ISO's Shortsighted Mandate

Allowing Mirant's Canal electric plant to continue operation when no demand exists has increased rates throughout southeastern Massachusetts to among the highest in the nation. Money is better spent on local power generation, investments in alternative energy and a focus on reducing demand.

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In a period of four years, from 2005 to 2008, electric customers on Cape Cod and in southeastern New England paid $350 million to keep the Mirant Canal electric plant running when there was no market demand for its power.
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Here we are, years into this discussion and we find
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...ISO has only evaluated the cost of the transmission line, which would cost between $110 million and $640 million and would take from 36 to 54 months to construct. ISO has not determined whether that cost would be charged to Southeastern Massachusetts ratepayers or all electric ratepayers in New England.
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The ISO dilemma appears to be whether to continue to soak Southeastern Massachusetts ratepayers or spread it around?

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State Sen. Robert O’ Leary, D-Barnstable, recently drafted a bill asking the DPU to complete a cost analysis report “evaluating all technically feasible supply and demand proposals which will reduce or eliminate uplift charges imposed upon ratepayers.”

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[State Rep. Jeff Perry, R-Sandwich] wrote that shutting down the plant “in the name of environmental protection” would be shortsighted.
He added that converting to natural gas would allow the plant to remain in Sandwich and contribute tax revenue.
Mirant paid more than $2 million in taxes last year.
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The $350 million passed along to ratepayers in the last 4 years, is $87.5 million per year. A return of $2 million per year doesn't seem a worthy return for the cost.

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That $350 million invested in alternatives would go a long way.

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The following article made me wonder just how far an educational campaign would go to reduce demand. And it wouldn't cost $87.5 million per year.

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On February 20, 2007, Australia announced it would phase out the sale of inefficient incandescent light bulbs by 2010, replacing them with highly efficient compact fluorescent bulbs that use one fourth as much electricity. If the rest of the world joins Australia in this simple step to sharply cut carbon emissions, the worldwide drop in electricity use would permit the closing of more than 270 coal-fired (500 megawatt) power plants. For the United States, this bulb switch would facilitate shutting down 80 coal-fired plants.

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At the commercial level, Wal-Mart, the world's largest retailer, announced a marketing campaign in November 2006 to boost its sales of compact fluorescents to 100 million by the end of 2007, more than doubling its annual sales.