All the Other Stuff

From each according to their ability…to each according to their need – Part, oh, whatever

First off, I’d just like to thank those who have sent in suggestions so far for “The Right Michigan Solution for Fixing Michigan Roads” (and yes, I have gotten a few already). I’ve got an update that I like to pass along after the fold.

And for the record, the title of this post isn’t referring to these “poor” schemps.

{More below the fold}

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Weasel Words? Really? We can do much better than that!

You people in Lansing are supposed to be Conservatives. Why not try acting like a Conservative for a change?

There is an axiom that everyone has probably heard numerous times already that goes something like this: “Those who fail to learn the lessons of history are doomed to repeat them.”

A friend of mine would add in a second line to that to make it a little bit more interesting…”Those who fail to learn the lesson of history correctly, well they are just plain doomed.”

It strongly looks like were seeing that second line play out here in Michigan after the defeat of Proposal 1.

This time around, though, it doesn’t have to end that way.

{More after the fold}

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Not in today’s market.

While still remaining cautiously optimistic on the results of today’s vote, I would still like to take the high road here and avoid doing “a victory lap”, even one that is well deserved.

That been said, one of the pat responses that I can practically guarantee will come from Lansing in the coming days is the worn out lament that “there is nowhere to cut”.

You know that this is bunk.

I know that this is bunk.

The answers are there.

The clip below is just one example of where substantial savings can be found from Lansing.

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So, this was what we were missing?

Just dusting off one of a few old projects that I’ve had one hell of a time trying to finish up over the past few weeks.

Composing a post on a tablet is relatively easy compared to trying to edit something on video. Even moreso when the truck is moving

Watching the local news this afternoon gave me the final push to finish things up before tomorrow.

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So what exactly is going on here?

This better have something to do with Plan “B”.

 

‘Nuff said!

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Michigan’s February Unemployment Rate Redux

When You Fiddle Data Series, Fiddle All The Correlated Data Series

George Orwell-During Times of Universal Deceit
Remember the startling unemployment announcement from the Michigan Department of Management, Technology, and Budget (DTMB) last month?

  • That Michigan’s February 2015 seasonally adjusted (SA) U-3 unemployment rate had dropped to 5.9% from January’s 6.3%?
  • That the 5.9% February 2015 SA U-3 unemployment rate was down 1.9% from Michigan’s 7.8% February 2014 SA rate?
  • That 88,000 more ‘seasonally adjusted’ Michiganders were working in February 2015 than one year earlier?
  • That the not seasonally adjusted (NSA) 12 month increase in Michigan employment was even better at 101,000?

Well, there is a little problem with these goal-seeked, U.S. Bureau of Labor Statistics (BLS) X-13ARIMA-SEAT massaged unemployment statistics. They simply are not true.

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Clash of Titans, A Right Plan of Action

RightMI Counterattacks!
Part IV – A Right Plan of Action

So how should average middle class Michiganders engage in this electricity debate? What should they demand in the 2015 legislation on electricity? Can they prevent the titans from looting their family budgets?

First and foremost, Michiganders should demand an end to hybrid deregulation. All electricity consumers should be under the same regulatory scheme, with equal options to escape. No favoritism. This aligns the interests of politically potent, large electricity consumers with those of the average Michigander. This creates an effective counterbalance to the political power of the utilities; political power purchased with your electricity payments. Even full regulation is preferable to our current hybrid deregulation scheme.

Michiganders should further demand full deregulation of our electricity market. As regulated entities, utilities have a ‘cost plus’ mindset which relentlessly drives prices higher. Regulatory bodies limit themselves to dampening this drive for higher prices, but do not drive efficiencies which would genuinely control energy costs. Competition-driven efficiencies are very important to Michigan’s economy, which still has a significant, energy-intensive industrial base. Also Michigan’s utilities have not demonstrated any special competence operating their electrical power stations, so competition in the supply of electricity will promote best practices there and lower costs as well. Ultimately, a deregulated grid properly managed is more tolerant of supply shocks because more actors will be supplying the electricity.
wind turbine fire close-up
The RPS should not be renewed at any level. Renewables should not be forcibly subsidized by any ratepayers, overtly or covertly. The current PA 295 regulatory scheme has residential electricity consumers subsidizing renewables through skyrocketing rates, while large consumers escape this burden.  As renewable energy sources become cost effective, they will be welcomed by all parties.

If environmental wackos want their own electricity to come from RPS renewables, let them pay the full cost including base load backup costs. Most renewable sources are intermittent and require expensive base load backup capacity for periods where they cannot generate electricity. The Midwest Independent Transmission System Operator (MISO) historical record shows that Michigan wind power, by far the most significant current RPS component (883 turbines, about 58% of RPS power), was only available 31.5% of the time (termed ‘capacity factor’) during 2011 and 2012. During two months, July and August of 2011, wind was available only available 16% of the time. Most evaluations of the cost effectiveness of wind and solar generation pointedly neglect the costs of base load backup capacity to keep the lights on.  Essentially, wind power capacity has to be backed up by 100% of its rated capacity with fossil-fueled base load capacity to prevent blackouts during zero wind periods, so why bother install wind power (or solar, for that matter) in the first place?  Ratepayers subjected to RPS get to pay the capital costs for twice the generating capacity they actually need.

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Clash of Titans, Viewed from Below

King Kong 1
Part III – Clash of Titans, Viewed from Below

Fortunately, the greed political acumen of DTE and CMS Energy is coming to your rescue. Both utilities are seeking full reregulation of Michigan’s electricity market. They are issuing thinly veiled threats about brownouts ‘reliability’ of supply unless Michigan forces the fortunate 10% back into our utilities’ waiting arms. And with President Obama’s hobbling of coal-fired power stations ramping up, they actually have a point. So the fortunate 10% will have to seriously reengage in Michigan’s electricity rate debate or their electricity costs will skyrocket.

The environmental wackos haven’t been idle either. The new model, term limited, Governor Snyder has evidently made up with our ur-RINO and is now endorsing a 40% RPS by 2040. To keep Michigan’s serfs in line – and avoid impeachment – he is specifically not calling for this to be a mandate, rather calling it a ‘goal’. Coming from Michigan’s Governor, this is a distinction without a practical difference. Snyder appoints the three MPSC commissioners who oversee electricity policy and MPSC operates under the aegis of LARA. Think Governor Duggan, Snyder’s designated successor, will change this policy? Other Michigan politicians are splitting the difference, proposing RPS mandates intermediate between 10% and 40%.

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Clash of Titans Coming to Michigan

After Proposal 1, After Plan B, Electricity Front and Center

godzilla-biollante
Part I: Background

Later this year, Michigan’s electrical utilities are expected to satisfy the 10% Renewable Portfolio Standard (RPS) requirements of PA 295 of 2008. Partial reregulation of electricity in Michigan under the same PA 295 of 2008 denied choice of supplier on 90% of electricity consumption, while exempting large, politically potent, electricity consumers. At the same time, the U.S. EPA is progressively tightening their noose around the neck of the coal industry with an array of ever more restrictive regulations upon coal-fired power plants. A political clash of titans is looming in Michigan.

Taken together, these circumstances will trigger a wild four-way donnybrook pitting electrical utilities, electricity consumers, and environmental wackos against one another later this year. But this is only three parties, so why do you say four-way? Large industrial consumers have substantially escaped the consequences of PA 295, while smaller Michigan consumers – including residential consumers – have experienced the fifth highest rate of electricity cost increases in the nation. These two electricity consuming groups’ interests do not coincide.

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