For starters, consider the following example: In the matter of the IGCC Power Plant and Lignite Coal Mine presently before the Mississippi Public Service Commission, among other things, the Utility relies upon the following: 1. FERC principles. This matter warrants a separate opinion letter rendered under FERC review. 2. state procedural custom and practice [n.b. Q. Please explain fully and in detail whether the Utility relied on any other decision or document in preparing its request for a rate schedule other than the Commission’s decision? A. The Utility relied on a variety of sources in preparing the proposed rate schedule including, but not limited to the Commission’s orders. However, for all of the reasons discussed below, it is difficult to point to a small, discrete list of specific legal citations and/or authority that was used to support the many cost categories and line items included in the rate schedule] 3. generally accepted accounting for Construction Work In Progress ("CWIP"). FASAB sets forth Standard General Ledger CWIP account definition: "includes costs of direct labor, direct material, and overhead incurred in the construction of general property, plant, and equipment (except information technology software) for which the agency will be accountable. Upon completion, these costs will be transferred to the proper capital asset account as the acquisition cost of the item." The utility has stated that generally accepted accounting principles supercede state regulation. This matter warrants a separate opinion letter rendered under FASAB review. This matter warrants separate opinion letters rendered under FERC review and FASAB review. Therein lies the trade-off. Utilities and State Public Service Commissions conduct resembles pro se litigants at state court offices of the self-represented. When you are dealing with SOPHISTICATED litigants, where do you draw the line between "guidance" and "advise"? Jurisdictional Stakeholders consider: 1. Do they share the same mission, and if not, are the differences compatible? 2. Can each of the policymakers and the industries they oversee carry out a multidiscipline initiative under existing single-discipline statutes? 3. Can the parties execute a coherent national policy within a diverse regulatory system in which the broadest authority resides at the state level? 4. Will policymakers authorize recovery of and returns on investment sufficient to induce long-term capital investments during an era when customers insist on keeping rates low? 5. How do the regulators or legislators induce utility innovation—or penalize its absence? 6. How do policymakers ensure that incumbent utilities plan and operate evenhandedly, where the utility has incentive and opportunity to exploit its special status? 7. How can decisionmakers achieve industry-wide acceptance of the smart grid's public-interest prerequisites? Whatever. However, go back to the question: Regulation and governance of the electricity industry occurs at multiple overlapping levels and has odd gaps. Will realizing a 21st Century electricity industry vision require that we change how these levels coordinate and collaborate? What are the gaps and who should address them? Seventy-five years ago, Congress drew lines between federal and state jurisdiction over the electric industry. Since then, almost everything has changed. We used to have state-based, vertically integrated utilities with monopolies over retail service and most wholesale generation service. We still have some of those companies, but we also have regional markets, served by a host of new players, including distribution-only companies, wholesale generation companies, transmission companies, and nonprofit regional transmission operators. Some states have added retail competition. And electricity is no longer the only service available -- now there are demand resources, "ancillary services," and transmission-only companies. And some markets haven't changed at all. What hasn't changed much is the 1935 division of jurisdiction between federal and state regulators. This meshing of modern complexity with New Deal simplicity causes much confusion and uncertainty. As was set forth in "The competitive electric utility: reliable and sustainable performance (1997) http://books.google.com/books/about/The_competitive_electric_utility.html?id=iatqYgEACAAJ : "A municipal consumer class can mitigate the discrimination, inequities, and subsidies inherent in utility rates deemed econcomic-development rates. The municipal consumer class is an option by which small consumers can gain comparable, economic development benefits for themselves typically reserved for industrial and commercial classes. The municipal utility structure may provide solutions to the concerns of the small captive consumer." "People, individually or collectively, should begin preparations to mitigate their risk of damages from mandatory emergency conservation and load reduction measures, commonly known as [the] energy shortage contingency plan" Crain's New York Business, 2/13/2006, vol. 22, issue 7, p8. Communities can meet the demand for services without spending on new infrastructure. It is conceivable that public agencies could be recast as public-private utilities. They would have authority to issue bonds to build and maintain infrastructure, with debt service supported by user fees or taxes. Properly designed and regulated, the infrastructure utilities would work with local public agencies to pursue mutual planning goals. Weiman, Clark, "Downsizing Infrastructure," TECHNOLOGY REVIEW, pages 49-55 (May/June 1996). Consider, for example, an energy conservation alternative for industrial facilities, which comprise 74% of the forecasted increase in energy needs of 2.2 million MWh between 2009 and 2014, or 440,000 MWh annually. Using NAS Meridian as an industrial example, approximately 500 industrial facilities (as per utility 2008 Depreciation Study) saving 1,889 MWh per year equals 944,500 MWh annual total, a surplus of 504,500 MWh annually. Remember, 1) "Each customer is responsible for the cost effectiveness of the rate under which they are served" and 2) Consumers desire innovation in the goods and services that result from the application of electric power (The faster horse problem for electricity is that, fundamentally, no one wants to buy electricity. They want to achieve various outcomes that require energetic work. We simply decided early on to split this need into a "fuel" and all of the other pieces of hardware and software required in a given outcome. Because this split is so ingrained in the thinking, overcoming it will take time and require support. Those who are using electricity need to think in terms of what they want to accomplish and be open to offers that help them do that, rather than just help them buy electricity). When asking"how does one define 'Best-Use' of public goods?" take the example of the development of Jamaica Bay in New York and the reconciliation of the public's need for open space with its need for commercial development. The commercial demands of freight transportation had considered Jamaica Bay as a large marine terminal. Ultimately, the public need for open space prevailed. Ironically, the outcome was not so much because open space may have been the Best-Use, but rather because freight terminals could be better served by rail service than water. What trade-offs must federal and state decision makers resolve to realize a 21st Century electricity industry vision? Why are these trade-offs necessary? The courts have ruled that the Dormant Commerce Clause prohibits a state from obstructing interstate trade or placing itself in a position of economic isolation. It is only a matter of time before utilities and lawmakers challenge the constitutionality of certain state RPS mandates. Micro-grids. Macro-grids. One grid. Off-grid. Trade-off. "The New York State Energy Research and Development Authority reimbursed the U.S. Tennis Association $190,000 for auxiliary generators that [would] reduce the National Tennis Center's electrical needs during the U.S. Open by 30%, or 2 megawatts, to ease burdens off the grid during periods of peak demand. Two megawatts [did] not require Public Service Commission approval. If the New York Affordable Reliable Electricity Alliance could locate approximately 1,500 more sites for similar auxiliary generation, it might find $285 million in reimbursable "solutions to fix a growing crisis for all New Yorkers" http://www.nysun.com/opinion/letters-to-the-editor-2004-08-19/505/ Trade-Off-Grid.

