeat of the global economy has the vast majority of traders believing the world has lost its appetite for high-priced crude and gasoline. More...

Also, see brief analysis below... not that it will stop public officials from making threats to those who would "gouge."

The energy debate in Washington

2008-09-15T11:49:00.000-07:00

Dems have to balance their objection to drilling as Republicans push hard, backed by public opinion, to expand drilling. More...

Strong demand has coal surging

2008-09-15T11:34:00.000-07:00

Knox News: ...King Coal has made a remarkable recovery in East Tennessee since industry prices hit rock bottom in 2000 at $25 a ton, making mining too expensive for all but the operators with the deepest wells and pockets...

...more job postings are appearing seeking miners; and stock prices of major coal companies are 1,000 percent higher than eight years ago.

...The U.S. Energy Information Administration reports that China and India are a leading cause for rising coal consumption and will continue that role for years as they emerge into developed countries. China also has shifted from being a major exporter of coal into a major importer as its demand outpaces its supply.

Volkswagon should have no problem getting air permits for proposed plant

2008-09-15T11:32:00.000-07:00

Chattanooga Times Free Press: TVA is installing scrubbers at its Bull Run, Kingsport and John Sevier plants in East Tennessee over the next five years as part of a $3 billion program to comply with the Clean Air Interstate Rules.
.... Sen. Alexander, who is chairman of the TVA congressional caucus, said he is glad TVA has made that commitment. But he said TVA and other utility officials facing higher costs for fuel and new plant construction may be tempted to scale back their pollution controls without the EPA mandate.

Coming to a legislature near ours

2008-09-15T11:25:00.000-07:00

Illinois is one of the nation’s largest producers of nuclear power with six plants and 11 reactors, according to the U.S. Energy Information Administration. Nuclear and coal are about evenly split in producing 96 percent of the state’s electricity.

And, there will be another attempt made in the state legislature to lift the 21-year moratorium on construction of nuclear plants. Read it here...

Maybe some media will read this analysis

2008-09-15T11:15:00.000-07:00

Raising prices in this sort of situation prolongs gasoline supplies, and
ensures that those who desperately need gasoline can get it. Failure to raise
prices in this sort of situation can mean that consumption will continue on as
normal, which will run out supplies even more quickly. Or worse, if people think
there are going to be gasoline shortages, and suppliers don't raise prices (or
ration), then they may find that hoarders run them out of gas even faster than
normal. Given a choice, I think most people would prefer to have some gasoline
at a much higher price rather than have prices stay low, but supplies run
out.

That's a pretty good description, in lay terms, of why gas prices rose late last week. In Middle Tennessee there was a spike in demand by Thursday night. Prices began to rise just as theory suggests. Why must we endure poor analysis each and every time this hurricane phenomenon plays out?

TVA's Bellefonte application to the Nuclear Regulatory Commission

2008-09-15T11:04:00.000-07:00

Chattanooga Times Free Press: TVA’s application to build new nuclear reactors in North Alabama was rendered “fatally deficient” last month when the utility resurrected plans to also finish the two original nuclear units at the same site, three environmental groups said Friday...

... But TVA said its application for the new reactors met all environmental standards and was not significantly altered by its announcement in August of plans to possibly resurrect the construction permit for two previously scrapped reactors at Bellefonte. More...

Opposition to finishing the nuclear reactors

2008-09-15T10:55:00.000-07:00

HOLLYWOOD, Ala. -
Three groups are trying block plans to renew work on TVA's unfinished Bellefonte Nuclear Plant in northeast Alabama. More...

Gil Frances, a TVA spokesman, reacts (The Huntsville Times):

The utility "will respond to the (groups') contentions in detail according to the hearing process," he said.

Tennesseans should expect...

2008-09-15T05:39:00.001-07:00

... higher costs when it comes to heating their homes this winter. Natural gas prices are up a bit.

Ask the economist

2008-09-15T05:27:00.000-07:00

Good lesson in basic economics here regarding the surge in gasoline prices. Prices are determined by supply and demand not by the cost of production.

To recycle or not

2008-09-12T11:49:00.000-07:00

I missed this editorial last month from the Roanoke Times but they present the nuclear recycling issue quite well. First thing to understand is, as the op-ed says,

Reprocessing spent fuel rods can recover 96 percent of the uranium for use in new fuel rods.

OK, so less space is needed to store hazardous waste and less uranium needs to be mined. a downside?

