Category Archives: Labor & workforce

NRDC Says Clean Power Plan Benefits Virginia

coal plant burnsBy Peter Galuszka

In a sweeping contradiction of the positions of Dominion Virginia Power and assorted politicians and regulators, the National Resources Defense Council has issued a report saying that Virginia will benefit by following a proposed federal plan to cut carbon dioxide.

The U.S. Environmental Protection Administration has put forth a proposed plan for comment that would cut carbon dioxide pollution intensity — measured in pounds per megawatt hour of electricity– in the state by 38 percent by 2030.

The draft plan brought on protests from Dominion, the State Corporation Commission, Gov. Terry McAuliffe, The Virginia Department of Environmental Quality and many legislators who say compliance with the plan would cost ratepayers an extra $5 billion to $6 billion in rate hikes and force the closure of some coal-fired plants.

The situation was considered so dire that Dominion convinced the General Assembly to pass a bill letting it freeze its rate base and avoid audits by the SCC for five years.

Reading the NRDC document is like reading an instruction manual from another planet. The key point:

“The Commonwealth is already 80 percent on the way toward achieving the EPA Clean Power Plan’s carbon reduction for the state,” it says. The remaining 20 percent goal could be reached by pressing on with renewable energy and energy efficiency while developing a robust new work force that would total about 5,600 “and the state’s households and businesses would save $1 billion on their electric bills by 2020.”

One reason for the progress in achieving the goal is that Dominion has converted coal plants to natural gas or had announced plans to shut down some aging coal plants .

The NDRC notes that the Clean Power Plan does not specifically target coal-fired plants or other fossil fuel units and leaves it to the utilities to choose how they want to achieve the goals. Among ways to do this are to make coal plants more efficient, use natural gas plants more effectively by switching them on before coal plants and increasing renewables and efficiency.

Deutsche Bank reports that by 2016, solar power (which only just beginning to be tapped) will be cheaper than the average retail power, the report says.

The NRDC report brings up another topic that rarely is discussed in Virginia. Switching to cleaner power can “usher in climate and health benefits worth an estimated $55 billion to $93 billion by 2030. This could prevent from 2,700 to 6,600 premature deaths — a topic rarely broached in Richmond.

As for concerns of base loaded reliability, the report says that PJM, the regional grid to which Virginia belongs, can kick in during a major and unexpected plant outage with 3,350 megawatts of backup electricity.

Another interesting fact: NDRC reports that coal’s share of Virginia’s generation is now only about 20 percent. Dominion had reported it as being up to 49 percent of its mix a few years back. It is hard to understand given that Dominion has been shutting down coal-plants that are 50 or 60 years old. Opponents of the EPA’s new rules claim the plants are being shut down because of EPA’s “War on Coal” but simple age is the more logical reason.

In any event, it is amazing that hardly any of the points raised by NRDC were part of the harried discussion against the proposed Clean Power Plan and Dominion’s almost hysterical need for rate freezes and freedom from audits so it could have time assessing just how damaging the proposed Clean Power Plan would be.

What’s needed is an honest and transparent discussion and review of what the plan really is, how much it will really cost and how its goals can be achieved. That debate cannot be held captive by bankrolled legislators and regulators bullied by utilities.

A New, Improved Ken Cuccinelli?

ken-cuccinelliBy Peter Galuszka

Is one-time conservative firebrand Ken Cuccinelli undergoing a makeover?

The hard line former Virginia attorney general who lost a bitter gubernatorial race to Terry McAuliffe in 2013 is now helping run an oyster farm and sounding warning alarms about a rising police state.

This is remarkable switch from the man who battled a climatologist in court over global warming; tried to prevent children of illegal immigrants born in this country from getting automatic citizenship; schemed to shut down legal abortion clinics; tried to keep legal protection away from state gay employees; and wanted to arm Medicaid investigators with handguns.

Yet on March 31, Cuccinelli was the co-author with Claire Guthrie Gastanaga, executive director of the American Civil Liberties Union of Virginia of an opinion column in the Richmond Times Dispatch. Their piece pushes bipartisan bills passed by the General Assembly that would limit the use of drones and electronic devices to read and record car license plate numbers called license plate readers or LPRs.

