Tag Archives: Bill O’Keefe

Account for All of the Costs

by Bill O’Keefe

Opposition to Dominion’s offshore windfarm has come mainly from critics who cite technology, economic, and energy-system concerns and problems. Unfortunately, these have only been persuasive enough to slow down the reckless rush by Dominion and its allies in the General Assembly to obtain SCC approval. What about the impact on human health?

Where is the public health consideration? Windmills are notorious for killing birds and bats, but the significance of this is not explored. After all, what are a few birds and bats worth when it comes to saving the planet? Well, the answer is more than advocates will admit. Killing bats has a human health effect.

Mosquitoes are at the top of bats’ menus. Mosquitoes are the bane of outdoor enjoyment and a boon for the insect spray industry. As a result, most of us give little thought to the dangers of mosquitoes; but they are not trivial.

According to the World Atlas, “These swarming yet stealthy insects have proven to be more than just an annoyance to the human race. In some parts of the world, female mosquitoes (the ones that do the biting) do not just leave behind an itchy red lump, but sometimes also diseases such as dengue, West Nile, yellow fever, Zika, chikungunya, lymphatic filariasis, and the big one: malaria. Each year, somewhere around 725,000 to 1,000,000 people die from mosquito-borne diseases.” Continue reading

Thinking About Gun Control

by Bill O’Keefe

After each mass shooting there is an outcry for Congress to do something. In 2021, there were almost 21,000 murders involving guns and almost 700 mass shootings (those involving four or more victims).

There has been no responsible action at the Federal level because Congress seems more interested in political food fights then in taking action that can make a difference. Henry Clay once observed that politics is not about ideology; it’s about governing, and if you can’t compromise you can’t govern. Congress in the existing political environment can only compromise by accident.

The fact that Congress is paralyzed is no reason for states to avoid taking action.  In the last few years, the Virginia General Assembly has passed several gun laws.  These laws, which created a backlash in a number of counties, imposed universal background checks on gun sales, created extreme risk protective orders that allow authorities to temporarily seize guns from people deemed dangerous, required gun owners to report lost or stolen firearms, restored the former one-handgun-a-month law and boosted penalties for leaving guns accessible to children. Continue reading

Democrats Against Due Diligence

by Bill O’Keefe

In 2020, as we all know, the Democrat-controlled General Assembly passed the Virginia Clean Economy Act (VCEA) to eliminate fossil energy for electric power generation while simultaneously restricting the regulatory oversight of the State Corporation Commission (SCC). The effect of the legislation was, in effect, a license to pick the pockets of Dominion ratepayers.

Dominion likes to portray itself as a standup corporate citizen that provides low-cost energy to its customers while also excelling at environmental stewardship. If that were true, Dominion and its lobbyists would not have worked so hard to restrict the State Corporation Commission or defeat a proposed amendment to VCEA by Delegate Lee Ware, R-Powhatan, to remove the restrictions on the SCC and allow it to exercise due diligence over Dominion’s almost $10 billion offshore wind farm.

Dominion will use its PR machine to demonstrate that it is honorable and had no hand in defeating Delegate Ware’s amendment. That might be potentially believable were it not for Dominion’s lobbying history and its scandalous political contributions to a PAC — Accountability Virginia — to suppress Republican turnout in our recent election. When the donation became public knowledge, Dominion first attempted to defend its action and then apologize claiming that the contribution was an innocent mistake. While it was demanding a return of its $200,000, Dominion’s CEO and other top executives were making personal contributions to the vote suppressing PAC. Continue reading

Virginia, Heed the EU’s Failed Climate Policy

by Bill O’Keefe

U.S. climate policy has been heavily influenced by actions taken by European nations, even when it was obvious that many of those actions were fraught with problems.

Now the European Union (EU) may be on the verge of taking steps to reverse course and allowing economic and political realities to exert a greater influence on policy. The EU, which led the movement away from fossil fuels to green energy, mainly wind and solar, is seeing its dream become a nightmare — wind and solar don’t work the way they were supposed to, and energy costs are skyrocketing.

On New Year’s Day, Reuter’s reported that the EU may be on the verge of reversing course. It has developed a proposal that would allow some natural gas and nuclear facilities to qualify as “green.”

