Cost of Electricity Declines 50% as Shale Spurs Natural Gas Glut

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    Jan 18, 2012 2:45 AM GMT
    So naturally there are environmentalists and Democrats who want to shut it down.

    http://www.bloomberg.com/news/2012-01-17/electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy.html

    A shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50 percent and reduced investment in costlier sources of energy.

    With abundant new supplies of gas making it the cheapest option for new power generation, the largest U.S. wind-energy producer, NextEra Energy Inc. (NEE), has shelved plans for new U.S. wind projects next year and Exelon Corp. (EXC) called off plans to expand two nuclear plants. Michigan utility CMS Energy Corp. (CMS) canceled a $2 billion coal plant after deciding it wasn’t financially viable in a time of “low natural-gas prices linked to expanded shale-gas supplies,” according to a company statement.

    Mirroring the gas market, wholesale electricity prices have dropped more than 50 percent on average since 2008, and about 10 percent during the fourth quarter of 2011, according to a Jan. 11 research report by Aneesh Prabhu, a New York-based credit analyst with Standard & Poor’s Financial Services LLC. Prices in the west hub of PJM Interconnection LLC, the largest wholesale market in the U.S., declined to about $39 per megawatt hour by December 2011 from $87 in the first quarter of 2008.

    Power producers’ profits are deflated by cheap gas because electricity pricing historically has been linked to the gas market. As profit margins shrink from falling prices, more generators are expected to postpone or abandon coal, nuclear and wind projects, decisions that may slow the shift to cleaner forms of energy and shape the industry for decades to come, Mark Pruitt, a Chicago-based independent industry consultant, said in a telephone interview.
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    Jan 18, 2012 2:51 AM GMT
    the cost of electricity has nothing to do with opposition to shale gas.

    You are a very stupid boy.

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    Jan 18, 2012 2:55 AM GMT
    Upper_Cdn saidthe cost of electricity has nothing to do with opposition to shale gas.

    You are a very stupid boy.

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    icon_lol.gif


    And you're a racist stupid prick if you can't even understand the relationship between supply and demand with the intersect being price. Do others in the NDP understand your position on racism?

    Sounds like it's true what they say... scratch a socialist...

    For others for reference -
    http://www.realjock.com/gayforums/2071481/
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    Jan 18, 2012 4:40 AM GMT
    riddler78 saidSo naturally there are environmentalists and Democrats who want to shut it down.

    http://www.bloomberg.com/news/2012-01-17/electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy.html

    A shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50 percent and reduced investment in costlier sources of energy.

    With abundant new supplies of gas making it the cheapest option for new power generation, the largest U.S. wind-energy producer, NextEra Energy Inc. (NEE), has shelved plans for new U.S. wind projects next year and Exelon Corp. (EXC) called off plans to expand two nuclear plants. Michigan utility CMS Energy Corp. (CMS) canceled a $2 billion coal plant after deciding it wasn’t financially viable in a time of “low natural-gas prices linked to expanded shale-gas supplies,” according to a company statement.

    Mirroring the gas market, wholesale electricity prices have dropped more than 50 percent on average since 2008, and about 10 percent during the fourth quarter of 2011, according to a Jan. 11 research report by Aneesh Prabhu, a New York-based credit analyst with Standard & Poor’s Financial Services LLC. Prices in the west hub of PJM Interconnection LLC, the largest wholesale market in the U.S., declined to about $39 per megawatt hour by December 2011 from $87 in the first quarter of 2008.

    Power producers’ profits are deflated by cheap gas because electricity pricing historically has been linked to the gas market. As profit margins shrink from falling prices, more generators are expected to postpone or abandon coal, nuclear and wind projects, decisions that may slow the shift to cleaner forms of energy and shape the industry for decades to come, Mark Pruitt, a Chicago-based independent industry consultant, said in a telephone interview.
    "electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy" oh yeah? Read todays headlines:

    FPL rates going up, customers in southwest Florida not happy
    http://www.winknews.com/Local-Florida/2012-01-17/FPL-rates-going-up-customers-in-southwest-Florida-not-happy

    "Florida Power and Light told state regulators on Tuesday that it wants to raise its base rate by $695 million annually. Passing the buck to customers means an increase of about $7 each month beginning in 2013. FPL users are not thrilled.
    The reason for the increase, FPL says the rising cost of doing business and needing to pay on future projects"

    Yep.. those electric rates are REALLY dropping, aint they?

