Innovest, an influential international financial adviser group, released a report Tuesday that analyzed the risks and benefits of Sunflower Electric Power Corp.’s proposed coal-fired power plant expansion near Holcomb. It found that while the Sunflower expansion would provide additional baseload capacity, “the carbon risks associated with an increased reliance on coal present significant financial risks for the company’s owners and ratepayers.” What kind of risks? Assuming carbon regulation costs based on prevailing market rates of between $21 and $48 per ton, the Holcomb plant could cost Sunflower ratepayers “between $22.4 million and $51.36 million annually,” the study found. The analysis concludes that “Sunflower has failed to account for likely regulatory scenarios, and will therefore expose its ratepayers to the significant financial exposure associated with a strategic focus on developing new coal capacity.”
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32 Comments
”What kind of risks? Assuming carbon regulation costs based on prevailing market rates of between $21 and $48 per ton, the Holcomb plant could cost Sunflower ratepayers “between $22.4 million and $51.36 million annually,”
——————————–
That’s a drop in the bucket compared to what the biggest opposer of the Holcomb plant will do if successful. Widen their base of natural gas, also a carbon fuel and at three times the cost of power generated by coal – a sure thing to flatten your wallet.
Ya gotta read this. I posted some on the open, but now that this thread appears, it really belongs here.
WTF? TREGO county is now approaching violation of federal ozone standards?
And the city clerk promotes his town by saying “there’s nothing but birds and deer out here”?
I’m stunned.
(crickets chirping)
Here’s a clue. Folks who have some clout will care more about the deer and birds than the people who live out here.
Hehehehehe. Ya just cant make this stuff up….
http://www.kansas.com/news/updates/story/353992.html
So now, in little Trego County, we have to worry about Hays and Russell draining Cedar Bluff and they and the irrigators draining the Smoky and the aquifer, but we have to worry about the quality of the air we breathe?
So much for the last thing this region had to sell to get people (as opposed to deer and birds) to live here.
Our clean environment and outdoor recreation.
What Sunflower risk? The stupid taxpayers that are insisting on the plant will assume part of the risk, as well as all of those opposed to it!
Privatize profit, Socialize cost. Our Legislatures are all over it.
Here’s a soulution. They build a biodome over the plant, and keep the pollution at home.
The Governor already vetoed the plant.
Put a big green X on it and move on.
Komrade posted March 27, 2008 at 12:02 pm
“Widen their base of natural gas, also a carbon fuel and at three times the cost of power generated by coal – a sure thing to flatten your wallet.”
FALSE. Nat gas emits less CO2 than coal.
Read the report and look at the graph. At $13.20 nat gas becomes CHEAPER than coal.
http://www.innovestgroup.com/images//sunflowerreport_032708.pdf
Nat gas plants are also cheaper to build, and can be more efficient. The waste heat can be used for heating and cooling.
“Here’s a soulution. They build a biodome over the plant, and keep the pollution at home.”
And move the state legislature’s chambers to the biodome and have them meet there.
Sumpt’n tells me that they might change their minds about “clean coal.”
Also very relevant…
‘Sunflower Power President’s “No Fuel Bias” Questionable in Kansas’
http://www.desmogblog.com/sunflower-power-presidents-no-fuel-bias-q uestionable-in-kansas
“Watkin’s “no fuel bias” is a little hard to believe when the same Earl Watkins Jr. sits on the Board of Directors of the Western Fuels Association, a cooperative business that supplies 17 million tons of coal to electric generating plants across the United States.
