• 4 hours EIA Weekly Inventory Data Due Wednesday, Despite Govt. Shutdown
  • 8 hours Oklahoma Rig Explodes, Leaving Five Missing
  • 10 hours Lloyd’s Sees No Room For Coal In New Investment Strategy
  • 13 hours Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 15 hours Libya’s NOC Restarts Oil Fields
  • 16 hours US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 4 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 4 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 4 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 4 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 5 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 5 days Kinder Morgan Delays Trans Mountain Launch Again
  • 5 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 6 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 6 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 6 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 6 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 6 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 7 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 7 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 7 days Nigeria Among Worst Performers In Electricity Supply
  • 7 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
Alt Text

Luxury Automakers Pivot To EVs

As the race for electric…

Alt Text

Saudi Arabia Looks To Test EVs In Harsh Climate

Saudi Arabia’s state-owned electricity company…

Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Fossil Fuel Producers Stepping up the Fight Against Renewable Energy Sources

Fossil Fuel Producers Stepping up the Fight Against Renewable Energy Sources

A fight brewing over the allocation of costs for transmission lines to connect wind and solar power plants to end users is the latest sign that fossil-fuel electricity producers are stepping up the fight against renewable energy sources.

A coalition of 10 big utilities this week announced it would oppose provisions in Senate bill 1462 that gives the Federal Energy Regulatory Commission authority to broadly allocate costs for long-distance transmission lines linking power sources to power users.

The industry coalition maintains that only those who benefit from the new lines should be obliged to pay for them. Or, putting it another way, a line connecting North Dakota wind farms to Chicago electricity consumers should be built across three intervening states only if those states also benefit from the power.

“Socializing the cost to transport clean energy from some regions will hurt clean energy developers in other regions, and will ultimately result in higher energy prices for everyone,” Ralph Izzo, CEO of coalition member PSEG, said in statement. “But if all developers have to include all their costs of delivering clean energy to customers, then they will seek to provide best overall value to customers.”

FERC has lobbied for this authority in order to promote renewable energy nationwide and to overcome the transmission bottlenecks arising from the regional decision-making in the industry. The Senate bill, known as the American Clean Energy Leadership Act, passed out of committee last June with bipartisan support.

As wind and other forms of renewable energy become a bigger factor in the nation’s electricity markets, traditional producers are fighting back against what they claim are unfair advantages.

In a front-page story this week, The Wall Street Journal described a feud in Texas where operators of natural gas-fired plants are trying to remove the exemption wind power producers have from paying a penalty when they fail to deliver their promised amount of electricity into the state’s grid because the wind did not blow as forecast.

Every producer commits a certain amount each day and all producers except wind power must pay a penalty if they don’t meet that commitment. For now, state authorities have rejected a penalty for wind producers, but alternative energy now faces stiffer opposition in Texas.

By Darrell Delamaide




Back to homepage


Leave a comment
  • Anonymous on March 03 2010 said:
    Intervening states can benefit from regional economic activity even if they are not using electricity. The entire utility system is an expensive gift to energy producers and utilities need to realize that their customers are the consumers, not the producers.

    Now an arguement could be made against deals with wind companies where they are sheltered from the consequences of lower than expected production - it would depend on whether the losses from this practice are enough to outway benefits from this form of energy. Frankly, if you are not going to have a market driven system from start to finish then the parts which are controled by the government need to take the interests of the people into account. In addition to the direct price of energy, factors include, the over all price of fossil fuels (which could be lowered by renewables and affect both the economy and security) and air quality.

    Wind is far from my favorite energy source and all renewables should be able to function without large government subsidies but when fossil fuel electricity producers have transmission lines run right up to their door because of government funding they hardly have a right to whine about others getting this also.
  • Anonymous on June 30 2010 said:
    Now an arguement could be made against deals with wind companies where they are sheltered from the consequences of lower than expected production - it would depend on whether the losses from this practice are enough to outway benefits from this form of energy. Frankly, if you are not going to have a market driven system from start to finish then the parts which are controled by the government need to take the interests of the people into account. In addition to the direct price of energy, factors include, the over all price of fossil fuels (which could be lowered by renewables and affect both the economy and security) and air quality.
  • Anonymous on July 08 2010 said:
    Texas is known as the state with the largest wind energy capacity in the United States, and if it were a country, it would rank sixth in the world. On the other side of the coin, the most recent data from U.S. Energy Information Administration shows that the state of Texas is being the largest emitter of carbon dioxide in the country, over 60% higher than California which ranks second in emissions but has a population nearly 50% higher than Texas. With such a record, it is no surprise that Texas Governor Rick Perry rejects the scientific evidence linking greenhouse gas emissions and climate change and marched the Environmental Protection Agency in federal court to prevent regulation of greenhouse gases.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News