Since CO2 is the alleged threat to our future, nuclear power, which doesn’t emit CO2, is by definition “green.” Disposal of nuclear waste is an issue, but not a major one if you believe that the alternative is destruction of the planet. Similarly, natural gas emits far less CO2 than coal, and companies are investing in carbon capture technology. EU green advocates continue to build natural gas plants because gas is what they burn when wind and solar can’t meet the demand for electricity. Continue reading

The World Doesn’t Work that Way

Image credit: Roanoke Times

by Bill O’Keefe

The political elites who promoted the passage of the Virginia Clean Economy Act would have us believe that planning an energy transition is no more difficult than planning a long vacation. You know where you want to go, how long you will be gone, and how you plan to travel. The Clean Energy Act was demonstrated extreme hubris. Uncertainties and unintended consequences were viewed as minor matters, if considered at all.

Advocates seemed to think that what looks doable in theory will be doable in practice. That was certainly the case where members of the Virginia General Assembly and environmentalists who pushed passage of the Virginia Clean Economy Act. The world doesn’t work that way. The announcement by Dominion’s CEO that the cost estimate has risen from $8 to 10 billion was an early sign about future cost increases.

These advocates forget the truism that in theory, theory and practice are the same but in practice they are not. We are slowly beginning to see nationally as well as here in the Commonwealth that long-term energy planning involves a lot of uncertainties, unintended consequences. and consumer sensitivity to price increases. Continue reading

The Imperative for Reflection

Virginia’s “Lewis and Clark” energy future calls for an adaptable energy policy responsive to new information as it is gathered.

by Bill O’Keefe

Politicians are not known for engaging in reflection or looking back on legislation, but they should. The experience that Europe is having with its version of the Virginia Clean Economy Act is the reason why. Presently, Europe is experiencing energy shortages and surging prices. Some of this turmoil is due to global forces but some is due to energy decisions that European nations have made, in particular the decision to move rapidly to renewables and eliminate coal, nuclear and natural gas as major sources of electricity.

Green ideology blinded Germany and other European countries to the fact that wind and solar don’t provide around-the-clock reliable sources of energy. This summer there have been extended periods of low or no wind. Last winter, European nations experienced colder-than-normal temperatures which had the effect of reducing both solar and wind power and leading to steep price increases. Without reliable and commercially viable electric storage systems, renewables are vulnerable to cloud and snow cover and periods of low wind.

The General Assembly and Dominion Energy would do well to take a close look at Europe’s experience and determine how Virginia can avoid a similar fate. One important lesson is that major transitions are complex and beset with many uncertainties. Another is that government has at best a mixed record when it comes to industrial policy. Continue reading

Lee, a Study in Contradictions

By Bill O’Keefe

Yesterday’s edition of The New York Times contains an opinion piece — “How Do I Tell the Story of Robert E. Lee,” by Allen Guelzo a professor at Princeton University. It came to me from a colleague of his whom I casually know but respect. Guezlo is about to publish “Robert E. Lee: A Life,” and the opinion piece is about his struggle to do so fairly. His book represents seven years of effort and, as he himself states, “Lee is a study in contradictions.” Dealing with those contradictions fairly would explain a seven-year undertaking.

Guelzo makes his challenge clear with this statement: “There are some biographies that are almost impossible to write, but write them we must. Biography demands a close encounter with a subject, an entrance into motive, perception and explanation. The intimacy of that encounter carries with it the danger of dulling the edge of the historian’s moral judgment — and that kind of judgment is what makes historical inquiry worthwhile, something more than a mere jumble of events and dates.”

Guezlo brings out the point, often overlooked, that Lee believed that slavery was “a moral and political evil in any country,” but that he also believed, as did others, that blacks were better off as slaves than living in Africa. Perhaps that is how many slave owners soothed their consciences. Continue reading

Repeal the Clean Economy Act

by Bill O’Keefe

The Virginia Clean Economy Act (VCEA) mandates a plan for the Commonwealth electric grid to become carbon free. It is one of the most ambitious climate policies adopted by any state. Dominion Energy is the primary vehicle for achieving the carbon free goal.

There is only one reason for such an ambitious, costly, and risky policy. The General Assembly and the Governor accept the narrative that climate change is caused by fossil energy use and is a foreseeable existential threat. Is it, and is VCEA the best strategy for responding?