Well, you read the op-ed. It will be interesting to see how Sen. Webb (D-Virginia) comes down on this. He is, as the Times states, an intelligent and thoughtful, man.

Tightening up on coal-fired plants

2008-09-12T11:41:00.000-07:00

Clean air is good for the health of Tennesseans, and it's also good for their economy, U.S. Sen. Lamar Alexander, R-Tenn., said Thursday.

So said the senator before discussing his plan to introduce federal legislation to tighten emission standards of coal-fired power plants. Read it here...

Good Bloomberg piece on the ethanol market

2008-09-12T11:20:00.000-07:00

``This is a major bump in the road,'' says Walker Filbert, president of Heartland Ethanol LLC in Knoxville, Tennessee, which abandoned plans to build seven plants in Illinois.

What's he talking about?

The particulars in the ethanol market. Corn prices have risen dramatically - 58 percent in the past year, to $5.37 a bushel (one bushel of corn makes about 2.75 gallons of ethanol. That squeezes producer profit not to mention the dramatice impact on food producers who have formed a coalition - Food Before Fuel - that seeks to modify federal ethanol mandates. Currently ethanol plants consume abuot a third of corn output. President Bush and Sen. Obama tend to favor ethanol subsidies while McCain has a record of oppostion. From the article:

Ethanol may account for 20 percent of the gain in the rate of U.S. food inflation, says Ephraim Leibtag, a USDA economist. U.S. food prices may climb 6 percent this year, the most since 1980, the department estimates.

Then there is the capactiy issue. There are currently 168 ethanol plants in operation. Again from the article:

The 168 plants had capacity for 9.96 billion gallons as of Aug. 26, almost 1 billion more than the U.S. requires this year, the Washington trade group Renewable Fuels Association says. Another 43 plants scheduled to be built or expanded would raise capacity to 13.8 billion gallons. Most make ethanol from corn.

TVA rated by Site Selection

2008-09-12T11:15:00.000-07:00

Chattanooga Times Free Press: Site Selection magazine announced today that it has named the Tennessee Valley Authority as one of its top utilities for economic development for the third consecutive year.

Explained the editor of Site Selection Editor Mark Arend... "Utilities play a key role as participants in the economic development efforts of cities, regions and all areas working to improve their local business climate."

The planned $1.3 billion and $1 billion investments by the automotive sector in Tupelo, MS and Chattanooga were mentioned. More...

Electricity prices rose because coal and natural gas prices rose

2008-09-12T10:59:00.000-07:00

Conservation and more nuclear power will enable TVA to keep rates low... says TVA in the wake of their largest rate hike in 30 years.

Read it here...

Conservation: TVA is working to slow the current rate of growth in the region's power demand by providing opportunities for residential, business and industrial consumer groups to use energy more efficiently. In the short term, TVA's goal is to reduce the growth in peak demand by up to 1,400 megawatts -- more than the amount generated by one nuclear power unit -- by the end of the 2012 fiscal year.

Nuclear: The utility is also emphasizing nuclear power. Last year it spent $1.8 billion to restart Browns Ferry Unit 1, which added 1,000 megawatts to the system. It also plans in 2010 to increase production at Browns Ferry by 300 megawatts. By 2013, it expects to expand generating capacity by 1,100 megawatts with Watts Bar Nuclear Unit 2.

What is missed often in such analysis is that higher prices are desirable with respect to stimulating conservation efforts.

Yes, but what do the corn farmers think?

2008-09-12T10:53:00.000-07:00

GREELEY, Colo. -- When it comes to alternative fuels, a University of Northern Colorado professor says weeds and algae should be in our gas tanks, not corn. More...

Kentucky coal keeps Kentucky electricity cheap

2008-09-12T03:57:00.000-07:00

Cheaper than elsewhere anyway. Read the piece in the Tennessean here. The coal doesn't have to be shipped very far. Next month, when rate increases kick in, Tennesseans, reliant on TVA, will pay about 25% more than those in Kentucky who get their power from two private utilities. 62, 28, and 10...

TVA's power sources are 62 percent coal. The largest chunk is mined in
Kentucky, followed by Illinois, Utah and then Colorado. Another 28 percent comes
from nuclear power, which has relatively low fuel costs. About 10
percent is
generated at hydroelectric dams, though drought has cut into
this.
95 and 5, those are the numbers for Kentucky...

