10:15 Hobson: We agree with the DOE that the potential for wind energy and solar energy in the Southeast are limited. Solar will not be a large source. Landfill methane will be a good source for small-scale generation. We think that a national one-size-fits-all standard is bad. We must either buy credits or pay an alternative compliance payment to the government. It essentially imposes a tax on resource-poor areas. We’ve assessed that 15% impact on our customers. It would be a billion dollars a year. There are 25 states with renewable portfolio standards. Not one of the 25 states’s standards is consistent with the proposed national standard. We believe federal funding and incentives with local standards is the best way.
10:20 Reedy: “I’d put my money on the sun.” That was Thomas Edison in 1931. The president’s vision for the DOE’s solar initiative lies behind the forces under discussion today. I spent most of my career with utilities. Ultimately utilities make decisions all about risk. How can inherently risky ventures such as steam-powered coal plants work? They are very complicated, have unreliable fuel sources, and offer environmental risks. Renewables will lower the risk.
- Economic feasibility: PV systems without financial incentives are projected to cost 9 cents per kilowatt hour by 2020 instead of 31 cents now. Florida consumers pay 12 cents now. By 2020 they can be expected to pay 18 cents per hour. One major frustration to the solar industry is comparing the base rate of convention to the peak rate of solar.
20/09/2007 at 09:00AM