Cuccinelli and Gastanaga say that McAuliffe may amend the bills in ways that would expand police powers instead of protect privacy. “The governor’s proposed amendments to the LPR bills gut privacy protections secured by the legislation,” they write. The governor’s amendments would extend the time police could keep data collected from surveillance devices and let police collect and save crime-related data from drones used during flights that don’t involve law enforcement, they claim.

When not protecting Virginians from Big Brother, Cuccinelli’s been busy oyster farming. He has helped start a farm for the tasty mollusks on the historic Chesapeake Bay island of Tangier. According to an article in The Washington Post, Cuccinelli got involved when he was practicing law in Prince William County after he left office.

He would visit the business and get roped into working at odd jobs. He apparently enjoyed the physical labor and the idea that oysters are entirely self-sustaining and help cleanse bay water.

Environmentalists scoff at the idea, noting that as attorney general, Cuccinelli spent several years investigating Michael Mann, a former University of Virginia climatologist who noted that humans were responsible for the generation of more carbon dioxide emissions and that has brought on climate change.

Some have pointed out that if Cuccinelli had had his way, he would have helped quash climate science, generated even more global warming and sped up the inundation of Tangier Island by rising water levels.

It will be interesting to see if Cuccinelli intends to rebrand himself for future political campaigns and how he tries to reinvent himself.

Nerdistans in Trouble

nerdistan

How badly are suburban office parks getting clobbered in the current real estate environment? Take a look at the Westfields Corporate Center near Washington Dulles International Airport. Two buildings known as Washington Technology Park I and II were appraised at $187.5 million at the peak of the 2000s-era real estate boom. They were just reappraised for $61.1 million — a 68% reduction, according to the Washington Post.

How could that happen? WaPo reporter Jonathan O’Connell provides the background: First, the buildings lost key tenants as the slowdown in defense spending gutted Northern Virginia’s defense-contracting sector. Defense giant Northrup Grumman paid $4.7 million to get out of the lease. Government consulting firm CSC cut back its space from 180,000 square feet to 20,000. Meanwhile, the office vacancy rate climbed throughout Northern Virginia, driving down lease rates generally. Then, on top of that, writes O’Connell:

Buildings far from public transit and walkable amenities like restaurants began to suffer in particular, as young workers flocked to more urban, transit-accessible neighborhoods. So far this year, 92 percent of all office leases of 20,000 square feet or more are within half a mile of an existing or planned Metro station, according to the services firm JLL.

A decade ago, urban geographer Richard Florida famously termed the sterile and isolated office campuses as “nerdistans,” predicting that they would have little appeal to the rising generation of the so-called “creative class.” It has taken a while, but Florida’s insight has become the new conventional wisdom.

The two Washington Technology Park buildings have other problems as well. The owner, Corporate Office Properties Trust (COPT) based in Columbia, Md., has been unable to keep up payments on the $150 million in debt it took on to acquire the buildings. Unable to renegotiate terms, the company stopped making payments. The debt has been transferred to a firm that manages distressed loans. COPT has blamed the drop in market value in part on the property’s fractured ownership.

Bacon’s bottom line: The Washington Technology Park buildings may be an extreme case, but they are indicative of systemic problems in the Northern Virginia real estate market — and suburban real estate markets generally.  In a down market, some properties suffer worse than others. There’s nothing wrong with the buildings. The problem is location. The worst off are office parks on the metropolitan fringe offering none of the community amenities — walkable urbanism, access to mass transit — that workers and employers are increasingly looking for.

Residential development continues in outlying suburban counties because the population continues to grow and urban cores can’t infill fast enough to handle the surge in demand. Not so with commercial development. Businesses are moving to more space-efficient work patterns and they need less space per employee than they once did. That problem is compounded in Northern Virginia, where the market over-built commercial space in anticipation that the 2000s economic boom would continue forever. With the shift in consumer preference to walkable urbanism, car-dependent Nerdistans are the big losers. We’re accustomed to the specter of ghost malls. Don’t be surprised if we soon start seeing ghost office parks.