Renewable energy used to meet a state’s Renewable Portfolio Standards (RPS) obligation be generated within the state itself, which is the most direct means for a state to retain the economic benefits of its RPS program for itself. In-region location requirements, while not discriminatory towards certain neighboring states, would still be facially discriminatory against the remainder of states. RPS programs with in-state consumption, metering, or sales requirements would likely survive scrutiny under the dormant Commerce Clause. Regional delivery requirements would avoid the peculiar physical limitations of an in-state metering requirement. The in-state metering requirement could require construction of a special dedicated transmission line from an out-of-state generator to allow for direct, in-state metering of output. Adopt a federal program that includes a national Renewable Energy Credit (REC) trading system. Such a system would reduce the entry barriers states considering the implementation of new RPS programs that make use of RECs face, reduce collective overall costs of state RPS programs through economies of scale, and improve integrity of REC trading systems by reducing or eliminating possibility of intentional or inadvertent double-counting of credits. ENDRUD, Nathan E., Harvard Journal on Legislation, vol. 45, 2008. The courts have ruled that the Dormant Commerce Clause prohibits a state from obstructing interstate trade or placing itself in a position of economic isolation. It is only a matter of time before utilities and lawmakers challenge the constitutionality of certain state RPS mandates. SOVACOOL, Benjamin K. and Christopher COOPER, ENVIRONMENTAL & ENERGY LAW & POLICY J., 3:1, 2008.

How is the Smart Grid / Smart Meter Initiative going to gain the trust of the public when there is a failure of the Regulatory Commissions to regulate their own rules and state statutes? My link exhibits such a failure: http://home.earthlink.net/~bjwimages/the_electric_smart_meter_problem/

NERC - North American Electric Reliability Corporation www.nerc.com/ Organization of US electrical grid operators.

"People, individually or collectively, should begin preparations to mitigate their risk of damages from mandatory emergency conservation and load reduction measures, commonly known as [the] energy shortage contingency plan" Crain's New York Business, 2/13/2006, vol. 22, issue 7, p8.

National Academy of Engineering NAE www.nae.edu/

NEMA - National Electrical Manufacturers Association www.nema.org/ NEMA is the leading trade association in the U.S. representing the interests of electroindustry manufacturers of products used in the generation, transmission and distribution, control, and end-use of electricity.

