Posted on 12/19/2007 10:31:51 AM PST by Reaganesque
That's true, but note that the midwest and plains get tornados and ice storms which also tear things up. And the northeast gets to generate a great deal of their power with Oil and Natural Gas - both much more expensive than coal or nuclear.
I think that you'll find that generation costs are a greater influence on utility rates than distribution costs in most cases. Both contribute, for certain, but a plant is a very expensive project just to build and it still needs maintenance and fuel. Of course, we can't discount government-imposed fees and hidden taxes either. High-tax states are certain to extract a bit out of each electric bill, whether it is itemized or not. Just like the do for phone bills.
Here's a 10 year old article:
TVA says its annual public subsidy is about $100 million. A PHB analysis says multiply that by at least 10.
http://findarticles.com/p/articles/mi_qa3650/is_199705/ai_n8763068
and
The TVA has a complicated financial structure, historically funded through a combination of power and nonpower revenues, borrowing, and direct Federal appropriations. In comparison with the interest rates paid by investor-owned utilities (IOUs), TVA is estimated to have benefited from Government support of $77 million to $248 million (1999 dollars) in 1998 because of the utility's artificially low borrowing costs. Asset support to the TVA ranges from $228 million to $557 million.
http://www.eia.doe.gov/oiaf/servicerpt/subsidy1/app_b.html
Remember, the TVA doesn't pay income taxes (an indirect subsidy) or real estate property tax) " TVA does not own real property; it holds real property as an agent for the United States. (Any reference in this Annual Report on Form 10-K (“Annual Report”) to TVA facilities or the ownership by TVA of facilities or real property refers to property held by TVA but owned by the United States.)" ( (see the latest 10K here: http://investor.shareholder.com/tva/sec.cfm )
$150 for 1000kwh is 15 cents per kwh.
But the 5 cent rate in the article undoubtedly means the nukeplant producing 200kw continuously. That is how a powerplant is priced — by peak output. Your home wouldn’t use anywhere near enough power to keep that nuke busy. At 200kw, it is capable of producing 144,000kwh per month — or enough for 144 homes at the rate you are using.
Lots of Florida condo associations could make it pay off.
I think we’re like second to Hawaii, at least we used to be. I’d take a set-up of hamsters in wheels at this point.
Yes, as long as they were on the grid. The problem is that a 200kw plant is good for 100+ houses based on a load averaged over 24 hours a day, but it is only enough for about 20 houses during peak usage. Being on a grid with net metering, it would work out OK. For a neighborhood completely off the grid, it would be very expensive power.
As I said, they do benefit from the use of tax-free bonds, meaning lower borrowing costs (tax-free bonds can get away with a lower interest rate due to the fact that the holder pays no income tax on their earnings). I won't deny that advantage as it is significant.
But note that most utilities have benefitted from the issuance of tax-free bonds for such projects as government-mandated air pollution controls on power plants. That offsets the advantage somewhat, though obviously not totally.
TVA also benefits from not having to pay corporate income tax, since they are a government agency.
However, TVA does pay "equivalent" property tax to state and local governments within their service area. In 2006, TVA paid $376 million in "tax-equivalent" payments to state and county governments out of an operating income of $1,603 million.
No points from greenies.They are pure Luddites and anything that accomplishes ostensibly green goals by advancing technology is EVIL and must be opposed.
Once upon a time our immigration policies were designed to skim off the cream of the world’s universities. Now they are designed to pull the dregs out from under the world’s societies or to take from the societies that are all dregs.
This can solve the energy crises, that is if government gets out of the way and lets Toshiba build these things.
This sounds like a scrappleface article.
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According to Intrade, the winner of the December 12th GOP debate was... Duncan Hunter.
http://www.freerepublic.com/focus/f-news/1938773/posts
My last bill was 10.26 cents per kwh.
TVA has gone up twice in last three years and now has permission to add fuel surcharges. Claim drought has reduced hydro portion.
The hydro situation is correct - eastern Tennessee has had a very significant shortage of rainfall since last spring. They've gotten a little relief lately, but nowhere near enough to replenish the area. TVA's Hydro generation relies on good flow on the Tennessee River. Rainfall on the western part of the state was adequate, but there is more hydro generation in the eastern part of Tennessee than the western part. Plus, part of the river flow in the west relies on flow from the upstream eastern region.
TVA is also responsible for keeping river depth at a level that will allow navigation for barge traffic and recreation. They can't generate to the point that navigation is inhibited.
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