    Me thinks yer full of shit.
  • Webster666

    Posts: 9217

    Jan 18, 2012 7:27 AM GMT
    Rates here in San Francisco have, literally, DOUBLED, in the past 6 months.

    I agree that you're full of shit.
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    Jan 18, 2012 7:43 AM GMT
    TropicalMark said
    riddler78 saidSo naturally there are environmentalists and Democrats who want to shut it down.

    http://www.bloomberg.com/news/2012-01-17/electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy.html

    A shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50 percent and reduced investment in costlier sources of energy.

    With abundant new supplies of gas making it the cheapest option for new power generation, the largest U.S. wind-energy producer, NextEra Energy Inc. (NEE), has shelved plans for new U.S. wind projects next year and Exelon Corp. (EXC) called off plans to expand two nuclear plants. Michigan utility CMS Energy Corp. (CMS) canceled a $2 billion coal plant after deciding it wasn’t financially viable in a time of “low natural-gas prices linked to expanded shale-gas supplies,” according to a company statement.

    Mirroring the gas market, wholesale electricity prices have dropped more than 50 percent on average since 2008, and about 10 percent during the fourth quarter of 2011, according to a Jan. 11 research report by Aneesh Prabhu, a New York-based credit analyst with Standard & Poor’s Financial Services LLC. Prices in the west hub of PJM Interconnection LLC, the largest wholesale market in the U.S., declined to about $39 per megawatt hour by December 2011 from $87 in the first quarter of 2008.

    Power producers’ profits are deflated by cheap gas because electricity pricing historically has been linked to the gas market. As profit margins shrink from falling prices, more generators are expected to postpone or abandon coal, nuclear and wind projects, decisions that may slow the shift to cleaner forms of energy and shape the industry for decades to come, Mark Pruitt, a Chicago-based independent industry consultant, said in a telephone interview.
    "electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy" oh yeah? Read todays headlines:

    FPL rates going up, customers in southwest Florida not happy
    http://www.winknews.com/Local-Florida/2012-01-17/FPL-rates-going-up-customers-in-southwest-Florida-not-happy

    "Florida Power and Light told state regulators on Tuesday that it wants to raise its base rate by $695 million annually. Passing the buck to customers means an increase of about $7 each month beginning in 2013. FPL users are not thrilled.
    The reason for the increase, FPL says the rising cost of doing business and needing to pay on future projects"

    Yep.. those electric rates are REALLY dropping, aint they?

    Me thinks yer full of shit.


    It really depends on how and where it's generated. Obviously some power companies use things like coal, oil and other.
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    Jan 18, 2012 12:34 PM GMT
    riddler78 said
    TropicalMark said
    riddler78 saidSo naturally there are environmentalists and Democrats who want to shut it down.

    http://www.bloomberg.com/news/2012-01-17/electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy.html

    A shale-driven glut of natural gas has cut electricity prices for the U.S. power industry by 50 percent and reduced investment in costlier sources of energy.

    With abundant new supplies of gas making it the cheapest option for new power generation, the largest U.S. wind-energy producer, NextEra Energy Inc. (NEE), has shelved plans for new U.S. wind projects next year and Exelon Corp. (EXC) called off plans to expand two nuclear plants. Michigan utility CMS Energy Corp. (CMS) canceled a $2 billion coal plant after deciding it wasn’t financially viable in a time of “low natural-gas prices linked to expanded shale-gas supplies,” according to a company statement.

    Mirroring the gas market, wholesale electricity prices have dropped more than 50 percent on average since 2008, and about 10 percent during the fourth quarter of 2011, according to a Jan. 11 research report by Aneesh Prabhu, a New York-based credit analyst with Standard & Poor’s Financial Services LLC. Prices in the west hub of PJM Interconnection LLC, the largest wholesale market in the U.S., declined to about $39 per megawatt hour by December 2011 from $87 in the first quarter of 2008.