National Institute of Standards and Technology www.nist.gov/ NIST is the federal technology agency that works with industry to develop and apply technology, measurements, and standards.

International Brotherhood Of Electrical Workers - Int'l Office www.ibew.org/

www.ieee.org/ Institute of Electrical and Electronics Engineers IEEE is the world’s largest professional association dedicated to advancing technological innovation and excellence for the benefit of humanity.

http://my.epri.com/portal/server.pt? The Electric Power Research Institute (EPRI) is an independent, non-profit company performing research, development and demonstration in the electricity sector for the benefit of the public. EPRI is funded by membership participation in its research activities. Members represent more than 90% of the electricity generated and delivered in the U.S. International participation extends to 40 countries.

Edison Electric Institute www.eei.org/ Association of shareholder-owned electric companies.

U.S.D.O.E.

FERC

Xcel’s experience with Buffalo Ridge is a case study for how other utilities might win public approval for network upgrades that ultimately benefit all generators. Xcel believed that it could reserve transmission capacity for new generation that it designated as a “network resource” and that it could reserve transmission capacity necessary to serve future load growth. Xcel will have first claim on the lines’ capacity, but only to the extent that it can document that it has “network resources” waiting to use the capacity or that it needs the capacity to meet future load growth. Xcel must designate network resources pursuant to MISO’s Open-Access Transmission Tariff. The certificate of need statute directs the Commission to “adopt assessment of need criteria to be used in the determination of need for large energy facilities pursuant to this section.” The statute also directs the Commission to evaluate the following factors in assessing need: the effect of existing or possible energy conservation programs under Minn. Stat.§ 216C.05 through 216C.30 or other federal or state legislation on long-term energy demand; the relationship of the proposed facility to overall state energy needs, as described in the most recent state energy policy and conservation report prepared under Minn. Stat. § 216C.18; See, e.g., MINN. STAT. § 216C.05 (2008) (“It is the energy policy of the state of Minnesota that: (1) the per capita use of fossil fuel as an energy input be reduced by 15 percent by the year 2015, through increased reliance on energy efficiency and renewable energy alternatives; and (2) 25 percent of the total energy used in the state be derived from renewable energy resources by the year 2025.”).

Municiple Aggregation as a means of promoting competitive electricity markets through community purchasing http://www.nrri.org/pubs/electricitylaw/articles/ela_aggregationreport_raderhempling00.pdf The municipal consumer class is an option by which small consumers can gain comparable, economic development benefits for themselves typically reserved for industrial and commercial classes. The municipal utility structure may provide solutions to the concerns of the small captive consumer.

Innovation in utilization-technology is a function of policy. Policy is of a function of generation-technology. Alternating Current system is the de facto configuration only after the invention of the induction motor. Alternating current (AC) power is essentially fixed voltage, fixed frequency. The direct current (DC) motor has survived because of its superior controllability (read "hysteresis"); this controllability lies in the power supply, not the motor. Fixed-voltage, fixed-frequency underlies the inferiority of the AC motor. Consider for example, a voltage-controlled circuit that turns on when the voltage across the electrolytic reaches a certain "threshold". But the advantage of this circuit is the "hysteresis" or wide difference between turn-on and turn-off. For example, the circuit turns on at 2.8v and turns off at 1.5v. These levels are important as they control the amount of energy delivered to the motor during each "pulse." The difference between the upper switching and lower switching voltage is what is called hysteresis, and what's great about hysteresis, it seems, is that it determines how long your load will be driven. By changing the capacitor, the hysteresis can be changed. For example, oscilloscope tracking of pulses of a motor with a 0.22uF capacitor versus a 10uF capacitor, reveal how the lower switching voltage is smaller with the 10uF capacitor, so the hysteresis is longer. This results in longer, less frequent pulses from the motor. Efficient, long-distance transmission makes centralized supply of variable load requiring constant voltage feasible. Although DC storage capital investment is greater than AC plant additions, AC plant needs 24 hour staffing and 70% more fuel than DC plant for the same output. Also, a circuit breaker (switchgear) for DC is more difficult to manufacture than an AC breaker because it has to depend upon the arc being drawn out to a length which the prevailing voltage and current conditions cannot sustain. If the current were chopped or discontinued immediately as the contacts open, enormous surge voltages would be induced because of the self-inductance of the circuit. The arc performs the vital function of allowing the current to continue to flow until the instantaneous value of the current falls to zero. At the point when the current becomes zero, the arc extinguishes itself naturally. For satisfactory operation, the medium in which the arc occurs must have cooled sufficiently to prevent the voltage rise in the following half-cycle from re-striking the arc.