– JAB

A Plan to Build the Best Educated Workforce by 2030

A multi ethnic group of graduates in graduation gownsby James A. Bacon

Virginia has one of the better educated workforces among the 50 states. The Old Dominion ranked 4th nationally in 2009 by the percentage of population 25 years or older with an advanced degree, and 6th nationally for the percentage with a Bachelor’s degree. Those statistics reflect the fact that the Northern Virginia suburbs of Washington, D.C., have among the highest levels of educational attainment anywhere in the country. Go outside of Northern Virginia, and it’s a different picture. Ranked by the percentage of workers who have graduated from high school, Virginia tumbled to 30th.

What would it take to set the standard for the United States — to build the best educated workforce in the entire country?

The State Council for Higher Education in Virginia (SCHEV) has been asking that question. Indeed SCHEV has developed a statewide strategic plan with four broad goals to achieve that objective by 2030. This plan has no money behind it at present but it provides a road map for how to become No. 1 in educational attainment should the political and cultural will exist to get there.

Virginia’s public universities will develop their own six-year plans that align with the SCHEV plan, says Peter Blake, SCHEV’s executive director, but they can’t get there by themselves.  At some point, he says, the General Assembly will have to increase its public support to make it a reality. Says he: “It’s the commonwealth’s plan.”

The statewide strategic plan has four broad goals:

Provide affordable access for all. Strategies include expanding outreach to traditionally underserved populations; improving readiness of all students; cultivating affordable post-secondary pathways; and align state appropriation financial aid and tuition and fees so students have access regardless of their ability to pay.

Optimize student success. The plan calls for strengthening curricular options to ensure graduates have competencies necessary for employment and civic engagement; helping students to complete their degrees; and engaging adults and veterans in certificate and degree-completion programs and lifelong learning.

Drive change through innovation and investment. Blake describes these goals as the “creative disruption” part of the plan, in which colleges and universities rigorously evaluate what they’re doing on an ongoing basis. Strategies include cultivating innovations that enrich quality, promote collaboration and improve efficiency; fostering faculty excellence, scholarship and diversity; and enhancing higher ed leadership, governance and accountability.

Advancing economic and cultural prosperity. Strategies include building a future-ready workforce in all regions of the state; catalyzing entrepreneurship and business incubation; promoting research and development; and expanding public service to the community.

The framework (goals and strategies) is in place, says Blake. The next step is to adopt metrics by which to measure progress toward those goals. Draft metrics include the following targets:

  • 1.5 million total undergraduate awards
  • Closing the graduation gap between under-represented populations (URPs) and other populations
  • Address the financial needs of 50% of low- and middle-income students
  • 80% of graduates earn sustainable wages within three years of graduation
  • Double R&D expenditures to $2.84 million

Those are the biggies, says Blake, although SCHEV proposes 12 more “related indicators” such as persistence (the percentage of enrollees who graduate within six years), default rates on student loans, state funding, and completions of high-demand degrees.

Cruz, “Liberty” and Teletubbies

AP CRUZ A USA VA By Peter Galuszka

Where’s the “Liberty” in Liberty University?

The Christian school founded by the controversial televangelist Jerry Falwell required students under threat of a $10 “fine” and other punishments to attend a “convocation” Monday where hard-right U.S. Sen. Ted Cruz announced his candidacy for president.

Thus, Liberty produced a throng of people, some 10,000 strong, to cheer on Cruz who wants to throttle Obamacare, gay marriage, abolish the Internal Revenue Service and blunt immigration reform.

Some students stood up to the school for forcing them to become political props. Some wore T-Shirts proclaiming their support of libertarian Rand Paul while others protested the university’s coercion. “I just think it’s unfair. I wouldn’t say it’s dishonest, but it’s approaching dishonesty,” Titus Folks, a Liberty student, told reporters.

University officials, including Jerry Falwell, the son of the late founder, claim they have the right as a private institution to require students to attend “convocations” when they say so. But it doesn’t give them the power to take away the political rights of individual students not to be human displays  in a big and perhaps false show.

There’s another odd issue here. While Liberty obviously supports hard right Tea Party types, the traditional Republican Party in the state is struggling financially.

Russ Moulton, a GOP activist who helped Dave Brat unseat House Majority Leader Eric Cantor in a primary last summer, has emailed party members begging them to come up with $30,000 to help the cash-strapped state party.

