Article Analysis The article I chose is Solar Energy by PowerLight by John Smith staff writer of Inc. Magazine. The article is about alternative energy sources and deregulation of the industry. The focus of the article is put on a company called PowerLight Corporation in Berkeley, California. This particular $10 million company designs and manufacturers solar electric products. PowerLight Corp. is a very fast growing company over past years and is expected to grow at an even faster rate in years to come. The government in California provides great aid to these alternative energy companies by just about splitting the cost 50/50 with the consumers when alternative energy products are purchased.
Since PowerLight Corp. has been around for some time now they are currently offering 20-year warranties on their products. The article then brings up the issue of deregulation in the industry, leaving the reader to draw his or her own conclusions on the possible and somewhat unpredictable effects it may have when implemented. Undoubtedly, energy is a treacherous business. One can enter the market one year, and have tremendous success, and by the same time the year after they could possibly be bankrupt. Many believe deregulation is the answer to the industrys problem, while others believe it is only the answer to the alternative energy market. Alongside the article from Inc.
Magazine discussing PowerLight Corp. and deregulation, I feel it is necessary to incorporate more information on deregulation to validify and clarify my assessment. I used very small clips of articles and industry news from the Electric Light & Power website to provide more detailed analysis of deregulation including certain laws, minor market data, and recent studies done on the electric power industry. The main goal of the regulatory commissions was to create a reasonable rate structure that would be appealing to both producers and consumers. While this system has worked for many years, it has recently come under heavy criticism, with many people pushing for open competition among electric power producers. Although once believed to be an impossible proposal, competition among electric power producers is a reality in a few areas, such as Massachusetts. The attempt at regulating price in the electric industry is a troublesome one.
The Essay on Energy Make Electric
Energy is the ability to do work. The two different types of energy are kinetic and potential. Kinetic energy is energy in motion and potential energy is energy that is stored. Energy is measured in units which are BTU (British thermal unit) and a joule. The Law of Conservation of Energy states that energy can't be created or destroyed, but it can be changed in form. Heat is a form of energy that ...
The objective is not only to minimize the cost to consumers, but also to create a rate structure that will entice the electric company to remain in the industry. The regulatory commission wants the electric company to have a reason to innovate so that they will be able to provide cheaper power in the future. However, if the commission captures all gains from innovation in the form of lower prices, then the electric company has no incentive to take on any type of innovation. Therefore, a compromise must be reached which would provide sufficient incentives for firms to carry out cost-reducing actions while at the same time ensuring that the price for consumers is not too high. The cost and reliability of electricity supply are critical to business, which means that business in general – as well as the ownership and management of electricity service providers – has an important stake in whether and how to restructure electricity markets. California’s failure in restructuring its electricity market is commonly interpreted to mean that “deregulation does not work.” However, a number of studies have pointed to flaws in the California experience that – if corrected – should allow restructuring to be successful.
The Research paper on International Students Experience at Bluefield State College
As a former international student of Bluefield State College, I want to thank the administration for great support and faculty stuff for outstanding academic experience during past two years. I know that you have biggest interest in well-being of foreign students. Your first priority always was to provide the best experience and support in any situation to every student on campus. The main purpose ...
This study compares the California experience and the successful experience of several other states/countries to provide insights on issues that are critical for success. The analysis is organized around the control parameters that must be set for any electricity system seeking to restructure. Knowing what works as well as what does not will assist business leaders and government officials to promote and adopt policies that lead to efficient electricity markets. As oil and gas prices continue to rise, the sun has apparently set on the development of solar power and other forms of alternative energy, despite official claims that the United States is committed to making them a success. The explosion in oil and gas prices has been attributed to numerous causes, but little attention has been given to the lackadaisical effort to develop alternative fuel sources and the continuous quest by the oil industry to discover more oil. Big oil has both money and power, and it shouldn’t be any surprise how much can be accomplished, or prevented, with such a potent combination.
Two decades have passed since Chile began its pioneering effort to restructure its electricity sector, followed by Argentina and England and Wales approximately a decade later. In almost all of the states and countries that have undertaken restructuring, the results have been at least a qualified success – and often a resounding success. This experience, plus the intellectual appeal of “deregulation” has led twenty-five U.S. states to enact electricity restructuring reform laws and/or regulations. In 1996, when California launched its restructuring efforts, Chile, Argentina, and England and Wales already had accumulated relevant experience. However, much of what could have been learned from this experience was either ignored or discarded. The result was that California’s restructuring has been an unmitigated disaster: 2000 and 2001 had periods of extraordinarily high retail prices and interruptions of service, followed by what appear to be high prices to all endusers for the indefinite future.