    Power producers’ profits are deflated by cheap gas because electricity pricing historically has been linked to the gas market. As profit margins shrink from falling prices, more generators are expected to postpone or abandon coal, nuclear and wind projects, decisions that may slow the shift to cleaner forms of energy and shape the industry for decades to come, Mark Pruitt, a Chicago-based independent industry consultant, said in a telephone interview.
    "electricity-declines-50-in-u-s-as-shale-brings-natural-gas-glut-energy" oh yeah? Read todays headlines:

    FPL rates going up, customers in southwest Florida not happy
    http://www.winknews.com/Local-Florida/2012-01-17/FPL-rates-going-up-customers-in-southwest-Florida-not-happy

    "Florida Power and Light told state regulators on Tuesday that it wants to raise its base rate by $695 million annually. Passing the buck to customers means an increase of about $7 each month beginning in 2013. FPL users are not thrilled.
    The reason for the increase, FPL says the rising cost of doing business and needing to pay on future projects"

    Yep.. those electric rates are REALLY dropping, aint they?

    Me thinks yer full of shit.


    It really depends on how and where it's generated. Obviously some power companies use things like coal, oil and other.
    Your article states OTHERWISE..................

    Sorry.. EPIC FAIL!
  • Posted by a hidden member.
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    Jan 18, 2012 7:00 PM GMT
    riddler78 said
    Upper_Cdn saidthe cost of electricity has nothing to do with opposition to shale gas.

    You are a very stupid boy.

    icon_evil.gif



    icon_lol.gif


    And you're a racist stupid prick if you can't even understand the relationship between supply and demand with the intersect being price. Do others in the NDP understand your position on racism?

    Sounds like it's true what they say... scratch a socialist...

    For others for reference -
    http://www.realjock.com/gayforums/2071481/



    i mock you not for your race stupid boy but for your stupidity.

    Unless it is racist to expect your children to not embrass your family. icon_rolleyes.gif


    But if that is all you have - go for it.

    My kind of "racism "(shaming you for not living up to the high standards typical of Asian families ) is far less harmful than your stupidity - as mine is predicated on respect for the sense of honour and intellectualism of one of our planet's oldest civilizations, while yours is just - stupidity.



    back on point -
    just what did the one have to with the other?


    I'lll make piddler a deal - how about we both sit down with his family and we will talk about my racism and see what his father thinks of it.
    icon_lol.gif


  • Posted by a hidden member.
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    Jan 18, 2012 9:04 PM GMT
    Upper_Cdn said
    riddler78 said
    Upper_Cdn saidthe cost of electricity has nothing to do with opposition to shale gas.

    You are a very stupid boy.

    icon_evil.gif



    icon_lol.gif


    And you're a racist stupid prick if you can't even understand the relationship between supply and demand with the intersect being price. Do others in the NDP understand your position on racism?

    Sounds like it's true what they say... scratch a socialist...

    For others for reference -
    http://www.realjock.com/gayforums/2071481/



    i mock you not for your race stupid boy but for your stupidity.

    Unless it is racist to expect your children to not embrass your family. icon_rolleyes.gif


    But if that is all you have - go for it.

    My kind of "racism "(shaming you for not living up to the high standards typical of Asian families ) is far less harmful than your stupidity - as mine is predicated on respect for the sense of honour and intellectualism of one of our planet's oldest civilizations, while yours is just - stupidity.



    back on point -
    just what did the one have to with the other?


    I'lll make piddler a deal - how about we both sit down with his family and we will talk about my racism and see what his father thinks of it.
    icon_lol.gif




    Since you have apparently have an inability to read, I'll repeat myself:

    And you're a racist stupid prick if you can't even understand the relationship between supply and demand with the intersect being price. Do others in the NDP understand your position on racism?

    Sounds like it's true what they say... scratch a socialist...

    For others for reference -
    http://www.realjock.com/gayforums/2071481/