We all watch the Price Line adds on TV and we all understand why you can get hotel rooms for less on Price Line. It is because the hotels want to get what they can for rooms that, other wise, would not be rented for the night. This is extra profit that they would not have gotten. Now exactly how is this related to Green Energy. Well, as you might expect, I have researched the situation and have the facts.
Now, you can't just call up a hotel any time and expect them to give you their best rate. That is because they are in business to make a profit and they need to get as much for a room as they can. Sounds reasonable to me. The kicker comes in when they have tried up to the last minute to rent rooms and they still have a few left. Now what should they do? Should they hold out until for the full price or accept a lower rate for the last minute room rental. If they go for the full price, they will lose the customer, but if they make a last minute deal, they will at least get some money for a room that would have been vacant. Logical so far? Now how about Green Energy?
As it turns out Green Energy is like those rooms that no one wants to rent because they can not just call up at the spur of the moment and get a good price. That is because most Green Energy is not available on a any time call up basis. If the wind is not blowing, no electricity. If the sun is not shining, no electricity. People can not depend on Green Energy being available when they want it. How would you like to be in a hospital having surgery done and the Green Energy would go off because the Sun went behind a cloud? You would expect full time power and you would expect to pay more for full time power compared to Green Energy that is only available when conditions are right. Seems simple doesn't it?
I blogged on this one before, but we all know that you can get your power company to sell you electricity for half price if you will let them cut you off during peak demand periods. That means that if full time power is sold at $0.15/KWH, then interuptable is only worth $0.075/KWH. Follow that? This means that Green Energy is only worth $0.075/KWH. Now that is retail, but power companies can buy interuptable power for much less too. They by full time power for about $0.025/KWH from the coal fired power plant, but they could buy interuptable or Price Line type power for about $0.015/KWH. Why is this so important? It is because the public is being screwed and made fools by Obama and the media. Here is how.
There is a law in many states that require power companies to buy Green Energy at the full time available retail price of $0.15/KWH when they could buy the same power like Price Line for only $0.015/KWH. The power companies pass along the extra cost to all their customers and since Green Energy is less than 1% of their power purchases, you don't seen the impact. Magic! When you see a private company building wind mills, they can show that they make a profit and they do. Who would not if they could sell Green Energy for 10 time what it is worth. Think about Price Line. What they are doing is logical, but what is happening with Green Energy is not! The general public is being screwed and they do not even know it.
I read an article about Green Energy and they said that OHM's law was too complex for the average person to understand so they recommended that people (voter) go on blind faith. How stupid is that? If you do not know and understand OHM's Law, you should not be allowed to vote. That is my opinion. OHM's law is one of the most simple concepts and all you need to know to understand it is 4th grade math. Maybe it is 4th grade math that is our problem.