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Archive for June, 2012

The Electric Reliability Council of Texas, Inc. (ERCOT), system operator for the state’s bulk transmission grid, is asking consumers and businesses to reduce their electricity use during peak electricity hours from 3 to 7 p.m. today.

Consumers can help by shutting off unnecessary lights and electrical appliances between 3 and 7 p.m., and delaying laundry and other activities requiring electricity-consuming appliances until later in the evening. Other conservation tips from the Public Utility Commission’s “Powerful Advice”  include:

  • Turn off all unnecessary lights, appliances, and electronic equipment.
  • When at home, close blinds and drapes that get direct sun, set air conditioning thermostats to 78 degrees or higher, and use fans in occupied rooms to feel cooler.
  • When away from home, set air conditioning thermostats to 85 degrees and turn all fans off before you leave. Block the sun by closing blinds or drapes on windows that will get direct sun.
  • Do not use your dishwasher, laundry equipment, hair dryers, coffee makers, or other home appliances during the peak hours of 3 to 7 p.m.
  • Avoid opening refrigerators or freezers more than necessary.
  • Use microwaves for cooking instead of an electric range or oven.
  • Set your pool pump to run in the early morning or evening instead of the afternoon.

Businesses should minimize the use of electric lighting and electricity-consuming equipment as much as possible.   Large consumers of electricity should consider shutting down or reducing non-essential production processes.

How to Track Electricity Demand

  • View daily peak demand forecast and current load at  http://www.ercot.com/
  • View daily peak demands by the hour at this link
  • Get real-time notices of energy emergency alerts by following ERCOT on Twitter

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The following story on testimony provided to the Texas House Energy Resources Committee about the threat the proposed Tar Sands pipeline poses for the state was reprinted with the permission of the Texas Energy Report.

House Energy Resources Committee Chairman Jim Keffer on Tuesday promised environmental advocates warning of dangers posed by pipelines carrying Canadian tar sands – especially under outdated Texas regulations – that his committee will do its “due diligence’ on the issue.

“You have certainly helped me in things I didn’t know. I want to assure you this committee is going to take everything you said very seriously with the utmost respect it deserves,” Keffer (R-Eastland) said during a day-long hearing on Texas energy and regulations governing it.
Comparing pipeline safety and transparency to his landmark legislation on public disclosure of hydraulic fracturing chemicals, Keffer said he is committed to ensuring “we disclose everything we can to really help the industry going forward.
“We will certainly do it with all due diligence and make sure it is done right,” he added.
He lamented that no one from the pipeline industry attended the hearing to answer questions raised in detail about the safety of pipelines carrying tar sands, also known as oil sands, and commonly referred to as diluted bitumen when in transport.
Julia Trigg Crawford, a family farmer battling TransCanada Corp.’s use of eminent domain to condemn easements on her farm for the controversial Keystone XL Pipeline, testified that diluted bitumen is not akin to heavy Venezuelan crude, as many in the industry insist. (Texas Railroad Commissioner Barry Smitherman also made the comparison earlier in the hearing.)
“Please don’t allow our land to be taken and then endanger it by allowing old standards to be used for something that is an entirely new product that’s going to come across Texas soil. One does not have to pull back many layers to discover that Canadian tar sands are not your mother’s crude oil,” Crawford told the committee.
Noting that she’s learned TransCanada could begin pipeline construction on her land as early as August, Crawford said state officials have an obligation to ensure the “highest and most stringent” pipeline construction regulations are in place when transporting diluted bitumen.
She underlined that her family is fighting TransCanada’s use of eminent domain law to condemn easements on her land, claiming it is a common carrier. Diluted bitumen is not one of seven products listed in the state’s natural resources code that fall under current pipeline regulations, she pointed out.
The Crawford family’s fight against TransCanada will be aired next at a hearing July 18 in the Lamar County Court of Law with Judge Bill Harris presiding, she said. The family will argue the company cannot claim common carrier status in order to employ eminent domain. It also has raised legal issues regarding Native American artifacts that could be disturbed by the proposed pipeline construction route.
“The proposed pipeline that’s going to cross my land will transport Canadian tar sands,” she said. “This product has never come across our soil before. Our current state regulations have never had to address this specific product,” Crawford said, adding officials need to study ample existing data to prevent a repeat of a tar sands catastrophe in Michigan’s Kalamazoo River. “We really don’t know what we’re up against with this product. I don’t think we should use our Texas lands and resources as guinea pigs.”
Trevor Lovell, environmental program coordinator of Public Citizen’s Texas office, told the committee that he coauthored an op-ed in the Dallas Morning News warning about Enbridge Inc.’s repurposing of the 36-year-old Seaway Pipeline to carry a “poisonous mix of chemicals and tar sands bitumen up to 20 times more toxic than traditional crude.” The pipeline crosses three major water sources for the Dallas-Fort Worth area.
The articl,e co-written by Public Citizen-Texas Executive Director, Tom “Smitty” Smith, raised several concerns: tar sands are solid at ambient temperatures, far more acidic than crude oil, and chemical diluents must be added to move them through a pipeline. Yet companies like Enbridge have refused to disclose the chemical mixes, calling them proprietary information.
They added that data from tar sands pipeline spills show the blend is heavy in benzene at toxic levels and other chemicals that are “far more deadly” than contents in ordinary crude oil pipelines.
While a chemical engineer formerly employed at Mobil responded that he agreed with the op-ed points on dangers posed by the Seaway pipeline conversion, Lovell said, a dueling op-ed submitted by an Enbridge executive did not address even one of the 10 key points Public Citizen had made.
Instead, it attacked the two authors, accusing them of distortion and misinformation. It cited statistics showing that no tar sands pipelines have ruptured due to corrosion, a point Lovell said the two did not assert.
After the hearing, Lovell said he felt “pretty good” about Keffer’s pledge to investigate the subject further to ensure safety and continued economic contributions from oil and gas activities in the state.
“It was very encouraging,” Lovell told Texas Energy Report. “I think that Keffer’s done a lot of leadership on that committee. He didn’t make any statements he can’t back up. He framed it in the terms he’s comfortable with, which is protecting the industry from itself, so to speak.
“At the end of the day,” he added, “what we care about is safety on these pipelines.”

