Getting off the grid; State buildings (CPUC!!) experiment with on-site power systems

San Francisco Chronicle ^ | February 19, 2003 | Dan Levy, Chronicle Staff Writer

[Robert357]

....With memories still fresh from the energy crisis that sent California's electricity prices soaring, commercial landlords are beginning to install on- site power systems, known as distributive generation, as a way to lessen dependency on the Pacific Gas and Electric Co. grid.

.....The state of California could end up running the most influential experiment with on-site power, with tens of millions of square feet of office space potentially using the technology.

So far, the state has installed pilot systems in the state office building on Golden Gate Avenue, the Public Utilities Commission headquarters on Van Ness Avenue and the Elihu Harris building in Oakland.

"If the state decides this is a good business, we'll start building them into our new buildings," said Randy Ferguson, head of energy management for the General Services Agency, which runs state buildings.

The on-site systems in the three state buildings have saved about $80,000 annually in energy costs so far, Ferguson said.

There's also an environmental justification for the generators, proponents say.

On-site systems run on natural gas during peak demand hours, producing electricity that augments the electricity supply being taken off the grid. They are designed so that waste heat produced by the system is recycled to cool and heat the building.

This lessens the load on utilities, which don't have to provide a building's total electricity needs, while conserving energy and saving money.

It's a point not lost on the nation's largest office landlord.

"There is absolutely no reason why this shouldn't be more widespread," said Frank Frankini, senior vice president for development and energy operation at Equity Office Properties, the Chicago real estate investment trust that controls about 125 million square feet of office space around the country.

EOP is seeking approval for an on-site generation plant at One Market, its 1.45 million-square-foot downtown office complex in San Francisco. The company has developed distributive generation systems in nine other buildings in Massachusetts, New York and Illinois -- all of which have deregulated their electricity market.

If approved, the One Market system could help EOP save 10 to 20 percent on its energy bills, Frankini said.

...The surge in distributive generation has its roots in the deregulation of California's energy market and the resulting crisis two years ago. Companies were beset by wildly inflated electricity prices and lost critical computerized data files when rolling blackouts shut down their power supplies.

Even with the nightmare stories from the crisis, few landlords are contemplating a full break from the PG&E grid.

...The Public Utilities Commission, for its part, is encouraging distributive generation development. Its own building on Van Ness Avenue has an on-site plant.

Commissioner Jeff Brown said that because large energy users are increasingly choosing to take less electricity from the grid, smaller users are in danger of paying more for the power contracts already signed with PG&E and other utilities.

As a result, the PUC might impose a surcharge on the energy produced by most distributive generation systems, Brown said. The idea is still in the proposal phase.

"People want to set up their own plants on site, but does this mean we allow another class of people to pay through the nose for these power contracts?" Brown said. "It's quite a controversial subject."

"All the indications we have from the governor's office and the Legislature is that the state will be distributive generation-friendly," said Dan Cashdan, chief executive of RealEnergy.

[Robert357]

OK, so even the CPUC is trying to avoid paying for the power bonds and Davis' mistakes during the Energy Crisis. I wonder if the rating agencies and bond holders know this?

Inquiring minds want to know!

[Robert357]

Well, I guess that the price of electricity is getting so high in California that even the California Public Utility Commission building is trying to beat the high costs that have been embedded into the electric rates by the CPUC.

Hmmm, that is hypocracy isn't it? No, wait may be it is just a conflict of interest... No.... Oh, never mind.

[FreeTheHostages]

not breaking news

[Robert357]

Excuse me, but it was published today and is a new story.
Could you provide a definition for "breaking news?"

[FreeTheHostages]

Hi. My definition of "breaking news" probably isn't as relevant as the Admin Moderator's definition, which is contained in this recent post asking people -- in these times of trouble -- to be selective on "breaking news" posts. The thread is here: http://www.freerepublic.com/focus/news/842334/posts

I recommend you read the original post for another reason: it's just hilariously funny! Whichever admin wrote it has a very very good sense of humor. :) But to the extent there is a definition, it's contained in that thread.

Hope you have a good day. Don't mean no harm: it's just that it's not breaking news. It's certainly a useful post and I'm glad you took the time to share it.

[Willie Green]

When electric power is banned, only the State will have Power.