48 contiguous state jurisdictions regulating the convenience and necessity of electric power; generated, distributed, and transmitted through an integrated network system, switchgear notwithstanding.

I went to get electric service resumed at a single family residential dwelling. The electric utiliity advised that city inspection was required. City inspector advised that licensed electrician was required. Once the licensed electrician, on behalf of the owner, petitioned the city inspector who would then issue a permit and advise the utility to initiate service ... " In engineering terms, such a predicament is called "limiting factor." In the words of maintenance-man, heating-engineer, air-conditioning specialist Harry Tuttle: "at your service ... central services are a little overworked these days ... only central service operatives are supposed to touch this stuff, but nowadays with all the new rules and regulations, they can't get decent staff anymore, so they tend to turn a blind eye as long as I'm careful ... Now mind you if they could ever prove that I've been working on their equipment, well that's a pipe of a different color. This whole system of yours could be on fire, and I couldn't even turn on a kitchen tap without [filing] a Twenty-Seven B Stroke Six ("27B/6") ... bloody paperwork [huh] ... I came into this game for the action, the excitement. Go anywhere, travel light, get in, get out, wherever there's trouble, a man alone [prometheus clone]. Now they got the whole country sectioned off, you can't make a move without a form ... there's your problem, I found it ... [I can't fix it], I can [however] bypass it with one of these ... Listen, kid, we're all in it together." Keywords: NYMEX; Energy Futures; Provider of Last Resort; Power Line Carrier; Hysteresis; Competitive Utility; Peace!

An eco-industrial park is a community of manufacturing and service businesses seeking enhanced environmental and economic performance through collaboration in managing environmental and resource issues including energy, water, and materials. By working together, the community of businesses seeks a collective benefit that is greater than the sum of the individual benefits each company would realize if it optimized its individual performance only...The goal of an EIP is to improve economic performance of the participating companies while minimizing their environmental impact (Lowe and Warren, 1996: 7.8). Lowe, Ernest and John L. Warren. 1996. The Source of Value: An Executive Briefing and Sourcebook on Industrial Ecology. Richland, Washington: Pacific Northwest National Laboratory.

Communities can meet the demand for services without spending on new infrastructure. It is conceivable that public agencies could be recast as public-private utilities. They would have authority to issue bonds to build and maintain infrastructure, with debt service supported by user fees or taxes. Properly designed and regulated, the infrastructure utilities would work with local public agencies to pursue mutual planning goals. Weiman, Clark, "Downsizing Infrastructure," TECHNOLOGY REVIEW, pages 49-55 (May/June 1996).

"A community of entities seeking enhanced environmental and economic performance through collaborations in managing environmental and resource issues including energy, water, and materials. By working together, the community of entities seeks a collective benefit that is greater than the sum of the individual benefits each company would realize if it optimized its individual performance only...a community of bilateral exchanges, symbiotic relationships, each arrangement providing feedstock for less than the cost of virgin materials, or proving to be the least-cost alternative to compliance with environmental regulations." David Allen, Henry Beckman Professor of Chemical Engineering, University of Texas Letter, TECHNOLOGY REVIEW, August/September 1996.

What role should industry play in visualizing the 21st century electricity industry, what role will industry play in realizing that vision, and who, exactly, is "the industry? Those nswers will determine the regulation and governance of the industry occurring at multiple overlapping levels, how these levels coordinate and collaborate, and what are the gaps? In other words, for example, where lies the jurisdiction?

Jurisdictional Stakeholders consider: 1. Do they share the same mission, and if not, are the differences compatible? 2. Can each of the policymakers and the industries they oversee carry out a multidiscipline initiative under existing single-discipline statutes? 3. Can the parties execute a coherent national policy within a diverse regulatory system in which the broadest authority resides at the state level? 4. Will policymakers authorize recovery of and returns on investment sufficient to induce long-term capital investments during an era when customers insist on keeping rates low? 5. How do the regulators or legislators induce utility innovation—or penalize its absence? 6. How do policymakers ensure that incumbent utilities plan and operate evenhandedly, where the utility has incentive and opportunity to exploit its special status? 7. How can decisionmakers achieve industry-wide acceptance of the smart grid's public-interest prerequisites?