To Tennessee's north, Louisville Gas and Electric Company and Kentucky Utilities
Company are owned by the German company E.ON and serve about 1.2 million
customers.
The mix of sources is 95 percent coal, some natural gas and a
touch of hydroelectric.

Nationally, about 50% of electricity is generated by coal-fired plants and 20% comes from natural gas. Some comparisons in cost from the article...

TVA distributor charges for residential electric service will run about
$106 for 1,000 kilowatt hours as of Oct. 1. The two major Kentucky utilities
will be charging about $80 for that same amount, according to TVA
information.
Residents served by two large Texas utilities that have relied
heavily on natural gas will pay more than double what Kentucky residents
pay.
In California's Sacramento Municipal Utility District, residents will
pay $110, just $4 more than TVA customers, for 1,000 kilowatt hours, according
to SMUD information. Almost half comes from hydroelectric, solar and other
renewable resources, with the rest largely from natural gas.

Not so fast says Alabama PSC

2008-09-11T05:26:00.000-07:00

Utility regulators said Tuesday they hope to scale back Alabama Power Co.'s request for a record rate hike of more than 14 percent for homes and nearly 25 percent for industries. More...

Nuclear power expanding in South Florida...

2008-09-11T04:44:00.000-07:00

... but not without being challenged. In the case of Florida Power and Light (FPL) the challenge is on cost.

A Florida Public Service Commission hearing in Tallahassee today is one of
several that are part of an annual review of costs associated with expanding
nuclear plants at Turkey Point near Miami
and in St. Lucie County and building two new reactors at Turkey Point. The
commission will vote this fall on whether to allow FPL to pass the costs so far
— $258 million — to customers starting in January. That would add more than
$2.55 to an average residential customer's monthly bill, bringing it to about
$119.41.

A spokesman for FPL says the problem is that there aren't many contractors with the expertise to work in this area...

With the exception of a Tennessee project in 1982, "there hasn't been a nuclear plant built in this country in over 30 years. In fact, this is one of the biggest challenges to a nuclear renaissance in this country," according to FPL spokesman Mayco Villafana. "Despite these challenges, nuclear energy continues to deliver significant savings to customers relative to gas and oil plants."

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The pilot plant that will produce cellulosic ethanol is one hundreth the size of the envisioned commercial plants

2008-09-11T04:12:00.000-07:00

The proposed cellulosic ethanol plant in Vonore, Tn (south and west of Knoxville) is a partnership between the University of Tennessee and DuPont Danisco. In the near term it means that 5,000 acres of switchgrass will have to be grown in the vicinity of the plant in order to produce 250,000 gallons of cellulosic ethanol per year. That's just less than 6,000 barrels in a nation that consumes about 20 million bpd of petroleum. If it works, if the conversion process - getting the sugar out of the biomass - becomes more efficient, and sufficient quantities of switchgrass can be produced in the region... then commercial cellulosic plants or biorefineries - 25 million gallons per year would be built in the next five years. Tennessee would need more than a few in order to produce the goal of 500 million gallons per year by 2022. In short the pilot plant in Vonore is one hundreth the size of the envisioned commercial biorefinery.

Kelly Tiller is the UT economist who has become CEO of Genera Energy, UT's initiative to make breakthroughs in biofuels.

“We know how to do it [i.e. make cellulosic ethanol], but there has to be a more efficient way, and the pilot plant is designed to get us there,” says Kelly Tiller, who has emerged as UT’s point person on the project. Tiller is a 39-year-old assistant professor of agricultural economics who recently gained the impressive title of CEO of Genera Energy, a company UT formed to spearhead its biofuels initiative. More...

Great work if you can get it

2008-09-10T05:45:00.000-07:00

You mean I don't have to harvest these trees in order to make money from them? That's right. Keep 'em right there sucking up carbon dioxide.

The Tennessee Valley Authority, which operates a coal-burning power plant in Colbert County, is working to reduce its carbon dioxide emissions... and paying for trees to stay put. More...

The effort to process radioactive material safely

2008-09-10T05:40:00.000-07:00

The EnergySolutions proposal to import tons of Italian nuclear waste has generated lots of attention, most of it negative. The Nuclear Regulatory Commission received about 2,900 comments, most of them against the project. If the import application is approved, the company plans to process the radioactive materials in Oak Ridge before shipping the residues and byproducts to Utah for disposal. More...

Coalition pushes pollution tax to subsidize efficiency improvements

2008-09-10T05:33:00.000-07:00

Tennessean: Tennessee could get nearly 45,000 new jobs over the next two years under a "Green Recovery" program proposed by a coalition of environmental groups that would use taxes collected from air polluters to fund projects to increase energy efficiency.

