Up, Up, and Away - Rates Will Rise
There is a cost to replacing low cost energy with untested technology. Consumer's in Colorado will get a taste of that in the coming years as XCEL Energy is set to raise rates and decrease natural gas usage in return to a heavier reliance on electricity. So how is electricity generated?
In Colorado, of the state's electrical generation capacity need, about half comes from coal-fired power plants, one-third from natural gas, and about one-fifth from wind power of the needed capacity. So what form of energy is going to fill that gap once one-third of the natural gas is no longer there?
The cost of this will be a 1.1% rise in electricity rates and a 7% rise in natural gas rates. If you want less of something, tax it, or raise the cost of the resource. Here is a quote from PUC Chairman Eric Blank : “The electric transition took 25 years, I am worried we are trying to jam too much into five years. … I just don’t want to see rates double in 10 years.”
Senate Bill 264 is forcing companies to comply with laws written by legislators who probably have no understanding of the complexity of generating electricity. Do they understand that just because it is legislated doesn't mean the physics can support an all-electric society? My guess is no.
"Xcel Energy said in a filing that with a 2.5% cap it could only raise $34 million a year and cut emission in 2028 by only a fifth of what is needed to reach the 2030 target."
They want to replace furnaces in Colorado with heat pumps, which they say are more efficient, cost less, and are easy to install, but how do they work and are they viable in cold climates? We'll see, but here is a quote from Consumer Reports, "air-source heat pumps—the most common type because they’re easy to install and cost less than ground-source heat pumps—don’t make sense in places where temperatures drop below freezing. That’s because heat pumps work by absorbing free heat from the air outside your home and then transferring it inside. This is more difficult when the temperatures are lower because they’ll struggle to keep your house comfortable even in a mild cold snap, the story goes, and they won’t run efficiently in that kind of weather anyway. If you want high-efficiency electric heating in a cold climate, experts say you’ll need an expensive, hard-to-install ground-source heat pump, which absorbs heat from underground."
Once again, government is telling you what to do and forcing you to comply, which will only increase your costs and make your life more difficult.
|