GOP party officials downplay the money problem, but it is abundantly clear that the struggles among Virginia Republicans are as stressed out as ever. Brat won in part because he cast himself as a Tea Party favorite painting Cantor as toady for big money interests. The upset drew national attention.

Liberty University has grown from a collection of mobile homes to a successful school, but it always has had the deal with the shadow of its founder. The Rev. Falwell gained notoriety over the years for putting segregationists on his television show and opposing gay rights, going so far as to claim that “Teletubbies,” a cartoon production for young children, covertly backed homosexual role models.

Years ago, the Richmond Times-Dispatch published a story showing that the Rev. Falwell took liberties in promoting the school he founded in 1971. Brochures touting the school pictured a downtown Lynchburg bank building with the bank’s logo airbrushed off. This gave the impression that Liberty was thriving with stately miniature skyscrapers for its campus.

Some observers have noted that Liberty might be an appropriate place for the outspoken Cruz to launch his campaign. The setting tends to blunt the fact that he’s the product of an Ivy League education – something that might not go down too well with Tea Party types – and that he was actually born in Canada, although there is no question about his U.S. citizenship and eligibility to run for question.

Hard-line conservatives have questioned the eligibility of Barack Obama to run for U.S. president although he is likewise qualified.

With Cruz in the ring and Liberty cheering him, it will make for an interesting campaign.

Carbon Cuts: Why PJM Has a Better Idea

pjm-region-1024x657By Peter Galuszka

Amidst all the gnashing of teeth in Virginia about complying with proposed federal carbon dioxide rules, there seems to be one very large part of the debate that’s missing.

Several recent analytical reports explore using regional, carbon marketplaces to help comply with proposed federal Clean Power Plan rules that would cut carbon emissions by 2030. They conclude that the carbon goals can be attained more cheaply and efficiently by using a regional approach.

The lead study is by the PJM Interconnection, a grid that involves all or parts of 13 states including most of Virginia. Its March 2 report states that “state by state compliance options – compared to regional compliance options – likely would result in higher compliance costs for most PJM states because there are fewer low-cost options available within state boundaries than across the entire region.”

The same conclusion was made by another report by the Washington-based consulting firm Analysis Group on March 16. It states: “PJM’s analysis of compliance options demonstrates that regional, market-based approaches can meet Clean Power Plan goals across PJM states at lowest cost, with retirements likely spread out over a number of years.”

PJM set off in its analysis by setting a price per ton of carbon dioxide emissions with an eye towards the entities being exchanged among PJM-member utilities in a new market. The PJM report shows that electricity generation varies greatly among members. Some are farther along with renewables while others are greatly reliant upon coal.

By exchanging carbon units, some coal plants might actually be kept in service longer while overall goals are still achieved. EnergyWire, an industry news service, quotes Michael Kormos, PJM’s executive vice president for operations, as saying that the market-based carbon exchange, somewhat counterintuitively, might keep coal plants running longer.

“With the renewables and nuclear coming in as basically carbon free, we’re actually able run those coal resources more because they are getting credit from renewables and the nuclear as zero carbon.”

In December, PJM had 183,694 megawatts of generation. Some 67,749 megawatts are from coal-fired units.

Kormos says that a number of coal-fired units are going to be retired in the 2015 to 2030 timeframe regardless of what happens with the Clean Power Plan, whose final rules will be prepared by the U.S. Environmental Protection Agency later this year. The retirements of older coal plants are expected to involve a minimum of 6,000 megawatts of power.

It is curious that very little of this report is being heard in the vigorous debate in Virginia about complying with the Clean Power Plan. What you hear is a bunch of humping and grumping from Dominion Virginia Power and its acolytes in the General Assembly, the State Corporation Commission and the media.

This is not a new concept. Carbon trading is active in Europe and has worked here to lessen acid rain.

It is amazing that one hears nothing about it these days. It is shouted down by alarmists who claim that Virginia ratepayers will be stuck with $6 billion in extra bills and that there’s an Obama-led  “War on Coal.” The New York Times has a front-pager this morning about how Kentucky’s Mitch McConnell is taking the rare step of actually leading the “War on Coal” propaganda campaign.

Also strange, if not bizarre, is that this approach is precisely market-based which so many commentators on the blog claim to worship. Where are they on the PJM idea? Has anyone asked Dominion, which is running the show in this debate?