Seventy-five years ago, Congress drew lines between federal and state jurisdiction over the electric industry. Since then, almost everything has changed. We used to have state-based, vertically integrated utilities with monopolies over retail service and most wholesale generation service. We still have some of those companies, but we also have regional markets, served by a host of new players, including distribution-only companies, wholesale generation companies, transmission companies, and nonprofit regional transmission operators. Some states have added retail competition. And electricity is no longer the only service available -- now there are demand resources, "ancillary services," and transmission-only companies. And some markets haven't changed at all. What hasn't changed much is the 1935 division of jurisdiction between federal and state regulators. This meshing of modern complexity with New Deal simplicity causes much confusion and uncertainty.

Consider the following example: In the matter of the IGCC Power Plant and Lignite Coal Mine presently before the Mississippi Public Service Commission, among other things, the utility relies on FERC principles, state procedural custom and practice and generally accepted accounting for Construction Work In Progress ("CWIP"). FASAB sets forth Standard General Ledger CWIP account definition: "includes costs of direct labor, direct material, and overhead incurred in the construction of general property, plant, and equipment (except information technology software) for which the agency will be accountable. Upon completion, these costs will be transferred to the proper capital asset account as the acquisition cost of the item." The utility has stated that generally accepted accounting principles supercede state regulation. This matter warrants separate opinion letters rendered under FERC review and FASAB review.

Because electricity requires so much primary energy and wastes so much of that in the conversion, first and foremost I think people will want to be able to apply the least amount necessary to accomplish their purpose. Thus, easy-to-use controls for amount and timing will be key so that people need only use electricity when, where and in the exact amount necessary. The faster horse problem for electricity is that, fundamentally, no one wants to buy electricity. They want to achieve various outcomes that require energetic work. We simply decided early on to split this need into a "fuel" and all of the other pieces of hardware and software required in a given outcome. Because this split is so ingrained in the thinking, overcoming it will take time and require support.