The state's share would be part of a $100 billion plan for the entire nation that would create up to two million jobs, primarily in construction and manufacturing, to retrofit public buildings with "state of the art energy equipment," improve public transportation, set up a "smart electricity grid," and develop alternative sources of energy such as wind, solar and advanced biofuels. More...

City Paper's take...

Improving air-quality by addressing the operation of ports

2008-09-10T04:09:00.000-07:00

Newsweek: ... cleaner fuels, replacing old polluting trucks with electric trucks, plug-in ships, and even, later this year, the introduction of the world's first hybrid tugboat, dubbed a "Prius of the Seas." More...

Press release from the Nuclear Regulatory Commission

2008-09-10T03:54:00.000-07:00

The Nuclear Regulatory Commission has formally docketed the Department of Energy’s license application for the proposed high-level nuclear waste repository at Yucca Mountain, Nev. The agency staff has also recommended that the Commission adopt, with further supplementation, DOE’s Environmental Impact Statement for the repository project.

The decision to docket the application follows the NRC staff’s determination that the application, submitted June 3, is sufficiently complete for the staff to begin its full technical review. Docketing the application does not indicate whether the Commission will approve or reject the construction authorization for the repository, nor does it preclude the Commission or the agency staff from requesting additional information from DOE during the course of its comprehensive technical review. More...

The labor market

2008-09-09T05:39:00.001-07:00

Weak demand for labor except in gas, oil, and mining...

Drill Baby Drill... Republicans stay with the full-court press

2008-09-09T05:34:00.000-07:00

Congress returns and Republicans push for more drilling at a press conference:

Marsha Blackburn of Tennessee also stressed the economic importance of drilling, complaining that "the family budget can only take so much." Boehner gave the environmentally friendly an excuse to hop on the "drill now" bandwagon, claiming oil revenues mean, "the more drilling, the more renewables investment." More...

Oil falls to five month low. Oil ministers in Vienna.

2008-09-09T04:33:00.000-07:00

LONDON (AFP) - Oil prices slumped close to 101 dollars on Tuesday, their lowest level since the start of April, as the market waited to see whether OPEC would announce a cut in output levels later in the day. More...

Fight over coal-fired plant in Nevada

2008-09-09T04:21:00.000-07:00

CARSON CITY, Nev. (AP) - The attorney general's office and an environmental group argue that it's time for Nevada Power Co. to completely review a proposed $5 billion coal-fired power project near Ely and other power alternatives. More...

A barge port on the Cumberland near Clarksville

2008-09-09T04:16:00.000-07:00

A planned river-to-road fuel storage and barge transportation terminal for the Cumberland River in Clarksville, originally foretold in May, still awaits government permitting for river navigation and potential air pollution. More...

Not sure that's the recognition you'd want

2008-09-08T04:43:00.000-07:00

From the Knox News Sentinel: According to a 2008 Asthma and Allergy Foundation report, Knoxville is the asthma capital of the world - in great measure due to the poor air quality in East Tennessee. Ozone and particulate matter are the two major agents that spark bad-air days in the area. Sources like automobiles and coal-fired power plants - which spew sulfates, nitrates, carbon, dust and smoke - combine with heat and sunlight to produce pollution in the form of ground-level ozone. That's why the warmer months of May through September generally produce the worst air quality in East Tennessee. More...

Oil

2008-09-08T04:33:00.000-07:00

$105 per barrel on Friday, a five month low, but Hurricane Ike is pushing prices up due to expectations of supply disruptions in Gulf of Mexico. More...

Action should be taken at state level?

2008-09-08T04:19:00.000-07:00

If Tennessee tightens tailpipe emissions regs and no one else does who will benefit? State action to address climate change is a game-theory trap. This writer from the Southern Alliance for Clean Energy argues otherwise...

Export demand driving coal price increases in U.S.

2008-09-08T04:17:00.000-07:00

Pittsburgh Tribune Review: The volume of U.S. coal exports -- about 80 million to 85 million tons -- is small compared to total coal production of about 1.2 billion tons. Exports, though, have forced local utilities to compete with Europe and Asia for coal, Hoffman said.
"It's less than 10 percent (of the total), but it's setting the price," he said. More...