There are strong reasons to doubt that the “Climate Crisis” is in fact an existential crisis or that the Commonwealth has adopted the most efficient and cost-effective strategy for dealing with whatever  climate problem actually exists.

Almost all that policy makers and legislators know about climate change comes from interpretations of the Intergovernmental Panel on Climate Change  (IPCC) and its periodic reports.  For the most part, decision makers are provided papers and briefings on what the IPCC has concluded, primarily from its Summary for Policy Makers (SPM). It will come as a surprise to learn that the Summary for Policy Makers does not necessarily reflect what is contained in the underlying scientific assessment. Continue reading

A Cautionary Tale

Dominion’s experimental wind turbines off the Virginia coast.

by Bill O’Keefe

The General Assembly, Governor Ralph Northam, and Dominion Energy are proud of their commitment to achieve zero carbon emissions by 2050.  Dominion routinely showcases its planned wind farm 27 miles off of the Virginia coast. Before Dominion and the Commonwealth get beyond the point of no return — governments don’t acknowledge sunk costs, opportunity costs or terminate failed programs — they would do well to closely examine the experience with wind power in Germany.

Germany is a leader in the green energy movement and has installed over 30,000 windmills. The German renewable energy program started in 2000. After 20 years, there is a problem. The German wind power industry is suffering setbacks. Hardly any new turbines are being built, and more and more old wind turbines are being phased out. Some of the problems don’t apply to Virginia since they concern on-shore wind mills but there are lessons to be learned.

Many German wind farms are threatened with shutdown. The German Renewable Energy Act, which has been in force since 2000, guarantees wind turbine operators secure subsidies for twenty years. Without subsidies they are no longer profitable. By 2025, there is a risk of 15,000 MW of wind projects will be lost corresponding to over a quarter of Germany’s onshore wind power. Continue reading

Legislative Bamboozle and Blind Faith

Globe on fire

by Bill O’Keefe

The Virginia Clean Economy Act (VCEA) establishes a mandatory renewable portfolio standard (RPS) program that requires Dominion Energy to deliver electricity from 100% renewable sources by 2045. Let this sink in. Legislation passed and signed into law in 2020 imposes a mandated outcome for 25 years hence even though the legislators who voted for VCEA had no idea how it was to be achieved. They either believed that the private sector would invent the technology, independent of cost, or that the threat of extinction from climate change was so serious that a way would be found to head it off. More than likely, they didn’t give the “how” question or the question of cost much thought. Theirs was a crusade.

Hair on fire

It is probably true that if cost and cost-effectiveness are ignored Dominion Energy can find a way to satisfy the legislative mandate. Its plan to build the nation’s largest wind farm shows that it knows how to think big and will get its customers to pay the price in terms of higher rates to buy the needed technology. If Dominion can find a way to avoid shuttering it nuclear and natural gas power generation it will at least have a fall back strategy. Pleasing legislators obviously has a higher priority than cost-effect and reliable electric power.

Before it is too late, legislators and Dominion customers might benefit from a dose of reality. Germany which has been a leader in the move from fossil energy to wind and solar may well be the canary in the mine. Continue reading

Floating Nukes: a Better Alternative?

Schematic of a floating nuclear power plant. Credit: JVE Journals

by Bill O’Keefe

Dominion Energy, with the blessing of the Legislature is in the process of building a monstrous wind farm off the coast of Virginia. It will be 27 miles offshore and occupy an area of over 176 square miles — 92% as large as Richmond. When fully built, there will be 220 windmills, each standing 200 feet above water level. The cost is currently estimated to be $7.8 billion but cost overruns are inevitable. Think about this long enough to form a mental picture of what this will look like.

Since the Legislature has mandated a net zero emission future in the coming decades, Dominion is more than willing to take up the challenge and accommodate the Legislature’s dream. Not only is Dominion guaranteed a rate of return on the power generated but it also profits from capital construction expenditures. Non-regulated corporations should be so lucky. And, if it turns out that the windfarm doesn’t produce as promised or is made obsolete by technology or more accurate climate science, it won’t be Dominion that takes the loss, it will be Dominion’s customers.