The Essay on Steady Oil Price Hike
The article about the rising oil price indicates two main economic concepts: first, “the rule of supply and demand”, and second, that” human wants is insatiable. ” Oil is a natural resource and it is created by nature through thousands of years. Time is a very important element in the production of oil. Despite the fact that oil wells and rigs are discovered and/or pumped, still, the natural ...
This experience has contributed to eight of the twenty-five restructuring states deciding to delay or suspend restructuring activity. California’s basic restructuring legislation, Assembly Bill (AB) 1890, was passed in 1996 and took full effect upon the implementation of retail competition in 1998. Its intent was to increase competition in wholesale and retail electricity markets and, thereby, bring down prices. The restructured electricity sector appeared to be working well until the summer of 2000, when SDG&E (formerly San Diego Gas & Electric, serving San Diego and environs) became free to pass rapidly escalating wholesale electricity prices on to retail customers. The result was retail prices at least double the previous levels. It was only then that most Californians realized that the state was short of generating capacity and that wholesale prices were escalating rapidly.
To a major extent, this was simply a product of bad luck – rapidly escalating natural gas prices which is the dominant prime mover in California electricity), and poor hydroelectric years in both California and the Pacific Northwest. The bad luck, combined with policy failure, produced blackouts, extremely high and volatile retail prices, utility bankruptcy, the collapse of competitive retail markets, and the collapse of the power exchange that was the hub of the wholesale market. While the development of alternative energy sources continues to lag, supporters of the oil industry continue to promote the use of fossil fuels. During a recent House hearing on high gas prices, representatives from the oil industry argued that a possible solution would be to begin drilling in environmentally sensitive regions, such as the Arctic and Rocky Mountains. According to Red Cavaney, president and chief executive officer of the American Petroleum Institute (API), the nation’s energy woes could be resolved if the oil companies were allowed to drill in areas that have been safe-guarded by environmental protection legislation. Already there is congressional support to begin such action.
Senate Energy and Natural Resources Chair Frank Murkowski proposed legislation that would allow oil companies to drill in the Arctic National Wildlife Preserve. A Senate budget measure has already projected $1.2 billion in royalties from the Alaska refuge in 2005, and it recently voted in favor of opening the region to commercial drilling. Currently, American oil corporations are sinking millions of dollars into exploration and gaining access to large oil deposits in the Caspian Sea region. According to Jeanne Whalen in the March 4, 2000, Wall Street Journal, the Caspian holds as much as 2.2 billion barrels, and Michael Davis reports in the April 22 Houston Chronicle that Conoco and Exxon Mobil have received the green light to proceed with an estimated $5 billion oil development project in that region and will pay $75 million for the right to develop in the Azerbaijan fields of the Caspian. Secretary of Energy Bill Richardson, who recently addressed the House of Representatives, summed up the rationale for the movement toward searching for oil when he said that the “world’s thirst for oil is steadily rising” and “demand will continue to grow.” If the money spent by the U.S. government on foreign aid and by oil corporations on fossil fuel exploration were invested on the development of alternative fuels. Apparently loyalty to fossil fuels is too deep. According to a recent analysis by the Congressional Research Service, reported in the March/April issue of Mother Jones, seventy-seven cents of every energy research dollar from 1973 to 1997 went to nuclear and fossil fuels; just fourteen cents went to alternative energy.
The Essay on Why Oil Prices Keep Falling
Base on the world economic review and studies shows that there are basic reasons why oil prices in global aspect keep on falling. Less Demand, More Oil. The oil price is partly determined by actual supply and demand, and partly by expectation. Demand for energy is closely related to economic activity. Then, over the last year, demand for oil in places like Europe and Asia, suddenly began weakening ...
With the flap this summer over gas prices in the United States, I feel impelled to ask why anyone is actually surprised. Petroleum is a finite resource and hence, before it runs out, it’s only natural that the price should go up. Current estimates, based upon today’s rate of consumption, indicate that cheap oil will be gone within fifty years. Therefore, ….