Dominion’s Clever Legerdemain

Dominion's Chesterfield coal-fired plant is Virginia's largest air polluter

Dominion’s Chesterfield coal-fired plant is Virginia’s largest air polluter

By Peter Galuszka

You may have read thousands of words on this blog arguing about the proposed federal Clean Power Plan, its impact on Dominion Virginia Power and a new law passed by the 2015 General Assembly that freezes the utility’s base rates and exempts it from rate reviews for five years.

All of this makes some basic and dangerous assumptions about the future of Dominion’s coal-fired generating plants.

It has somehow gotten into the common mindset that the Environmental Protection Agency will automatically force Dominion to close most of its six coal-fired stations.

Is this really so? And, if it is not, doesn’t that make much of this, including Dominion’s arguments for its five-year holiday from rate reviews by the State Corporation Commission, moot?

In June 2014, the EPA unveiled the Clean Power Plan and asked for comments by this upcoming summer. The idea is to have Virginia cut its carbon emissions by 38 percent by 2025. Coal plants are the largest contributors to carbon emissions by 2025.

A few points:

Dominion announced in 2011 that it would phase out its 638-megawatt coal-fired Chesapeake Energy Center that was built between 1950 and 1958.

In 2011, it also announced plans to phase out coal at its three-unit, 1,141 megawatt Yorktown power plant by shutting one coal-fired unit and converting a second one to natural gas. The units at the station were built in 1957, 1958 and 1974.

Mind you, these announcements came about three years before the EPA asked for comments about its new carbon reduction plan. But somehow, a lack of precision in the debate makes it sound as if the new EPA carbon rules are directly responsible for their closure. But how can that be if Dominion announced the closings in 2011 and the EPA rules were made public in June, 2014? Where’s the link between the events?

When the Chesapeake and Yorktown changes were announced, Dominion Chairman and CEO Thomas F. Farrell II, said: “This is the most cost-effective course to meet expected environmental regulations and maintain reliability for our customers.” Now Dominion is raising the specter of huge bills and unreliable grid.

Dominion has other big coal-fired plants. The largest is the 1,600 megawatt Chesterfield Power Station that provides about 12 per cent of Dominion’s power. Four of its six units—built from 1952 to 1969 — burn coal. Two others built in 1990 and 1992 are combined cycle units that use natural gas and distillate oil.

Dominion has upgraded scrubbers at the units, but the Chesterfield station is the single largest air polluter in the state and one of the largest in the nation.

Another big coal-fired plant is Dominion’s 865-megawatt Clover Power Station. It is more recent, having gone online in 1995 and 1996. It is the second largest carbon emitter in the state.

Then there’s the 600 megawatt Virginia City Hybrid plant that burns both coal and biomass in Wise County. It went into service in 2012.

Dominion had a small coal-fired plant at Bremo Bluffs but has converted it to natural gas.

So, if you add it all up, which coal-fired plants are really in jeopardy of closure by the EPA’s new rules? Chesterfield, Clover or Virginia City?

It’s hard to get a straight answer. In a blog post by Jim Bacon today, he quotes Thomas Wohlfarth, a Dominion senior vice president, as saying “It’s not a foregone conclusion that [the four coal-fired power plants] will be shut down. It’s a very real risk, but not a foregone conclusion.” Another problem is that I count three possible coal-fired plants, and don’t know what the fourth one is.

In a story about the Chesterfield power plant, another spokesman from Dominion told the Chesterfield Observer that Dominion “has no timeline no to close power stations” but it might have to consider some closings if the Clean Power Plan goes ahead as currently drafted.

Environmental groups have said that because of Dominion’s already-announced coal-plant shutdowns and conversion, the state is already 80 percent on its way to meet the proposed Clean Power Plan’s carbon cuts. When I asked a State Corporation Commission spokesman about this last fall, I got no answer.

What seems to be happening is that Dominion is raising the specter of closings without providing specific details of what exactly might be closed and why.

Its previously announced coal-plant shutdowns have suddenly and mysteriously been put back on the table and everyone, including Jim Bacon, the General Assembly and the SCC, seems to be buying into it.