Consumers desire innovation in the goods and services that result from the application of electric power. Maximum technical potential is the improvement in end-use electric energy efficiency that could result if the most efficient electric technologies known today wre to attain complete market saturation. The term technical potential refers to"maximum technology" scenarios that are used to estimate what is possible in the sector, and therefore do not include cost and economic analyses such as assessing market penetration or projecting how the sector might evolve. NREL Assessment of the Technical Potential for Achieving Net Zero-Energy Buildings in the Commercial Sector, December 2007. Aggressive energy-efficiency initiatives in the South could prevent energy consumption in the RCI sectors from growing over the next twenty years. Fewer new power plants would be needed with a commitment to energy efficiency. Increased investments in cost-effective energy efficiency would generate jobs and cut utility bills. Energy efficiency would result in significant water savings. Southeast Energy Efficiency Alliance ENERGY EFFICIENCY IN THE SOUTH, April 12, 2010. Consider, for example, an energy conservation alternative for industrial facilities, which comprise 74% of the forecasted increase in energy needs of 2.2 million MWh between 2009 and 2014, or 440,000 MWh annually, suggested before the Mississippi Public Service Commission: Meridian Naval Air Station Naval Facilities Engineering Command (NAVFAC) Southeast $3.2 million Energy Conservation Project (ECP) forecasts a savings of 1,889 MWh per year due to a energy conservation project; Using NAS Meridian as an industrial example, approximately 500 industrial facilities (as per utility 2008 Depreciation Study) saving 1,889 MWh per year equals 944,500 MWh annual total, a surplus of 504,500 MWh annually. In order for a customer at the lower voltages on the distribution system to consume 1,000 kWh of energy, the utility must produce approximately 1,070 kWh at the generation level. The loss multipliers adjust the average charge per kWh so that all customers are charged on the basis of the generation required to provide their service. (N.B. environmental regulations focus on the total emissions from generating plants. These emissions are a direct function of the amount of fuel burned, which in turn is directly related to the amount of energy used by customers and not directly related to the peak demand they place on the system. Therefore, the most appropriate way to calculate environmental compliance factors is on the basis of energy.) Or, consider NYC: "The city's electric bill could have been nearly $800,000 lower over a 10-year period if just four of the city's 4,000 facilities had installed more energy-efficient systems, according to the audit, which was completed June 30. It says that each one-percentage-point drop in energy consumption at city facilities would save the city $5.2 million a year. ... Targeting 39 sites makes little difference in a city with 4,000 facilities, making changes at the places with the most room for improvement is the smartest way to reduce the city's energy use, installing lightweight garage doors at sanitation facilities has saved the city $400,000 a year. " Audit City Not Saving on Energy - July 11, 2005 - The New York Sun. "New construction on the World Trade Center site and the Atlantic Yards, Columbia's expansion, the Goldman Sachs and New York Times buildings, the Fulton subway hub and the Second Avenue Line, and the Croton water filtration plant are just some of the developments that are expected to consume 175 megawatts a year by 2010 and another 500 megawatts on top of that by 2025" The Blackout of 2010 - January 27, 2006 - The New York Sun. "The public's job is to get rid of the obsolescence and to build up modernized systems based on presently available technology ... The public wants that no more be exacted from it for the use of a public good than the services rendered by said good are reasonably worth" Priest, A.J.G., Principles of Public Utility Regulation: Theory and Application (1969), p. 377. "End-use energy efficiency remains a critically underutilized resource in the United States; This resource will become strategically more important as carbon constraints and affordability of energy create greater economic challenges to energy companies and consumers; The potential size of the energy efficiency resource is a matter of ongoing debate and analysis; estimates range from 10–25% of total U.S. electricity consumption; The upward bound on this potential is likely to grow as technology advances and as regulators and policy makers elevate its strategic priority Advancing the Efficiency of Electricity Utilization - "Prices to Devices": Background Paper, 2006 EPRI Summer Seminar. Section 529 (a) of the Energy Independence and Security Act of 20071 (EISA 2007) requires the Federal Energy Regulatory Commission (Commission or FERC) to conduct a National Assessment of Demand Response Potential (Assessment). EISA 2007 also requires that the Commission take advantage of preexisting research and ongoing work and insure that there is no duplication of effort. This peak demand can be reduced by varying levels of demand response -- Changes in electric usage by end-use customers from their normal consumption patterns in response to changes in the price of electricity over time, or to incentive payments designed to induce lower electricity use at times of high wholesale market prices or when system reliability is jeopardized. The amount of demand response potential that can be achieved increases as one moves from the Business-as-Usual scenario to the Full Participation scenario. FERC Staff Report, June 2009. When asking"how does one define 'Best-Use' of public goods?" take the example of the development of Jamaica Bay in New York and the reconciliation of the public's need for open space with its need for commercial development. The commercial demands of freight transportation had considered Jamaica Bay as a large marine terminal. Ultimately, the public need for open space prevailed. Ironically, the outcome was not so much because open space may have been the Best-Use, but rather because freight terminals could be better served by rail service than water. Insufficient supply can be offset by reduced demand; but demand can only be reduced to the extent that there is no [equivalent] substitute. Inefficient exchange can be checked & balanced by increased supply; but supply can only be increased to the extent that conversion is cost-effective. A reduced supply or demand can be checked & balanced by a [more] stabilized infrastructure; but infrastructure can only become more efficient and stable to the extent that supply or demand cannot meet each other faster than allowed by the characteristic"exchange rate". Interactivity exists when the reaction time for supply-demand to reach equilibrium is negligible. Consumers want adequate service, without discrimination or different units of essentially the same service at price differentials not corresponding to differences in supply costs. The optimal price of electricity is the cost of operating additional capacity plus the marginal cost of an effective addition to capital. Performance Issues for a Changing Electric Power Industry, DOE/EIA-0586, (Energy Information Administration, January 1995) p. 46. The costs associated with the loss of electric service to an additional consumer during a shortage must equal the cost of an additional unity of capacity, thereby adding capacity until its marginal cost is equal to the marginal cost of a loss of electric service. Ibid, pp. 45-47. Interruptions in service include extreme fluctuations in voltage. Higher voltage means that the utility sells more electricity; electric power at 126 volts uses more electricity than the same set at 114 volts. (N.B. In order for a customer at the lower voltages on the distribution system to consume 1,000 kWh of energy, the utility must produce approximately 1,070 kWh at the generation level. The loss multipliers adjust the average charge per kWh so that ALL customers are charged on the basis of the generation required to provide their service.) Consumers do want be held captive to revenue burden due to lost loads. Consumers want regulators held in violation of due process for failure to follow the procedures in the statutes for establishing a rate. "Each customer is responsible for the cost effectiveness of the rate under which they are served" John Studebaker. Electricity Retail Wheeling Handbook, The Fairmont Press (1995); Maximizing energy savings and minimizing costs, The Fairmont Press, Inc.(2009). A municipal consumer class can mitigate the discrimination, inequities, and subsidies inherent in utility rates deemed econcomic-development rates. "The New York Times reported that a subsidiary of a New Jersey electric utility [had] proposed a transmission line under the Hudson River to link a gas-fire generating plant to Manhattan. It had all the necessary permits, and money in the bank, but would not spend the money until it had long-term commitments for purchasers to buy the electricity. The Empire Connection project was proposed to carry approximately 2,000 megawatts of power from upstate New York to New York City. The project is composed of two high-voltage direct-current lines along railroad and highway rights-of-way into Manhattan. According to the New York Times, the contractor, with preliminary financing from Wall Street and regulatory endorsements, held an auction in March 2004 for potential customers and investors. The auction was canceled, for lack of interest; potential buyers of power failed to show up. This is a market issue, not a political or reliability issue" http://www.nysun.com/opinion/letters-to-the-editor-2004-08-19/505/ ###