Heating bills for upper midwest expected to rise 27%

2008-09-08T04:14:00.000-07:00

From the article: In a region comprising Wisconsin, Illinios, Ohio, Indiana and Michigan, the average household will be expected to pay between $2,700 and $3,500 from October through March, Eisenberg said. The amount depends on the type of energy used to heat a person's home, with fuel- and oil-powered heat the highest at about $3,500. More...

Don't use corn in gas tanks

2008-09-08T04:10:00.000-07:00

From the article: Some experts say the food-based ethanol demand for biofuels is outpacing supply, which translates to more expensive food.

Since 2001, corn grown to produce ethanol in the United States has increased by 300 percent. And the price of a bushel of corn has risen from about $1.50 in 2001 to about $5 or $6 today.

The professor says other plants should be developed...

Applied Energy Conservation Systems of Chattanooga

2008-09-08T04:02:00.000-07:00

An environmentalist has found a career as a consultant to help businesses conserve electricity and add to the bottom line... Read about Applied Energy Conservation Systems here...

EGP plant stimulates economy in NW Tennessee

2008-09-08T03:57:00.000-07:00

Memphis Business Journal: Ethanol Grain Processors LLC is preparing to open its $160 million corn-to-biofuel conversion plant near Obion, Tenn. More...

From July but some good data on coal

2008-09-05T04:40:00.000-07:00

Major demographic trends point to coal's continued ascendancy. It might pay off to dig in with both hands and get your fingernails dirty. More...

Firms adjusted

2008-09-05T04:20:00.000-07:00

Interesting piece here from the AP. The conventional wisdom was that if the price per barrel of oil got over $100 per barrel it would be devastating. It hurt but firms adjusted.

Going down?

2008-09-05T04:14:00.000-07:00

Oil will fall to less than $100 per barrel? That's where his money is going.

NC State to lead national research center

2008-09-05T04:08:00.000-07:00

The National Science Foundation on Thursday selected North Carolina State University to lead a national research center that aims to revolutionize the nation’s power grid and speed renewable electric-energy technologies into every home and business. More...

From Rural Electric Cooperatives in Indianapolis

2008-09-05T03:52:00.000-07:00

Rural electricity co-ops rely on coal, wonder where more power will come from

The Motley Fool says

2008-09-05T03:47:00.000-07:00

When you're not, you're notEvergreen Energy (NYSE: EEE) and James River Coal (Nasdaq: JRCC) were two leading coal stocks down last week as recent correlation between coal stock prices and oil prices helped knock the sector back. Yet with 27% of the world's coal deposits here in the U.S. and the price of coal being much cheaper than other forms of energy, it's unlikely that coal will remain a four-letter word for long.

At the convention this week and in Washington next week the GOP will push hard for expanded drilling

2008-09-04T04:45:00.000-07:00

Congress is poised for a high-stakes showdown over drilling as lawmakers return to work next week. More...

Rural co-ops plead for more power

2008-09-04T04:43:00.000-07:00

Rural electric cooperatives are meeting in Indianapolis to discuss a looming energy crisis. More...

From Denver to Minneapolis, coal industry reps now infoming the other side

2008-09-04T04:39:00.000-07:00

MINNEAPOLIS – The Republican Party of Kentucky’s Tuesday morning delegation breakfast featured appearances and brief remarks from two representatives of the coal industry, a major economic player in Kentucky and a source of controversy for many who say the industry damages the environment. More...

The news from Webster County, Kentucky

2008-09-04T04:28:00.000-07:00

More coal mining investment / jobs for Webster County, Kentucky?

Weaker than expected demand for oil

2008-09-03T04:33:00.000-07:00

Oil prices dipped to near $108 a barrel Wednesday as the dollar continued to strengthen and attention shifted to concerns over slowing global demand for crude after Hurricane Gustav left oil installations in the Gulf of Mexico region largely undamaged. More...

TVA changes direction on security at nuke facilities

2008-09-03T04:31:00.000-07:00

The Tennessee Valley Authority plans to drop the privately contracted security guard service at its three nuclear power plants in favor of an in-house force, officials announced Tuesday. More...

Gustav's wake

2008-09-03T04:25:00.000-07:00

The Gulf accounts for about 25 percent of domestic oil production and 15 percent of natural gas output. So what did Gustav do?

Bellefonte

2008-09-03T04:22:00.000-07:00

TVA has asked the federal Nuclear Regulatory Commission to reissue construction permits for two partly built nuclear reactors that have lain dormant for about two decades at the Bellefonte site in northeastern Alabama. More...