Although there have been significant improvements in cutting pollution, coal-fired plants still are said to be responsible for deaths and illnesses, not to mention climate change. This remains unaddressed. Why is it deemed so essential that coal-fired units built 40, 50 or 60 years ago be kept in operation? It’s like insisting on driving a Studebaker because getting rid of it might cost someone his job that actually vanished years ago.

Also unaddressed is why Virginia can’t get into some kind of carbon tax or market-based caps on carbon pollution that have seen success with cutting acid rain and fluorocarbons.

It’s as if the state’s collective brain is somehow blocking the very idea of exploring a carbon tax and automatically defaults to the idea that if the EPA and the Obama Administration get their way, Virginia ratepayers will be stuck with $6 billion in extra bills and an unreliable electricity grid.

Could it be that this is exactly the mental legerdemain that Dominion very cleverly is foisting on us? Could be. Meanwhile, they continue to get exactly the kind of legislation from the General Assembly they want.

Time For a Fossil Fuel Reality Check

Murray

Murray

By Peter Galuszka

Let’s pause for a moment, catch our breath and realize what is really going on in the world of fossil fuel and climate change.

We’ve heard tons of loosely-based opinion from climate change deniers and drum beaters for the “War on Coal” crowd.

Here are two recent news items:

Coal baron Robert Murray is closing a $1.4 billion deal for Illinois Basin coal. The outspoken, labor-busting  boss who figured prominently in the “War on Coal” campaign during the Mitt Romney presidential run has been picking up reserves in the robust Illinois Basin and in the distressed Appalachians.

His deal for 50 percent of Foresight Energy follows another he did in 2013 worth $3.5 billion to buy five Appalachian mines from Consol.

What does this mean? It shows that coal overall does have a future, especially in the high-sulfur Illinois Basin which has been rediscovered since utilities such as the Tennessee Valley Authority have been forced to use better scrubbing equipment. Illinois Basin can be twenty bucks a ton cheaper than Appalachian product. He also sees some future left in high coast Appalachian coal.

Stop a moment and consider: new environmental regs promote the use of cheaper coal. Now that coal may not be in the Central Appalachian area of southwest Virginia and West Virginia. But the magic of the market is favoring Illinois Basin product which is simply easier and cheaper to mine as is Powder River Basin coal in Wyoming and Montana.

A big problem with some of the commentators on this blog is that they fail to grasp that the U.S. coal industry is a lot bigger than little ole Virginny’s mines that started to play out decades ago. In their world view, their demise is the fault of the bad old federal government, not sharp barons like Murray who is a major contributor to (ahem) the Republican Party. Their brains seem trapped in a geographical warp zone where they cannot imagine things beyond the borders of the Old Dominion.

And while we are on the GOP, let’s consider George Schultz’s oped Sunday in The Washington Post. For those of you who may forget, he was Secretary of State under Ronald Reagan, the mystical president some of you love and miss dearly.

Schultz’s message is that human based climate change is here. So, stop denying it, get over it and get on with a carbon tax that worked to protect the ozone layer years ago. Yes, they actually worked that out back in Ronnie’s day and a tax and marker system to reduce fluorocarbons actually worked.

Not to add insult to injury, but consider what Schultz wrote: “For example, we can now produce electricity from the wind and sun at close to the same price we pay for electricity from other sources…”

Hmm. Sounds like a wild-eyed, irresponsible greenie. Someone tell Jim Bacon and Dominion Virginia Power.

Film Rips Climate Change Deniers

merchants-of-doubt-posterBy Peter Galuszka

A just-released documentary “Merchants of Doubt” seems tailor-made for the readers of Bacons Rebellion.

The film by Robert Kenner explores the profession of doubting climate change in which the energy industry quietly hires “scientists” to debunk the idea that carbon dioxide emissions are creating global warming that could have catastrophic consequences.

The strategy of confronting scientific evidence that is damaging to a particular industry has been around since at least the 1960s when the chemical industry tried to dismiss the idea that the insecticide DDT widely used to control mosquitoes could be deadly to wildlife for decades.

Big Tobacco took the concept to entirely new levels when scientific studies in the 1960s linked tobacco smoking to addictive nicotine, cancer and other bad things. Cigarette makers hauled out their own supposedly independent but payrolled “scientists” to raise doubt about the claims before congressional committees and to the general public.

