See 24 Hours of Electricity Price Changes Before Your Eyes

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This 24 hour time lapse of wholesale electricity costs in our area show just how detached ratepayers are from what is really going on with wholesale energy prices. This was provided courtesy of the Office of the Federal Energy Regulatory Commission. Don’t worry it only takes about a minute to watch.

http://www.EnergyCollection.us/Companies/MidwestISO/MISO_LMP_7-21-2011.wmv

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25 COMMENTS

  1. LOL what is the premise? Are the ‘colors’ in the time lapse the changes in prices or the changes in supply and/or demand–I can’t really tell. Also, if FERC believes that there are ‘detached ratepayers’, what is the public policy recommendation to ‘attach’ the ratepayers ?

  3. Need more explanation of what, specifically, we are watching in the time lapse.

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  5. Do you EVV farmers need an instruction book ? FERC is showing you that there are ‘anomalies’ (look it up) going on all day in the wholesale market pricing of electricity. That means your Daddy, Vectren, can and does get juicy deals all day long. Since you sold your soul to the IURC, those savings don’t get passed along–you pay Retail on an IURC-approved tariff regardless of how much your favorite monopoly has saved that day. If the ratepayer (EVV “citizens”) could get in on that action (‘attach’ themselves to the marketplace), lower electricity prices to slop the hogs, wash the chickens, etc.

    • It is most refreshing to see that someone else gets it. Too bad it is an Indyconsultant instead of an Evansville based one.

    • Be assured that your condescending attitude is breath of fresh air to us woodsie bumpkins down here in McGary Landing and Boontucky where most of what we get to breathe is sulfurous flatulence spewed out by the coal fired plants that pump power up to y’all big city, fancy pants fat-heads.

    • Yes there are times when there are terrific bargains in electric power. It also swings the other way, I’ve seen days in the last year when wholesale power was selling for 10 times what Vectren customers were paying. So if you take the savings you must be prepared to take the expensive days also.

      • Henry, or do you prefer Mr. Chapman:

        We accept your offer to take all of the savings along with all the expensive days, and we will accomplish that by establishing Evansville Power & Light, where all of the juice will be purchased at the lowest prevailing wholesale prices. When the Vectren bankruptcy filing is made, we can hopefully help you out by making a few offers to the bankruptcy trustee for those transmission lines you won’t be needing.

    • Indyconsultant

      Thanks for the explanation. I wish I could say the same about the attitude.

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  6. So now that all of you smarty-pants have defined the problem, what is the solution? How does one make the IURC die a quick but painful death? And how soon may that be accomplished?

    • solutions,

      1) Dissolve the model of a for-profit monopoly (i.e., Vectren). The regulation would be that if you have a monopoly, it’s Cost Plus only. Of course, this approach is laden with politics and lots of lobbying;

      2) Local solution, such as your muni buying it’s electricity directly on the wholesale market, and eliminate “the middle man” (Vectren). EVV wouldn’t generate any power, only purchase electricity and distribute it to citizens, presumably at cost.

      • Why is it not possible that the IURC require Vectren to purchase the coal or gas for its burn from the lowest cost provider?

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      • I pick door number 2. Leo, are you there? What is involved in eliminating the middle man? You have probably stated this before but this is new and complex territory for lots of folks including me. And I am sure the Vectren resistance would be loud and mighty. Seriously has anyone outlined a realistic and doable plan? How would one start?

        • 292, among the steps needed to ‘eliminate the middle man’, and getting electricity wholesale, would be:

          1) Study other IN communities who are doing this and learn from their findings. Here’s a good place to start:

          http://www.impa.com/

          2) Lots of feasibility number crunching. EPL would need transmission lines, and after a bond issue for that plus the wholesale electricity plus office & service overhead (highly simplified discussion here), one would arrive at the cost to a ratepayer of a unit of electricity purchased from EPL vs. purchased from Vectren (the end of step 2 will likely be a lot of celebrating and drinking !);

          3) After the feasibility has been passed, you have to find a building. Why not “repurpose” the Centre–that would make a dandy HQ for Evansville Power & Light, plus you would eliminate the Centre’s losses. Also, the Centre will be paid for in 2018 or so . . . and then there will no overhead for building finance in the rate, so the citizens will actually get something for the worthless Centre (a paid off HQ for the new Power Co.);

          4) Have to float the Bond Issue to buy the transmission lines. This will weed out the men & women from the boys and girls in office; and

          5) If everything is a go, have to hire a few people at REASONABLE salaries . . . maybe, just maybe, a few laid off Vectren people hop on this ?

          Consider this Evansville Power & Light 101, many more steps, but it can be done !

          • It can be done but is it realistic to do? Is there anyone or a group of anyones who have the clout, the intelligence, and the will to carry this off? How long would it take and will I live that long?

            I am not putting you down. I love this idea. We would all be in this together, not under the thumb of a state “supported” monopoly, a public company driving to make money for their stock holders and high salaried executives. Green energy sources could be tapped which is another plus in my book.

            Seems like if the snooty folks in Carmel, IN can do it, we can too.

  7. IMO, the CCO should call out Councilman Friend for being silent about Vectren now that the election is over. As a matter of fact, he’s went silent about everything just like he had been ever since he was elected up until it was time to get himself re-elected.

    • BigPappa,

      Which one of these applies to Councilman Friend:

      1) Lied about what he would do going forward just to get elected;

      2) Highly disorganized guy, hasn’t “gotten his shit together” yet’;

      3) “Tax Season” . . . he’s a little busy right now !; or

      4) All of the Above

      Answer: ____________

        • I have to agree….been a lot of grumbling from folks who feel he is and has been less than genuine, which is par for the course when it comes to most of our city council members….of course we are talking about politicians so it really isn’t a huge surprise, I would think Mr Friend is yet another with higher aspirations honing his skills.

          JMHO

          • Prime example, he switched parties after he couldn’t get elected as a Republican. Shows he was more interested in getting elected than standing up for any sort of principles.

  8. 292, preliminary conceptual work is already being done by some smart people both from here and elsewhere. Is it realistic ? You answered this question with your observation about Carmel, IN, plus I’ll toss in two local cities I know of that “do electricity themselves”, which are Jasper, IN and Henderson, KY. The answer is an unequivocal “YES”, Evansville Power & Light is realistic !

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