As I was anticipating writing this blog, along came my newest Grand Daughter – Machalie Xuan Doan - born on April 29, 2015. I wanted to pay tribute to her and all the others born in the year 2015.
I find things on the internet which bode very well for their future which may well extend to the year 2090 or even 2100. As a side note, living to the 22nd century in itself is hardly conceivable to me. Of course, born in 1949 as I was, I marveled at the turning of the century in the year 2000. However, I am following numerous other topics on the internet which I find disturbing for these new arrivals.
In my most recent blog which was a tribute to my Mother, I marveled that she and her parents had lives that spanned from 1895 to 2010. The things that those two generations witnessed were truly amazing. My Grand Dad’s family had one of the first cars in their hometown. They saw the advent of airplane travel around the globe and a man landing on the Moon. Probably the most amazing of technologies for those generations was the advent and wide use of the computer and in Mom’s case, the internet.
So today, we have not only what was once termed the “PC” or “personal computer”, but “smart phones.” We have more than a billion people connected to each other via the “world wide web.” Smart phones can do more today than the entire NASA system used to launch both the Apollo Moon mission which landed men on the moon, as well as the EROS mission in 2001, detailed in my EPub, EROS Adventure, Journey to an Asteroid. Yet despite the limited technology the photos from the EROS mission, 300 plus of which are in the book, are intriguing as well as spectacular.
How will these new arrivals use this new technology? Where will it take them? I have an example which might shed some light on this question both positively and negatively.
My family installed solar panels on our house as part of the program of “net metering” used by Xcel Energy to encourage solar development. This legislation, passed by Colorado, also had a solar rebate built into the model, so we received a certain amount back from Xcel for the installation of the panels (which were not cheap). We paid the upfront cost and received the rebate several months later, which was not close to the completed system cost. We also entered into a contract to sell excess electricity back to Xcel, over and above what we used.
There is a growing argument about this “net metering” concept. The utilities argue that it cuts into the amount being paid to them, which is true. They argue that they can’t reliably maintain the grid infrastructure with a decreasing revenue stream. It is true that the nation’s electrical grid is basically in shambles because of lack of maintenance over the last 30 years. In my opinion, utilities have been and continue to be unwilling to look at the long term and spend the money necessary to do what is required, or look at any other business models.
The following presents the scope of the issue. Clearly, homeowners and businesses are looking for ways to reduce their energy costs.
“Between 2011 and 2012, the number of newly installed solar NEM systems increased from 61,400 to 89,620 -- a 46 percent annual growth rate -- bringing the cumulative total to 302,380 NEM systems,” the SEPA study reported. “By year end 2012, U.S. solar generation under net metering totaled more than 3,500 megawatts-AC. It is striking to consider that in 2005, when EPACT passed, total grid-connected solar capacity nationwide was only about 200 megawatts-AC.” Source: http://www.greentechmedia.com/articles/read/The-Solar-Industry-Responds-to-Utility-Attacks-on-Net-Metering
Yet, utilities fighting this “net metering” legislation is, as far as I am concerned, exactly the problem. I invested my private capital to provide them generating capacity which they did not have. Yes it was a small amount, but our system does feed electricity into the grid, as do many thousands of other “roof top” and “ground mounted” solar systems around the county and world. Many people, especially the republicans (“R”) call this a “subsidy” and argue against the utilities having to give it. They say solar can’t compete financially, but generally don’t define their terms nor really understand the concepts behind what they are discussing.
This is the reality behind the “subsidy” which I received. The money I received back in the form of a rebate was essentially the difference between them paying me for electricity at the rates they were charging retail, and their wholesale rates for generation, which are much less than ½ the current retail. If I had not gotten the rebate, I would have been selling the electricity I produced back to them at the same rate they were charging me. This was a huge win for them because they received my generating capacity for an anticipated 25 to 50 years of operation at a rate which was their wholesale generating cost when we installed the system
The only difference between me buying a bond from the utility company (i.e. loaning them money in return for interest) and placing solar panels on my roof is that by adding the panels to my roof, I am actually producing something which the utility can’t control. By that I mean, if I lent them money by buying a bond, they could add generation capacity to their system or use it to pay the CEO a bonus. The first would be beneficial to the consumers and ratepayers, the latter would not (in my opinion). I took that choice away from the utility and looked into the future at which would be most beneficial to both myself and our society as a whole. Financially, I would have been much better off if I had put the same money into a bond, but felt compelled to take a longer term view with regard to the “return on investment.”
