Valuing Electricity Affordability, Technology Economy · Valuing Electricity ‐Affordability, ... natural energy flows by unlocking the ... Worldwide rural electrification progresses

Valuing Electricity ‐ Affordability, Technology & Economy

Presentation to the Adams County Economic Development

Board of DirectorsJuly 25, 2013

When we harness energy…

…we enable new ways to accomplish fundamental 

tasks.

When we harness energy to provide power…

…we enable innovation.

1760-1840

"For the first time in history, the living standards of the masses of ordinary people began to undergo sustained growth ... Nothing remotely like this economic behavior is mentioned by the classical economists, even as a theoretical possibility.“

‐ Robert E. Lucas, Jr., Nobel Prize economist 

1769

Horsepower = The work done when a horse lifts a 550‐pound load of water or coal out of a mineshaft at a rate of one foot per second a rate of one foot per second. 

1850

The growing use of fossil fuels “freed human society from the fluctuations of natural energy flows by unlocking the Earth’s vast stores of oil, coal, and natural gas. Tapping these ancient concentrated deposits of solar energy multiplied the rate at which energy could be poured into the human economy.”

‐ U.S. Energy Information Administration

1879

1882

Pearl Street Station

1st Commercially practical

incandescent light

Where energy goes…

…so goes progress.

1923: Red Wing Project – 9 MN farms1925: 205K of 6.3M farms electrified1936: REA authorized by Congress1935-39: # of electrified farms doublesEarly 1970s: 98% of farms electrified1994: REA abolished, replaced by RUS

Today, innovation meets risk…

…and utilities must manage the risks of 

providing electric power

Ozone PM2.5

Beginning CAIR Phase I Seasonal NOx Cap

HAPs MACT proposed

rule

Beginning CAIR Phase II Seasonal NOx Cap

Revised Ozone NAAQS

Begin CAIR

Phase I Annual

SO2 Cap

-- adapted from Wegman (EPA 2003)

Beginning CAIR Phase II Annual SO2 & NOx Caps

Next PM-2.5

NAAQS Revision

Next Ozone NAAQS Revision

SO2Primary NAAQS

SO2/NO2Secondary

NAAQSNO2 Primary NAAQS

SO2/NO2

New PM-2.5 NAAQS Designations

CAMR & Delisting Rule vacated

Hg/HAPS

Final EPA Nonattainment Designations

PM-2.5SIPs due (‘06)

Proposed CAIR Replacement

Rule Expected

HAPS MACT final rule expected

Reconsidered Ozone SIPs

due

CAIR Vacated

HAPS MACT Compliance 3 yrs

after final rule

CAIR Remanded

CAIR

Begin CAIR

Phase I Annual

NOx Cap

PM-2.5 SIPs due (‘97)

316(b) proposedrule expected

316(b) final ruleexpected

316(b) Compliance3-4 yrs after final ruleEffluent

Guidelinesproposed rule

expected

Water

Effluent GuidelinesFinal rule expected Effluent Guidelines

Compliance 3-5 yrs after final rule

Begin Compliance Requirements

under Final CCB Rule (ground

water monitoring, double monitors, closure, dry ash

conversion)

Ash

Proposed Rule for CCBs

Management

Final Rule for CCBs Mgmt

Final CAIR Replacement

Rule Expected

Compliance with CAIR

Replacement Rule

CO2

CO2Regulation

Reconsidered Ozone NAAQS

'08 '09 '10 '11 '12 '13 '14 '15 '16 '17

EIBRulemaking

We meet the challenge by…

… diversifying our fleet…

Worldwide rural electrification progresses only slowly. 

We meet the challenge by…

…investing in R&D and technology.

We meet the challenge by…

…educating and enabling.

Take away’s…

Affordable electric power is an indispensible 

resource for families, businesses, rural 

communities and the economy. 

Energy regulations should be based on science and engineering principles, not political goals.

We can generate affordable, reliable 

electricity AND protect human health and the 

environment.

Electric co‐ops live the “all of the above” energy concept – and don’t believe any fuel should be taken off the table. 

Questions?

Thanks!Drew Kramer

Public Affairs ManagerO: (303) 254‐3086M: (303) 681‐1341

E: [email protected]