The tobacco industry snowballed their phony science into yet another sphere. There had been complaints that people were being killed when they fell asleep on furniture while holding smoldering cigarettes.

The cigarette makers could have put in fire retardants in the smokes but they thought it would be too costly. So, they set up a scenario where furniture makers would load up sofas and chairs with fire retardants, which, unfortunately, proved carcinogenic or otherwise harmful. Then, of course, the chemical industry found its own “scientists” to claim the flame retardants they put in furniture were safe.

According to review so the film which I haven’t seen (it was just released March 6), Big Energy is using the very same tactics with help from the Koch Brothers and their network of paid think tanks (such as the “Heartland Institute”) to debunk the link between carbon and climate change. You may see some of those ideas popping up on this blog from time to time.

Kenner has won awards for such documentaries as “Food, Inc.” His latest film is based on a 2011 book with the same title by Naomi Oreskes and Erik M. Conway. According to a review in The Washington Post, “What’s disheartening about “Merchants of Death” is that the strategy still works so effectively in a hyper-partisan, intellectually lazy, spin-addicted 24-7 news cycle.”

Can anyone guess which news channel fits the bill?

Why Clean Energy Will Be Cheaper

Dominion's Cove Point

Dominion’s Cove Point

By Peter Galuszka

The Sturm und Drang to which utility executives, coal companies and politicians have subjected Virginians as they oppose President Barack Obama’s Clean Power Plan to reduce carbon emissions has always been a deliberate distraction from what’s really happening.

According to them and their confederates at the State Corporation Commission and the state Department of Environmental Quality, the clean air act which seeks to reduce carbon dioxide emissions by a certain date is a foolhardy, ill-intended bureaucratic effort to put coal out of business and slap ratepayers with bigger bills.

I had a moment of clarity when I read this morning’s Local Opinions page in The Washington Post  and a saw an article by Jon B. Wellinghoff. He is the immediate past chairman of the Federal Energy Regulatory Commission so he likely knows a little about energy.

His argument is that basic economics go against the electricity and coal industries’ arguments that reducing carbon will be too expensive. He cites a study by PJM, the large electricity grid of which Virginia is a part. “PJM announced this week that Virginia’s energy costs would be lower under the CPP than without it,?” he writes.

Why so? Wellinghoff says that utilities like Dominion are riding a nice low price natural gas bubble. Gas in the U.S. is going for $3 per million British Thermal Units. How long it will last is the crucial question.

Natural gas costs three times as much in Asia and Europe and (knock, knock) guess which companies are scrambling to get a new set of terminals so they can export it? Electric utilities like Dominion, that’s who.

Dominion is pressing ahead to convert its Cove Point liquefied natural gas plant on the Chesapeake Bay kin Maryland so that it can export gas to Japan and India. Dominion is also pushing a controversial $5 billion pipeline from West Virginia gas fracklands to the southeast. A spur of it would run to port areas in Hampton Roads but if you suggest that maybe Dominion plans to export gas from it, the public relations people get a mite testy.

Wellinghoff doesn’t specifically identify Dominion’s plans but he says there are 14 gas expert terminals underway.

For Virginia ratepayers, that means that a cheap, local commodity will become an expensive, global commodity. The United States will export a commodity and import price volatility.

Who will make money by exporting gas and messing up domestic prices?Dominion, that’s who.

It’s import to remember that the low price gas bubble will pop someday. Therefore, the state needs to stop whining about going to renewables and start applying them. Utilities need to make it easier for homes and business to deploy solar panels and sell extra juice back tot he grid. The U.S. uses 40 percent of the power it generates because of inefficient grids. Virginia is No. 35 in terms of state energy efficiency. Where are efforts to improve this?

Virginia’s disappearing coal industry has been complaining for years that government regulation is driving it out of business. The truth is that coal seams are becoming too uneconomic to mine. Gas is eating its lunch. I went to a Platt’s coal conference a couple of years ago In Florida where I learned that gas would have to jump to something like $8 per million BTU to make Virginia coal profitable again.

That might happen is gas prices rise as Wellinghoff predicts. But he is right that the cadre of utilities are barking up the wrong tree.