Its even harder to swallow Watkin’s spin with release of a new report by financial research firm Innovest Strategic Value Advisors, finding that natural gas generation might actually be more cost-effective given impending federal greenhouse gas regulations. “
This just in from the Department of Pulling Numbers out of our Butt:
“could cost Sunflower ratepayers “between $22.4 million and $51.36 million annually,””
http://greenwombat.blogs.fortune.cnn.com/2008/03/27/california-utility-to-turn-roofs-into-solar-power-plants/
California utility to turn roofs into solar power plants
Now that investment will pay off handsomely for both the utility and the ratepayers.
fleettwood posted March 27, 2008 at 12:43 pm
“This just in from the Department of Pulling Numbers out of our Butt:
[Stats from Innovest's report]”
http://solveclimate.com/blog/20080325/report-new-kansas-coal-plants-will-lock-decades-rising-electricity-prices
“The report comes from Innovest Strategic Value Advisors — a firm that raised the red flag on Bear Stearns last July when the big banks were blinded by the Bear’s $150 stock price.
Not that anyone listened to Innovest then. Maybe this time, in Kansas, they will.”
Ben,
The local solar panels idea is great — it eliminates the cost of building long, expensive, transmission lines, and their energy losses.
Yep – and as noted Southern California, like Wichita, tends to peak-use for air conditioning – i.e. when hot and sunny. Just adds yet another ‘non-traditional’ energy source to the mix.
I was a ratepayer out here when the first Holcomb plant went on line. We paid out the wazoo. Far higher costs than our city cousins. Then demand dropped and the cost of gas went down, and Sunflower was ALMOST forced to declare the Holcomb plant a “stranded asset” that qualified for some financial benefits. Almost thirty years later, I cant remember the details but I think it included REA loan forgiveness, and some other relief.
But then, demand picked up, prices change, and since I’ve moved back, my rates are higher than urban, but not as far out of line as they used to be.
Maybe they have the “stranded asset” strategy as a backup? Maybe such a thing doesnt even exist anymore. Not my area of expertise.
But maybe some of you smart folks know?
In any event, looks like the ratepayers of Sunflower’s member cooperatives are gonna be the cash cow. Again.
I wonder how much more power you would get from solar roof panels in the summer compared to cost of cooling you have to pay for instead of having good shade tree or two. Then of course you have to figure the cost of the panels. And the plants in China that produce most of the polysilicon used in the world are a terrible polluters.
“Polysilicon is an essential raw material in the production of solar cells for panels that convert sunlight to electricity for homes, businesses and farms”.
http://www.treehugger.com/files/2008/03/solar_pollution_china.php
Another “ethanol” type solution?
Carbon Credits? Carbon Tax?
Sometimes you get what you ask for.
Open your wallets and insert your foot.
I wonder what the legislature will spend all that new revenue on?
Only outlander could twist logic so that solar power becomes a major polluter.
Look, dipswitch, Kansas gets as much sunlight as Florida. As far as wind, we’re freaking Saudi Arabia.
We are uniquely situated to lead the nation in both of these growth industries.
What we need now are political leadership.
And for idiots like you to get the hell out of the road.
CapnHalfTruth:
You really have a head in the sand mentality don’t you? You know if you don’t want to know the truth, you can cover your eyes or plug your ears and shout. Responsible people want to look at the costs and benefits of any option. For example, ethanol. Great idea. As it turns out, not so good. And some folks also might care about the Chinese people, even if you don’t.
So CapnHapfTruth, please engage your brain before you start lecturing me again. You are boring me.
outlander,
The Chinese are responsible for their pollution problems.
Are you going to have tree branches hanging over the entire house?
Good luck during a heavy ice storm.
Use light-colored shingles. Have balanced ridge and soffit vents, then in the attic, staple radiant barrier to the rafters below the roof sheathing.
The radiant barrier blocks infrared — and causes a “chimney” effect. Heated air rises out thru the ridge vents, pulling outside air in thru soffit vents.
Plug all air leaks from the house into attic, and add more insulation.
Also,
http://www.sciam.com/article.cfm?id=solar-cells-prove-cleaner-way-to-produce-power
“But a new analysis finds that even accounting for all the energy and waste involved, PV power would cut air pollution—including the greenhouse gases that cause climate change—by nearly 90 percent if it replaced fossil fuels.”
outlander – even with some nice trees the ROOF still gets a lot of sun – especially warehouses etc.
Thanks for the info on cooling Cosmos.