Build more nukes.

[FreeTheHostages]

For the rest of the thread's benefit, the Admin's general view is:

Please, do not post something in Breaking News because you think it is something you want people to see. Place something in Breaking News only if it is

Something the networks would interrupt their programming to say,
The networks would interrupt their programming to say if they weren't overwhelmingly liberal,
Something that honestly would (not should, would) be of interest to majority of self-described conservatives
Official chapter announcements

Or things along those lines. Don't consider that a list of rules, but of guidelines. But act as if the guidelines matter, please. [strike out:And flame the heck out of people that don't.] And provide appropriate feedback to people who don't.

[doug from upland]

Here is the jewel of Times Square at 4 Times Square -- The Conde Nast Building -- in New York. It was built in 1999 and is called the first green skyscraper. The building has special e-glass and a fuel cell generator for additional power.

[FreeTheHostages]

That's a cool building, actually.

[Willie Green]

Excuse me, but it was published today and is a new story.
Could you provide a definition for "breaking news?"

Something of newsworthy significance that's happening RIGHT NOW and hasn't been published or broadcast in any of the news media.

[FreeTheHostages]

"that's happening RIGHT NOW"

Yes, or at least breaking right now.

But I don't mean to hijack the thread. It's still a good post. Let's return to the topic at hand:

JUST HOW SCREWED UP IS CALIFORNIA'S ELECTRICITY MARKET???!

Some days -- y'all can shoot me for saying this -- public power doesn't sound so bad. Doesn't Bonneville have more stable electricity rates? What's so wrong with municipal power systems? Sigh -- I know the answers as to why I'm wrong already. It's just that least municipal systems might give the towns some level of protection from the State . . . . Quite a mess.

[Dog Gone]

As a result, the PUC might impose a surcharge on the energy produced by most distributive generation systems, Brown said.

So, if there is any financial benefit to installing one of these things (and there's no mention of the capital outlay, just the power bill savings), California intends to strip that away by charging you for the power you generate yourself.

Why even bother?

[NativeNewYorker]

Yeah. Wasn't there an article here about how the CA govt pukes wanted to charge people going off-grid an EXIT TAX?

[Willie Green]

What's so wrong with municipal power systems? Sigh -- I know the answers as to why I'm wrong already.

Municiple power systems served many communities in our nation quite well for many, many decades.
The same with the Public Utility model of regulation: they're stocks were considered to be solid Blue Chip investments: a safe and secure income providing investment for "widows and children".
Large scale Government hydroelectric projects have also been quite beneficial: TVA, Hoover Dam, etc. etc.
Count me among those who are skeptical of the "benefits" of deregulation. It seems the only real effect is to reduce available capacity while giving daytraders the opportunity to inflate prices as they strive to strike-it rich Enron style.

[doug from upland]

You want cool buildings? Go to www.skyscrapers.com. It is an amazing site.

[RobRoy]

There is talk of a new solar cell technology that uses silicon "b-b's" embeded between two layers of aluminum foil and laminated between layers of clear plastic. The idea is that it could cover the outside of buldings, especially skyscrapers. I believe it is 10% efficient and significantly cheaper than normal cells. It is said to look like "denim" jeans material and would make for an interesting looking building.

I know there is also a "polimer" based solar cell that is supposed to be really cheap but not nearly as efficient. Both are very flexible.

I do believe that in the next 20 years or so, most, if not all, power will be generated on site, even for private residences.

[Amerigomag]

What is the future of this experiment if the CPUC will consider, next month, a penalty of $0.05/kwh for the power NOT consumed from the grid by virtue of independent sources.

Yes the CPUC is apparently considering penalizing those consumers who elect to escape the government controlled grid by securing their own power through solar or distributed generation.

[doug from upland]

Interesting concept.

[RobRoy]

Actually, I found it here:

http://www.freerepublic.com/focus/news/841923/posts

[CdMGuy]

If it works, the state is going to use it in their new buildings? What new buildings? Gov. Dufus has a hiring freeze in effect (although the state hired 6,000 people after he put it into effect). So, why would the state need new buildings? Is this A-hole in Sacramento going to raise our taxes so he can build more buildings for more state workers? You bet he is going to do so, because his name is Joe Dufus and he wants all your money.