When all is said and done, our electricity rates will be much higher than they are today — 12 cents per Kwh, well below states like California committed to the zero-carbon path. California’s residential rates are almost 20 cents per Kwh and rising. One estimate says they will rise to 40 cents when the natural gas ban is fully implemented. Continue reading

The Big Gamble

Image source: www.piqsels.com

by Bill O’Keefe

Virginia’s Clean Economy act requires Dominion to provide a 100% carbon-free grid by 2045. This law represents a big gamble that Dominion embraced with a “balls to the wall” enthusiasm because the $9 billion cost, which will most likely be higher, will be provided by rate payers, not share owners. To quote a truism, nobody spends someone else’s money like their own. This legislation proves it.

Dominion’s confidence in achieving the General Assembly’s mandate is unrealistic. Given technological uncertainties, it is the height of folly to accept a mandate that establishes a goal and the date by which it is must be achieved. The history of technology-forcing mandates is a sorry one.

Dominion has touted the recent tests of two offshore turbines as reason for optimism for the planned project of 180 to 220 turbines located 27 miles offshore will cover 112,800 acres. That represents 176 square miles, roughly the size of King George County and more than three times as large as Norfolk. And the turbines will stand 600 feet about the surface. Continue reading

The Long and Winding Road to Net Zero

by Bill O’Keefe

State law, embodied in SB 851, requires Dominion Energy to supply 30% percent of its power from renewable energy sources by 2030 and to close all carbon-emitting power plants by 2045. In other words, Dominion must develop a plan to be emission free by 2045, less than 25 years from now.

The preeminent energy historian and author, Daniel Yergin, has just published The New Map: Energy, Climate, and the Clash of Nations. Not only does he address the geopolitics of energy but he addresses the challenges of transitioning from an energy budget that is 80% oil, gas, and coal to one that has net zero emissions.

The history of energy transitions shows that they do not happen quickly,  according to Yergin. The movement from wood to the dominance of coal took 200 years and it took another 100 years for oil to replace coal as our dominant energy source. Of course, those transitions did not involve the incentives created by government policies and funding, political activism, and the push for new energy technologies. The use of industrial policy to bring about this transition sooner may succeed but right now it is a triumph of hope over experience. During the time when the first oil embargo created economic havoc, the administrations of Richard Nixon and Jimmy Carter invested heavily to bring about alternatives to oil. All they achieved was a waste of billions of dollars. Continue reading

Keep California on the West Coast

Rolling blackout in Pasadena, CA.

by Bill O’Keefe

Virginia has passed a law — SB 851 — requiring Dominion Energy to supply 30% percent of its power from renewable energy sources by 2030 and to close all carbon-emitting power plants by 2045. According to the Energy Information Administration, natural gas fueled 53% of Virginia’s electricity net generation in 2018, nuclear power provided almost 31%, coal fueled about 10% and renewable resources, primarily biomass, supplied nearly 7%. Over the next decade, Virginia must replace its coal fired power and reduce its gas-generated electricity by over 40%. From its public statements, Dominion plans to go all out in wind and solar, emulating California.

California’s electricity rates are 61% higher than Virginia’s — 19.79 cents per Kwh versus 12.28 cents. Over the past month, there have been numerous news stories about rolling blackouts in California caused by renewable energy mandates and inability to substitute enough from other sources when solar and wind aren’t able to meet demand. Continue reading

Revisionist History Is a Fool’s Errand

by Bill O’Keefe

One of the actions growing from the Black Life Matters movement is an effort to eradicate the memory of anyone associated with the Confederacy. Here in Richmond, Virginia Commonwealth University has a process in place that could lead to removing commemoration even of individuals who served as a doctor or nurse. The City of Richmond is removing all statues of Confederate generals from Monument Avenue. Only the statue of Robert E. Lee remains because of legal action taken by residents of the historical district.

Advocates are being carried away by emotion without thinking through the long run consequences or whether they have any historic, objective or logical justification. No one argues in favor of slavery or denies that it was morally reprehensible. But that comes from today’s knowledge and understanding. Applying today’s standards to  past actions not only distorts history but is misleading and robs future generations of the opportunity to learn accurately.

What does history tell us about slavery, secession, and Robert E. Lee? Slavery far predates the Civil War. It goes back to biblical times and was accepted in Europe up through much of the 18th century. Should our condemnation go as far back as the days of the pharaohs? The Emancipation Proclamation began a process that has taken far too long to achieve but much of human progress is slow and painful. Continue reading