January 2014
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January 2014 EnergyBiz interview when asked if he were starting over in the power industry …

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January 2014 energybiz interview when asked if he were starting over in the power industry

January 2014 EnergyBiz interview when asked if he were starting over in the power industry …

“I would put solar on rooftops. I would want the ability to deploy new technologies that lead to productivity gains in the use of electricity in homes and businesses. I would go after the monopoly that I see weakened over the last 25 years.  My goal would be to take customers away from utilities as fast as I could, because I think they’re vulnerable. Regulations will not be changed fast enough… The business model will not be changed fast enough.”

Jim Rogers,

former CEO Duke Energy



What is wrong
What is wrong…

  • Antiquated regulatory scheme.

  • State sanctioned monopoly built around a market model that no longer exist.

  • System prohibits or resist new technologies and business models.

  • No free market efficiency or innovation


Antiquated regulatory scheme
Antiquated regulatory scheme.

  • NCUC is seriously under resourced and overburdened with a regulatory system that is antiquated, passive, and overly broad

  • No free market focus or adaptive methodology for new technologies or business models.

  • No proactive regulatory component


State sanctioned monopoly built around a market model that is no long viable
State sanctioned monopoly built around a market model that is no long viable.

  • 75 year old model based on ever expanding energy demand and 1930 technology.

  • Regulatory scheme that does not rapidly adapt for new technology or business models.

  • Incorporates all the inefficiencies of monopoly markets and resist innovation.

  • Regulatory scheme that does not address the security of electricity and the vulnerability to modern threats.


Power demand is falling
Power demand is falling is no long viable..


Prohibits or resist new technologies and new business models
Prohibits or resist new technologies and new business models.

  • Private construction of generation. (2nd Cycle cost for ground mounted fixed tilt solar after 5 years…. 66 cents per watt)

  • Distributed generation vs mega generation construction.

  • Inclusion of decommissioning cost and fuel residue.

  • Inclusion of line loss or smart grid evolution


January 2014 energybiz interview when asked if he were starting over in the power industry

SOLAR models.

Capital cost per watt

(Ground mount, fixed tilt)

$1.85

No Fuel

Minor maintenance cost,

No fuel residue cost

Minor decommissioning cos

CONVENTIONAL

Capital cost per watt

(gas, coal, nuke)

$1.23 - $1.46

Not including:

  • fuel cost

  • maintenance cost,

  • fuel residue disposal cost

  • Decommissioning cost


No free market efficiency or innovation
No free market efficiency or innovation models.

  • Wasteful - No competitive efficiency

  • Rewards stagnation, not innovation

  • No comparative analysis of alternatives

  • Regulatory inertia

  • Institutionalized corporate mindset

  • No forward thinking strategy

  • Strong resistance to new players or technology


What is needed
What is needed…. models.

  • Stop the posturing and make our energy market a priority.

  • NCUC resources and revision including alternative and comparative analysis mission.

  • Utility separation into generation, transmission and distribution.

  • Delineation that utility regulatory authority ends at the meter. Free market on private side.

  • Strategy for introducing free market competition and efficiency into model.

  • Regulatory mandate of distributed generation





Adapt to market changes or embrace the economic sideline
Adapt to market changes or embrace the economic sideline models.

  • Encourage new technologies

  • Encourage new business models

  • Encourage free market efficiency & innovation

  • Stop passive regulatory system- be proactive.


Keep your eye on the ball
Keep your eye on the ball. models.

Companies have 49 other States they can go to and most are not regulated.