"If there were efficient conversion methods, electrical energy could be stored as a fuel rather than directly as stored charge. This is often discussed in terms of a hydrogen economy, but that is by no means the only fuel of interest. Solid-oxide fuel cells, which operate at high temperatures, could allow distributed electrical generation from natural gas or regenerated fuels created from excess electrical power, or allow supplementation of the grid during peak power periods" Electricity Now and When. Marc Lavine, Phillip Szuromi, and Robert Coontz. Science 18 November 2011:921. "Fuel cells are uniquely capable of overcoming combustion efficiency limitations (e.g., the Carnot cycle). However, the linking of fuel cells (an energy conversion device) and hydrogen (an energy carrier) has emphasized investment in proton-exchange membrane fuel cells as part of a larger hydrogen economy and thus relegated fuel cells to a future technology. In contrast, solid oxide fuel cells are capable of operating on conventional fuels (as well as hydrogen) today. The main issue for solid oxide fuel cells is high operating temperature (about 800°C) and the resulting materials and cost limitations and operating complexities (e.g., thermal cycling). Recent solid oxide fuel cells results have demonstrated extremely high power densities of about 2 watts per square centimeter at 650°C along with flexible fueling, thus enabling higher efficiency within the current fuel infrastructure. Newly developed, high-conductivity electrolytes and nanostructured electrode designs provide a path for further performance improvement at much lower temperatures, down to ~350°C, thus providing opportunity to transform the way we convert and store energy" Lowering the Temperature of Solid Oxide Fuel Cells. Eric D. Wachsman, Kang Taek Lee. Science 18 November 2011, Vol. 334 no. 6058 pp. 935-939, DOI: 10.1126/science.1204090.

Graphene Double-Layer Capacitor with ac Line-Filtering Performance. John R. Miller, R. A. Outlaw, B. C. Holloway. SCIENCE VOL 329 24 SEPTEMBER 2010.

Performance Metrics in Electrochemical Energy Storage. Y. Gogotsi, P. Simon. Science 18 November 2011: Vol. 334 no. 6058 pp. 917-918 DOI: 10.1126/science.1213003.

Electrical Energy Storage for the Grid: A Battery of Choices Bruce Dunn, Haresh Kamath, Jean-Marie Tarascon Published 18 November 2011, Science 334, 928 (2011) DOI: 10.1126/science.1212741

Storage!!! i think the whole ballgame is storage. cold fusion would be nice!

The technology I believe we need most is what I call technology with a capital "T" -- the broader technology which means how we accomplish outcomes, including the all-important working with and supporting each other. I think we have all of the gadgets -- technology with a little "t" -- that we need. What we are lacking is clarity on the outcomes in which the gadgets may play a role and systemically what else is necessary to achieve the outcomes over time. Moreover, we need to revisit the Technology expressed in how we regulate this industry to make room for the ongoing innovation and adaptation that the coming decades will require.

Permanent Nuke Waste Storage

Industry is the wrong word because it is the system that is where the visualization and realization must happen. Industry includes those making things that use or manage electricity, those that produce and deliver electricity, those that sell electricity and, sometimes, it includes those who regulate these activities in one way or another. But it does not include those who use electricity to accomplish work. The "industry" needs to collaborate to offer those who are using electricity something other than just a "faster horse." Those who are using electricity need to think in terms of what they want to accomplish and be open to offers that help them do that, rather than just help them buy electricity.

Industry, as the subject matter experts for their systems and over all grid operations, should play the lead for any efforts to visualize the 21st century electricity industry. Industry, as the owners and operators, will be responsible for implementing that vision, justifying rates and costs, planning and siting new projects, and working through the regulatory hurtles that are sure to exist. 'The industry' are the owners and operators generation, transmission, and distribution services, as well as the vendors and ancillary services that support the processes and infrastructure required for the functions of the electric grid.