Seems to me though, to be a little of a colonial attitude going on here. So, if we obtain the raw material for these solar panels (polysilicon)at the cost of the health of Chinese people, is that ok, because “The Chinese are responsible for their pollution problems”?? I mean, I know they have a lot of people and could probably spare a few but still…
American Way posted March 27, 2008 at 2:21 pm
“Open your wallets and insert your foot.”
Become more energy efficient, and make your wallet fatter.
“I wonder what the legislature will spend all that new revenue on?”
Fund energy audits to lower demand, and lower utility bills, like Boulder CO is doing.
Another proposal is to use carbon taxes to help reduce payroll and/or income taxes.
outlander,
I do not think that China’s pollution problems are “ok” — but basically it is their responsibility to clean up their act.
The U.S. could try to force them to change by boycotting their products until they do so. But it’s a global economy, and they could just sell to other markets?
Boy Randy, you are an IDIOT! THis is NOT a financial advisors group, it is a Global Warming Cheerleader. From their “Partners” page:
“The Carbon Disclosure Project (CDP) provides a secretariat for the world’s largest institutional investor collaboration on the business implications of climate change. Innovest has been selected to undertake the research and analysis of the Global Report, which is now backed by institutional investors with $31.5 trillion assets under management, since its inception.”
They are vested ACTIVISTS, and YOU a “Journalist” could not find out that particular “fact”????
Here is their Website, Look around, can’t you just smell the propaganda? This is complete BS, and not a particular objective study.
http://www.innovestgroup.com/index.php?option=com_content&task=blogcategory&id=32&Itemid=65
Sounds pretty straight forward to me as an institutional advisory group, and not activist.
“Innovest Strategic Value Advisors was founded in 1995 with the mission of integrating sustainability and finance by identifying non-traditional sources of risk and value potential for investors. Our analysis is designed to assist our clients in constructing and managing portfolios that out-perform the market. We do this by tracking company performance and strategic positioning on over 120 factors that are not captured or explained by the traditional, accounting-driven securities analysis.”
“Seems to me though, to be a little of a colonial attitude going on here. So, if we obtain the raw material for these solar panels (polysilicon)at the cost of the health of Chinese people, is that ok,…”
Well pick a side and stay there outlander!
You are all ok with the US securing “our” oil interests in the middle east. But here you wanna get haughty?
I would think that those solar reflection plants would work well here.
You know those ones that reflect sunlight onto a central point and turn water into steam to power a generator.
At the same time, the steam can be collected and recycle back into water, no waste there.
Imagine having them on everyone’s rooftop.
Tyler Durden posted March 27, 2008 at 5:07 pm
“This is complete BS, and not a particular objective study.”
Then list any errors that you found in their report.
http://www.innovestgroup.com/images//sunflowerreport_032708.pdf
Crickets chirping… chirp… chirp…
Innovest is owned by Gulf Investment House.
Gulf Investment House K.S.C. (GIH) is a Kuwait-based private shareholding company engaged primarily in investment activities and related financial and advisory services. The Company’s products and services include direct investments, private equity, real estate, investment funds, structured finance, corporate finance and advisory services. Its activities are based on Shari’ a compliant principles. GIH’s subsidiaries within Kuwait are Bonyan Holding Company, Afkar Holding Company, Marasi Holding Company and Tamaluk Holding Company. Gulf Investment House has investments in Gulf Cooperation Council Countries, Europe and the United States.
Electric power plants and ethanol manufacturing plants gulp our pristine clean drinking water from our Kansas deep underground Ogallala aquifer stratas.
ELECTRIC POWER PLANTS AND ETHANOL MANUFACTURING PLANTS GULP OUR PRISTINE CLEAN DRINKING WATER FROM OUR KANSAS DEEP UNDERGROUND OGALLALA AQUIFER STRATAS.
$3600 million is $3.6 billion!!!!!!! Herbert West III west.herb@yahoo.com
So.. does the logic here dictate we stop ALL imports from China? Or just the ones that affect alternative energy?
good luck with that…
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