Electric choice helps smart-grid conservation
Today's column is on proposed Maryland electricity re-regulation.
Maryland is doing it again: rushing into politically fashionable energy legislation that could end up generating a nasty shock.Policymakers are talking about canceling kilowatt shopping even for commercial and industrial customers. They're setting up everybody to pay for expensive, new generation plants.
What, exactly, is the hurry, except to appear to be doing "something" about high electricity prices?
One reason I'm uncomfortable with trashing the potential ability of consumers to choose their electricity vendor is that it could harm some of the most promising initiatives to conserve energy. We are wasting energy now not only because our homes are underinsulated but also because our electric meters are too dumb to know not to buy the most expensive kilowatts. Smart meters, effective time-of-day pricing (nighttime juice should cost much less for households than it does now) and other measures could dramatically cut down on kilowatt use, pollution and the need for new generation.
Conserving the most electricity with smart meters needs each user, including most/many households, to make their own decisions about usage and to see the savings in their bills that result from those decisions. If BGE buys kilowatts in bulk and charges everybody the same price, this won't happen. Yes, there are complications. Numerous households won't want to deal with programming thermostats and picking vendors. You need to worry about low-income buyers. But if we're serious about conserving, smart meters and smart grids are something to think about.
Blogger Lynn Kiesling gives a taste of what might happen:
Say, for example, you are on the train to work, and you get a SMS notification that due to unexpected weather, there will be a higher-than-normal electricity price in the 9:00-10:00 hour. You may have already programmed your devices to respond to price signals, but what if the price is high enough that you want to change your settings? You can log in to your HAN from your mobile device, or from your computer at work, and change the device settings in the home through the web portal.
There is much more on her blog, Knowledge Problem.
Comments
Remind me again what my choices are for electricity vendor.
Posted by: Anonymous | March 12, 2009 8:58 AM
I agree the Policymakers should not rush this bill through, keep in mind this the leaders with the exception of the Governor are pretty much the same brain surgeons who pushed through deregulation and a unfunded Thorton mandate.
We need to build more power plants preferable not coal plants. The PSC should encourage BG&E to build a wind power station offshore like Blue Water wind is doing offshore in DE. Also with several rivers leading into the bay is building a hydroelectric dam a long term option?
Sadly there is not a lot we can do about the power bills right now, perhaps the "brain surgeons" who are still in office that voted for deregulation can help those who are in danger of being cut off by paying the delinquent power bills. Since it was their recklessness and lack of thinking what would happen in the worst case that has caused the current situation.
Posted by: Bryan | March 13, 2009 7:59 PM
Anon: Check out WGES. They are a little cheaper than BGE. The rest are jokes.
Jay: I already have a programmable thermostat, budget billing, time-of-use billing, & a gizmo on my outdoor AC unit that cycles it on and off.
Posted by: MikeA | March 14, 2009 5:31 PM
Jay, do you know what the summer rates will be? I've looked on the BGE website, I'm thinking about signing to WGES for a year.
Posted by: peter | March 19, 2009 8:20 AM
BGE's residential rates this summer are around .118/kWh, .1083 from September through May 2011. (Here's the link: http://www.bge.com/vcmfiles/BGE/Files/Rates%20and%20Tariffs/POLR%20Rates/POLR_Rates_PTC_MiscCharges.pdf).
There are definitely savings to be had by switching, and if you sign up now, you will see the lower rate on your bill on your September meter read bill (around the end of September or October).
WGES (http://www.wges.com/) is offering .097 for 1 & 2 year agreements, & .098 for 3. Wind energy is, of course, more.
If you don't like contracts, call Dominion by July 31st for their fixed.099/kWh offer, good through December 2010 (1-888-216-3718).
Direct Energy has been calling residential customers with a variable rate offer and no contract. I personally do not like variable no contract deals because the supplier can charge you anything they want.
Viridian Energy is a multi level marketing residential energy supplier offering a no contract variable rate 20% wind power product.
Clean Currents offers 1 & 2 year 50% wind power @ .101 fixed 100% @ .106.
Posted by: Renee | July 23, 2010 9:34 AM
Renee,
There are several errors your post.
1. There are schedules which adjust the rate on each monthly bill, so the BGE rate could be lower. Further, it is not 10.83 but 10.083--your number is off by nearly 8%!! The difference between 9.7 and 10.083 is less than 4% and BGE might even dip lower with rider adjustments.
2. Variable m2m contracts do not necessarily entail changes in supplier margins if the margins are clearly contracted and transparent.
3. The green options do not have a nodal setup for green power, they only entail REC's.
Unless you are convinced that rates will skyrocket in the next year, you're probably best not going with a contract full of nefarious penalties to save 4% or less.
Posted by: tim | July 23, 2010 5:16 PM