Yet the people we elect, with an “R” (republican) or “D” (democrat), behind their names are typically in favor of the first option, giving them money and having them decide what they want to do with it. This is all done in the name of “employment,” with is in reality in the name of votes.
Clearly, legislators want the “mega-corporations (utilities)” to be able to dictate their own policies and have the choice which I took away from them (albeit in a very small way). How many of these mega-corporations have you heard of lately that pay top management (CEOs) huge bonuses while the firms themselves are struggling to survive? They pass legislation in favor the utilities, which might be fine if the utilities had the public interest in mind. You can see the same policies with the energy companies (Exon, Mobile, Chevron, etc.), utilities (Xcel, Duke Energy, etc.) and the information companies (such as Verizon, Sprint and AT&T).
“In the past, according to the EEI study, regulators managed rates to protect utilities. With the proliferation of distributed solar, it predicted, there will be pressure from utilities “to undo these cross subsidies.”” – Source: http://www.greentechmedia.com/articles/read/The-Solar-Industry-Responds-to-Utility-Attacks-on-Net-Metering
Getting back to my new granddaughter, Machalie and some of the very positive things I see for her generation going forward. As noted previously, computers, energy technology, medical advances, revolutionary transportation development and robotics all bode well for them. Indications are that these advances in technology will continue at a ever increasing pace through her lifetime.
For example, recently, Elon Musk, CEO and invertor of Tesla Motors announced that he developed a new concept and business model.
“Tesla CEO Elon Musk revealed the Tesla Powerwall unit in an event late Thursday in California that was live streamed online.” – Source: http://www.freep.com/story/money/cars/2015/05/01/tesla-motors-powerwall-home-battery-pack/26685443/
The Powerwall is described as follows on the Tesla website.
“Powerwall is a home battery that charges using electricity generated from solar panels, or when utility rates are low, and powers your home in the evening. It also fortifies your home against power outages by providing a backup electricity supply. Automated, compact and simple to install, Powerwall offers independence from the utility grid and the security of an emergency backup.
Powerwall comes in 10 kWh weekly cycle and 7 kWh daily cycle models. Both are guaranteed for ten years and are sufficient to power most homes during peak evening hours. Multiple batteries may be installed together for homes with greater energy need, up to 90 kWh total for the 10 kWh battery and 63 kWh total for the 7 kWh battery.” – Source: http://www.teslamotors.com/powerwall
While not new, this battery storage concept will probably catch on in a big way. People are looking at ways to save money over the long term. This will have the impact of adding capacity to the grid while taking the control away from the utilities. As I noted previously, the utilities and legislators are pushing back. They are trying to take away any financial incentive including tax incentives and federal credits in order to preserve the “status quo.”
I note some of the changes and trends which are occurring due to innovators and entrepreneurs such as Bill Gates, and Elon Musk in my EPub entitled World Collapse or New Eden, 2015 Edition. This digital publication takes 101 predictions made in the time period of 2008 to 2011 and follows them forward into 2015. It is an intriguing, thought provoking read, applicable to these times. These are the ideas and people which have changed and will continue to change the world for Machalie.
It seems the only way to change the direction from the existing “status quo” is to completely “overhaul” the global power structure. I propose starting in Washington DC. I don’t believe that just getting all of the current legislators (Congress) out of office is the solution. In my opinion, I think something as radical as not letting anybody over the age of 50 vote or run for office might tip the power structure enough to make some changes. This could effectively transfer power to the young generation and remove my generation from power. After all we are the cause of the problem, by keeping people such as Jeb, Hillary, Rubio, Christie, O’Malley and Walker in the limelight. In my opinion the only possible change from the existing elitist system will come from the likes of Rand Paul.
With all the promise that Machalie and her generation have in front of them, they need the chance to move beyond the “status quo” power and financial structure created by my generation. This transfer of power, from my perspective, is critical to allow them to achieve their goals and aspirations as they grow up. They can’t use the current 20th century model in the 21st and coming 22nd centuries. Remember the generation coming up as you enter this 2016 election cycle.
As I celebrate the birth of Machalie, I wish both my granddaughters, Machalie and Imani much love and success in all that they undertake.
Sincerely,
H. Court Young
Author, publisher, speaker and geologist
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