Will the increased installation of wind turbines and solar panels increase electric utility rates in the future? That may sound crazy, but according to a report released by the Edison Electric Institute, it appears possible. The report that was released in January 2013 addresses the many challenges the electricity industry is facing in the coming decades and how to resolve their fight to stay in business. Here is the link:

http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf

Since we were told that climate change is happening (sic) and that coal is no longer a viable option for producing power, we are told we have to shut down those dirty coal generation plants. And of course don’t forget that nuclear power now has a black eye. How long will it be until we have to start dismantling these enviromental time bombs? Shouldn’t wind and solar power help the power companies offset this potential supply deficit problem?

Well, apparently it’s not the lower supply available on the grid by shutting down these reliable production resources that has the power companies worried. It appears their problems began with better energy efficiency both in the business and residential sectors over the last few decades. Then add to it the amount of electricity demand that has been shrinking since the economy has slowed down since 2008. With just these 2 factors considered, energy demand has declined as well. So shouldn’t things balance out in the long run? If more wind and solar generation is added to the grid, shouldn’t this help stabilize the grid as more and more of these renewables come on line?

According to the report, the installation by the private sector installing all this wind and solar equipment and adding supply to the grid is also decreasing the amount of what once were rate payers to the electric companies. They fear that the more ratepayers that make their homes and businesses more energy efficient and install renewable energy, the more revenue they will loose as time goes on. The impending shortfall they anticipate as a result means they will have to charge those who aren’t moving to alternatives more to make up the difference in lost revenue. The report appears to be signaling a need to add more tarrifs and other rate fees to remaining electric company customers to offset their losses. Those who are producing their own power who are net-metered on their grid should also pay more for the privilege of adding more to the system or sell the excess generated for wholesale and buy if needed at the regular retail rate.

Actually, if you boil it down, you would think that since renewables are adding more supply to the impending generation shortages, it would provide more relief to a stressed out grid if demand should stay the same or increase in the future. This alone should be our real concern, It appears it’s not really about lost supply from the grid the electric companies are really concerned about.  According to the report, no matter how the electric flows and in what amount, they still want to collect the same amount of revenue or more whether you are a producer or an end user.