Llewellyn King: As climate warms, utilities must become much more resilient
The severe flooding in Greater New York, New Jersey and New England from the remnants of Hurricane Ida, that storm’s devastation in New Orleans and much of the rest of Louisiana and the winter freeze in Texas usher in a new reality for the electric industry, showing how outdated their infrastructure has become and how they have to much more expect the unexpected.
Resilience is the word used by the utilities to describe their ability to speedily restore power, to bounce back after an outage. This year, resilience has been put to the test with major challenges affecting electric utilities from coast to coast. Mostly, the results have been disappointing to catastrophic.
It is reasonable to believe that resilience means that if there is an outage power will be back on forthwith or within hours, and that is often the case.
But as the attacks on the system from aberrant weather have become more frequent and severe, the bounce back has been closer to struggle back slowly.
Two cases tell a tale of catastrophe. Recently, the complete loss of electricity to New Orleans during Hurricane Ida, much of which is still in the dark and with people suffering without water in their homes, along with the absence of light, air conditioning, or the ability to charge a cell phone.
Even before Ida tore into the Gulf Coast, teams from other utilities were on their way to help. ConEd in New York was one of many utilities that had trucks rolling to the scene before Ida hit. That kind of quick, fraternal response is often what is meant by resilience. Bold and well-coordinated though it may have been, it was not nearly enough. Entergy, which supplies the power to the area, failed the resilience test.
The other standout was in the failure of the Texas grid when Winter Storm Uri struck in the middle of February. It froze much of Texas for five days and more than 150 people died, some by freezing to death in their homes. The unfortunately named Electric Reliability Council of Texas (ERCOT), which operates the electric grid of Texas, abominably failed the resilience test.
Some of the natural-gas supply was cut off during the deep freeze because the system hadn’t been weatherized, but the gas that did flow also flowed money.
The gas operators made enormous profits, including Energy Transfer, which made $2.4 billion. Not only had the gas operators not signed on to the concept of resilience, but the idea of commonweal was absent.
While electric utilities -- there are a few large electric utilities and more than 80 small ones in Texas -- struggled to honor their mandate to serve, the gas suppliers, according to those in the electric utility industry, served their mandate only to their shareholders.
Rayburn, the electric cooperative that has a service area near Dallas, spent what it had budgeted for three years in just five days on gas purchases, CEO David Naylor told me.
On my PBS show, White House Chronicle, Paula Gold-Williams, president and CEO of CPS Energy, the large, municipally owned gas and electric utility in San Antonio, said she thought that the suppliers of gas to electric generators should be regulated as Texas utilities are.
Wildfires in the West, storms in the East and up the center of the country have put a huge strain on the electric utilities. What is clear is that “resilience” needs to be defined in a much broader sense. That whole infrastructure of the electric-utility industry needs to be re-examined with a view to surviving monstrous weather. The cost in lives and in treasure is very high when electricity, the essential commodity of modern life, fails.
This new imperative comes at a bad time for the electric-utility industry, which is struggling with daily cyber-attacks, converting from fossil fuels to alternatives, and straining to find new, durable storage systems.
One of the trends to greater security is to encourage microgrids – small, self-contained grids that can store and generate electricity, often from renewables like solar. These can disengage from the grid in times of stress and continue providing power to the microgrid.
Other suggestions include undergrounding electric lines. California’s Pacific Gas and Electric has proposed undergrounding 10,000 miles of lines to counter wildfires sparked by downed cables. The cost might be insupportably high -- over $1 million a mile in level ground, according to one estimate.
Entergy, according to The Energy Daily, has 2,000 miles of lines down in New Orleans. Burying just the most vulnerable lines in the nation would be a massive civil engineering undertaking at a daunting cost. Other ideas, please?
Llewellyn King is executive producer and host of White House Chronicle, on PBS. His email is llewellynking1@gmail.com, and he’s based in Rhode Island and Washington, D.C.
Llewellyn King: Bad news for climate: U.S. nuclear plants closing
This will be a bleak Christmas for the small Vermont community of Vernon. It is losing its economic mainstay. Entergy, the owner of the midsize nuclear plant there, which has sustained the community for 42 years, is closing the plant. Next year the only people working at the plant will be those shuttering it, taking out its fuel, securing it and beginning the process of turning it into a kind of tomb, a burial place for the hopes of a small town.
What may be a tragedy for Vernon may also be a harbinger of a larger, multilayered tragedy for the United States.
Nuclear – Big Green – is one of the most potent tools we have in our battle to clean the air and arrest or slow climate change over time. I've named it Big Green because that is what it is: Nuclear-power plants produce huge quantities of absolutely carbon-free electricity.
But many nuclear plants are in danger of being closed. Next year, for the first time in decades, there will be fewer than 100 making electricity. The principal culprit: cheap natural gas.
In today’s market, nuclear is not always the lowest-cost producer. Electricity was deregulated in much of the country in the 1990s, and today electricity is sold at the lowest cost, unless it is designated as “renewable” -- effectively wind and solar, whose use is often mandated by a “renewable portfolio standard,” which varies from state to state.
Nuclear falls into the crevasse, which bedevils so much planning in markets, that favors the short term over the long term.
Today’s nuclear-power plants operate with extraordinary efficiency, day in day out for decades, for 60 or more years with license extensions and with outages only for refueling. They were built for a market where long-lived, fixed-cost supplies were rolled in with those of variable cost. Social utility was a factor.
For 20 years nuclear might be the cheapest electricity. Then for another 20 years, coal or some other fuel might win the price war. But that old paradigm is shattered and nuclear, in some markets, is no longer the cheapest fuel -- and it may be quite few years before it is again.
Markets are great equalizers, but they're also cruel exterminators. Nuclear- power plants need to run full-out all the time. They can’t be revved up for peak load in the afternoon and idled in the night. Nuclear plants make power 24/7.
Nowadays, solar makes power at given times of day and wind, by its very nature, varies in its ability to make power. Natural gas is cheap and for now abundant, and its turbines can follow electric demand. It will probably have a price edge for 20 years until supply tightens. The American Petroleum Institute won't give a calculation of future supply, saying that the supply depends on future technology and government regulation.
Natural gas burns cleaner than coal, and is favored over coal for that reason. But it still pumps greenhouse gases into the atmosphere, though just about half of the assault on the atmosphere of coal.
The fate of nuclear depends on whether the supporters of Big Green can convince politicians that it has enough social value to mitigate its temporary price disadvantage against gas.
China and India are very mindful of the environmental superiority of nuclear. China has 22 power plants operating, 26 under construction, and more where construction is about to start. If there is validity to the recent agreement between Chinese President Xi Jinping and President Obama, it is because China is worried about its own choking pollution and a fear of climate change on its long coastline, as well as its ever-increasing need for electricity.
Five nuclear-power plants, if you count Vermont Yankee, will have closed this year, and five more are under construction in Tennessee, South Carolina and Georgia. After that the new plant pipeline is empty, but the number of plants in danger is growing. Even the mighty Exelon, the largest nuclear operator, is talking about closing three plants, and pessimists say as many as 15 plants could go in the next few years.
I'd note that the decisions now being made on nuclear closures are being made on economic grounds, not on any of the controversies that have attended nuclear over the years.
Current and temporary market conditions are dictating environmental and energy policy. Money is more important than climate, for now.
Llewellyn King (lking@kingpublishing.com) is executive producer and host of “White House Chronicle” on PBS.