By Polly Ross Hughes

Ramrodded by veteran reporter Polly Hughes, the Texas Energy Report’s Energy Buzz specializes in what is happening on the ground in Texas energy ranging from dedicated coverage of the Texas regulatory agencies to battles in the Legislature that affect the future of the industry.

Copyright June 21, 2012, Harvey Kronberg, www.texasenergyreport.com, All rights are reserved.  Reposted by TexasVox.org with permission of the Texas Energy Report.

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We’ve recently realized that TCEQ allowed stock from Waste Control Specialists (WCS) sister company, Titanium Metals Corp to be put up as the financial assurance for their radioactive waste dump and that stock isn’t performing well right now. So we want to know, where does that leave the state of Texas and its citizens?

We hope to have this addressed at the upcoming Texas Low Level Radioactive Waste Disposal Compact Commission (Compact Commission) meetings that are coming up this week.

  • Thursday, June 28th 5:30 PM – Joint subcommittee meeting at the Capitol – E1.028 Technical and Legal Committees
    (The process for addressing applications is yet to be determined, although the applications could be voted on the next day)
  • Friday, June 29th – 9 AM Full Compact Commission Meeting – at the Capitol – E1.028
    The Friday meeting should be televised live (but won’t be archived) and will be available for viewing at “Texas legislature online

Do come to these hearings if you are able.

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The following story on the threat the proposed Tar Sands pipeline poses for the state was reprinted with the permission of the Texas Energy Report.

GROUP WARNS OF TEXAS OIL SANDS PIPELINE THREAT

Enbridge says public data don’t back up spill concerns

As the Environmental Protection Agency announced the re-opening of parts of the contaminated Kalamazoo River in Michigan Thursday, environmental activists in Texas warned that tar sands could contaminate water supplies in the Lone Star State as well.

Noting that Enbridge Inc. “was allowed to push tar sands through” a 43-year-old pipeline in Michigan leading to a spill “nearly impossible” to clean up, environmental experts at Public Citizen – Texas say the same could happen in Texas.

Enbridge, they say, has begun pumping the “same toxic diluted bitumen” through the 36-year-old Seaway pipeline, which runs under three major drinking water sources for the Dallas-Fort Worth area.

“All Texans should be deeply troubled,” the group said in a statement, noting similarities between the Kalamazoo and Texas pipelines now transporting tar sands, also known as oil sands.

“The reversal and repurposing of the aging Seaway pipeline was accomplished without any inspection or oversight from state or federal agencies despite the fact that the new tar sands feedstock is substantially more likely to cause a pipeline rupture, contains a far greater concentration of toxic diluents, and is made up primarily of Canadian bitumen which sinks in water, making it almost impossible to clean up,” Public Citizen said in a statement.