1. Retail electricity customers need to have a connection with their energy use, having a meter on the outside wall is antiquated and does nothing to make the human connection with electricity and demand-side management. 2. Electricity rates will continue to rise, causing a series of positive and negative economic impacts. 3. Utilities are not keeping up with technological changes because they are risk adverse. -State and federal agencies need to continue to establish policies and incentives that aggressively push all utilities to support DSM, efficiency and renewables. For example, why doesn't every city, county and state have stringent efficiency standards like California? -Why are electrical meters still on the back walls of retail customers? -Why aren't geographically linked utilities having multiple commonalities, such as air, water, regional location, required to do joint resource planning?

Natures' power (sun/wind/oceans/rivers) and cleaned-atomic sources must be generated captureable and storeable.

"The industry" all those entities who have a role in the generation, distribution, transmission of electricity. The industry has an important role but they willl always be driven by members and/or shareholders which compromises their ability to visualize the 21st century electricity industry.

The industrial infrastructure must be transformed and sources of electricity must be re-allocated because the status quo is unfair and unsustainable. Corporate oligarchs will continue to dominate policy, capital formation, and regulation as foreign governments position their industries for global market share. Industry: manufacturing, processing into final products using fixed capital and electricity.

Industry obviously must play a major role in visualizing the 21st century electricity industry since much of the existing infrastructure will provide the service. While industry has traditionally been confined to traditional investor owned and municipal/coop utilities, the concept should be expanded to include independent producers of electricity, solar manufacturers, independent transmission owners, consumer advocates, urban planners, architects and engineers and trade associations as well as unions. Public utility commissions will continue to have an integral role in steering the transition of this industry. In thinking about the future of the electric industry, it is important to consider the importance of facility siting problems. Many "green" energy projects are foundering because of localized opposition to proposed facilities. Finally, the future of the grid will depend upon the industry structure that manages the grid. If the predominant mode continues to be dominated by conventional investor owned utilities, we will continue to rely on expanding the existing network of long-distance transmission lines, however, if a more community-based approach is used, different types of facilities will be built. Facilities planners need to be mindful of the full implications of dispersed generation when proposing new projects.

Industry has a vital role to play in visualizing and realizing a 21st century vision. "Industry" refers to stakeholders, including electric utilities, retail energy suppliers, generating companies, on-site service providers, manufacturers and vendors of new technologies and equipment, and the electricity consumers theselves as they become more engaged and actively involved. The role of government (legislators and regulators) is especially important, even as this role shifts from central planning (fully regulated utilities) to a more consumer-focused, market-driven industry where consumers have an ever-increasing array of choices on site and from competitive suppliers. Yes, even in fully regulated areas, consumers will demand an increasing variety of choices, and energy solution providers will satisfy the demand for products and services that are outside the purview of electric utilities.

Too often, the "industry" has been viewed as the investor-owned utilities and the regulators that "regulate" them. In fact, the industry is much broader than that, and needs to include the full spectrum of players, including national, state and regional policymakers; cooperative & municipal utilities (both management and boards); consumer advocates; environmental advocates; research institutions; manufacturers; national, state, regional, and local nonprofit organizations; organizations involved with the spectrum from traditional fuels to renewable energy to energy efficiency; financial institutions and lenders; and organizations representing industrial, commercial, residential, low-income, senior and other customer groups. To truly visualize the 21st century electricity industry all of these groups need to be represented and ENGAGED in the process.

1. Assumption: More and more end-uses will use electricity and involve digital equipment driving both demand growth and reliability needs. Priority: Aggressive pursuit of demand-side management including demand response, load management, and energy efficiency. 2. Assumption: Environmental concerns (including climate change) will be an increasing factor in electric resource decision making. Priority: Aggressive investment in clean energy alternatives to bring costs down and make environmental protection more affordable. 3. Assumption: IT will play an ever growing role in electric T&D opening new opportunities for consumers and suppliers and creating new cyber security-related risks and threats. Priority: Aggressive collaboration and coordination at national and international levels for standards, protocols, and better business practices for interoperability and cyber security.

Availability and costs of energy sources and other materials required to make electricity; total electricity use locally, federally and globally; pace of change within the system. I would like to see the last one addressed first. While there is much uncertainty outside the system, we can be much more certain about and clearer on the pace of change (an d the direction of that change) within the system. I would also like to see much more discussion around domestic coal and natural gas availability and cost/price assumptions.