“I don’t think it’s that simple,” Larry Springer, an Enbridge spokesman based in Houston, told Texas Energy Report.

“We went back ourselves and looked and did not find any examples of pipelines that failed from internal corrosion in the last 10 years that were carrying oil that was produced in the Canadian oil sands,” he said.

Springer cites the Pipeline and Hazardous Materials Safety Administration (PHMSA) as the source of data backing up that claim. He also noted that the pipeline that failed in Michigan was from a much older era.

By Polly Ross Hughes

Ramrodded by veteran reporter Polly Hughes, the Texas Energy Report’s Energy Buzz specializes in what is happening on the ground in Texas energy ranging from dedicated coverage of the Texas regulatory agencies to battles in the Legislature that affect the future of the industry. 

Copyright June 21, 2012, Harvey Kronberg, www.texasenergyreport.com, All rights are reserved.  Reposted by TexasVox.org with permission of the Texas Energy Report. 

AND THIS IS WHAT WE CAN LOOK FORWARD TO:

[youtube=http://www.youtube.com/watch?v=63M8xKSN77c]

A photo collage video by Michelle Barlond-Smith, a resident of Battle Creek, Michigan, near the Enbridge pipeline spill.

In  the meantime, an Enbridge Tar Sands victim of the Michigan spill, the most expensive in US history, is scheduled to testify on Tuesday, June 26th in front of the House Energy Resources Committee of the Texas Legislature, to describe the human cost of a tar sands pipeline spill.

Michelle Barlond-Smith is a resident of Battle Creek, Michigan, one of the communities hit hardest by the July 2010 rupture in Enbridge’s Line 6B which dumped over 1.1 million gallons of diluted bitumen into the Kalamazoo River. Michelle witnessed firsthand neighbors and friends becoming sick or being hospitalized, has watched communities along the Kalamazoo become ghost towns, and brings a cautionary tale to Texans along the Seaway pipeline from near Dallas down to the gulf coast.  She will be in Texas testifying in front of the House Energy Resources Committee at the public hearing that will address an interim study charge examining state regulations governing oil and gas well construction and integrity and pipeline safety and construction and determine what changes should be made, if any, to ensure that the regulations are adequate to protect the people of Texas and its natural resources.

This committee hearing will begin at 9:00 am on Tuesday, June 26 in the Texas capital extension in room E1.010.  The committee will hear invited testimony only.  No public testimony will be taken, but the public is permitted to attend, and we encourage you to do so.
     

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If you think that bonuses are supposed to reward success, you’re not alone, but the reality is more bizarre.  While Energy Future Holdings, formerly TXU, of Dallas continues its downward spiral toward bankruptcy, it’s handing out millions in bonuses to its executives.

The bonuses are called retention bonuses and are supposed to keep executive from fleeing the company as its prospects worsen.  At first glance, that makes some sense.  Recruiting replacements might be difficult.  After all, who is going to want to take charge of a failing company?  But then, who would want to hire an executive whose last job was running a company that failed so spectacularly?  And if bonuses increase as the company does worse, what incentive is there to improve performance?  Against the basic principle of capitalism, this system actually provides an incentive to fail.

Meanwhile, Energy Future Holdings is still making huge payments to the private equity holders that are responsible for over leveraging the company in the first place.  Henry Roberts Kravis, CEO of KKR received $30 million and his cousin and co-CEO, George Roberts received $29.9 million in compensation for 2011.  Clearly, the survival of Energy Future Holdings is not the main concern of either these private equity barons or the executives at the company, or else they wouldn’t be squeezing personal profit out of it when it’s floundering.

While employees at Energy Future Holdings and its subsidiaries may be worrying about what the future holds, those at the top are cashing in big.  No government payments or loans to the company or altering of the energy market will change that dynamic.

Don’t let your money be used to line the pockets of failing executives and private equity CEOs.

If you live in Texas, please sign our petition urging all Texas Legislators to oppose any public or ratepayer-funded bailout of Energy Future Holdings

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The Texas electric grid operator (ERCOT) has introduced an app for smartphones intended to alert Texas users about emergencies to the electric grid that could trigger rolling blackouts.  This alert system would urge consumers to conserve energy during those times.

In the midst of last summer’s record breaking heat, the Electric Reliability Council of Texas called on Texans to conserve when power generators weren’t able to keep up with extreme demand on several days. That conservation helped ERCOT avoid rolling outages. ERCOT has said it will probably have to call for conservation again this summer.  The new app will notify users of Apple and Android devices when the grid operator needs people to cut back usage to avoid blackouts.

iPhone, iPad and Android users can find the free ERCOT Energy Saver app by searching for ERCOT in the Apple and Google app stores, or you can link to the app below.

ERCOT will also use traditional methods of alerting the public about grid emergencies, but for the tech obsessed – this is a new option.  As for me, armed with my new smart thermostat, its smartphone app and the new ERCOT app, I stand ready to do my part.

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Diesel exhaust causes cancer, declared the World Health Organization’s cancer agency earlier this week.

The new classification was released by an expert panel organized by the International Agency for Research on Cancer (IARC), the cancer arm of the World Health Organization. In 1989, the agency labeled diesel exhaust a “probable” carcinogen. Reclassifying it as carcinogenic puts it into the same category as other known hazards such as tabacco smoke, asbestos and ultraviolet radiation.

While the risk of getting cancer from diesel fumes is small, so many people breathe in the fumes in some way that the science panel said raising the status of diesel exhaust to carcinogen from “probable carcinogen” was an important shift, making diesel emissions as important a public health threat as secondhand smoke.

Fumes from diesel engines affect groups including pedestrians on the street, school children who ride in diesel school buses, commuters who share highways with heavy truck traffic, ship passengers and crew, port workers and fence line communities, railroad workers, truck drivers, mechanics, miners and people operating heavy machinery.

The U.S. government, however, still classifies diesel exhaust as a likely carcinogen, and diesel engine makers and car company officials are quick to say new diesel engines emissions are far cleaner, pointing out emissions from new and retrofitted trucks and buses have been slashed by more than 95 percent for nitrogen oxides, particulate and sulfur emissions.  However further studies should be done to assess any potential dangers even these lower levels of emissions might have on the public.

At this point, the U.S. Environmental Protection Agency has not received any requests to reevaluate whether diesel definitely causes cancer but their assessments tend to be in line with those made by IARC.

In 2001, the Texas legislature created the Texas Emissions Reduction Program (TERP) to reduce emissions from on and off road diesel engines. In 2007, that program was expanded to help school districts retrofit their school bus fleets. So while there have been efforts to reduce diesel emissions in the state, there are many sources of diesel emissions that are still impacting Texas communities that need to be addressed.

TERP legislation is up for review this upcoming legislative session. This new declaration by the World Health Organization makes it imperative that TERP not only be reauthorized, but be expanded to include more classes of diesel engines.

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No Bailout for Energy Future HoldingsEnergy Future Holdings, formerly TXU, of Dallas might be looking for a handout – from you.

Back in January, Moody’s changed Energy Future Holdings Corp’s rating outlook to negative and made it impossible to ignore what anyone who had been paying attention to the company’s quarterly reports already knew: Energy Future Holdings is on a path heading towards bankruptcy.  Now there are rumors floating around that the company may ask the Texas Legislature to approve a public or ratepayer-funded bailout.

Neither option would benefit majority of Texas citizens and we urge everyone to sign our petition in opposition to any bailout proposal for Energy Future Holdings

You might wonder how the profitable TXU end up as the failing Energy Future Holdings.  The answer is twofold.

First, in Texas, electricity prices are set based on the price of natural gas.  When natural gas prices were high, this meant that coal-fired power plants could reap additional profit.  This made TXU an attractive acquisition because the company owned many coal-fired power plants.  But now, natural gas prices have plummeted and those same coal-fired power plants, especially the oldest and most inefficient, are dragging Energy Future Holdings down.  The private equity investors made a big bet on the wrong energy source.

The second problem is that Energy Future Holdings was acquired in a leveraged buyout.  What that means is that instead of the investors paying the full amount to buy TXU, they financed the deal partially through loans to the company.  While the company has done a good job of staving off the day of reckoning by refinancing many of those loans, many are approaching maturity and additional refinancing options are limited by the negative prospects for the company.

So, while TXU was a profitable company with relatively low debt, Energy Future Holdings is an unprofitable company (because of low natural gas prices) with massive debt (because of the leveraged buyout) that is approaching maturity.  This isn’t a good combination and some people are going to lose money on the deal (many already have).  However, those losses shouldn’t be placed on Texas taxpayers or ratepayers.

Tell your state representatives and senators that you oppose bailing out failed corporations.

Most of us have to live with the consequences of our bad decisions.  Help us make sure that Wall Street and private equity firms must do the same.

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