Articles by Sean Casten

Water limits on power plants

From Greenwire today (sub req'd): water availability may limit new power plants. This is widely appreciated in the power sector, but doesn't get as much attention elsewhere. It's especially acute as our population growth moves south and west where we are especially water-limited.

What's under-appreciated is that this is a story about efficiency. When two thirds of the fuel we burn in power plants is wasted as heat, and that heat is rejected in cooling towers (at least in coal and nuke facilities), any gain in energy efficiency is a reduction in water use. Given the huge gains available in efficiency, it ought to be central to this discussion. Also bear in mind that Clean Air Act compliance and carbon sequestration drive down the efficiency of coal plants, thereby increasing water use per MWh.

Excerpts of the full article below the fold:

Moving toward a better energy policy

There's a great line often ascribed to Yogi Berra: "If you don't know where you are going, you might wind up someplace else." This perfectly describes U.S. energy policy -- and offers a way forward that would not only create lots of social benefits, but just might make energy policy something that matters to U.S. electoral politics.

To see why, try ranking those events in political history when politicians really got it right. Declaration of Independence? Emancipation Proclamation? Man on the moon? Pick whichever ones you'd like. Here's my prediction: those great moments were all framed around goals we sought to achieve, without prejudice to the path we took to get there.

Why does this matter to energy policy? Because we've never had an energy policy that got beyond a narrow focus on the path.

On electricity deregulation

In The Karate Kid, Mr. Miyagi advises that "It is good to know karate. It is good not to know karate. It is not good to know a little karate." With the price caps now coming off in the few states that partially deregulated their electricity grids, there is a rising backlash against competitive markets, with some of that backlash even coming from normally pro-market groups like The Cato Institute. This backlashers generally argue that partial deregulation has taught us that deregulation doesn't work in the electric sector. But we ought to remember Mr. Miyagi's advice, lest we draw the wrong lessons from our little bit of karate.

This subject deserves more discussion on Grist, as evidenced by some of the debate which followed my last post. Let's take a closer look.

‘Carbon-friendly’ utilities may not necessarily be in the public interest

Following the discussion under David's latest post about Edwards' position on carbon capture at coal plants, I thought it appropriate to point out a few things about the electric business that are critical to this debate -- but not widely appreciated.

An electric utility is a weird amalgam of lots of historic political philosophies -- most of which are in direct contradiction to modern ideas, but are difficult to repeal.

According to the modern pro-market ideal, businesses should have profit incentives in competitive markets, so that Adam Smith's invisible hand will create consumer value. But to an early 20th-century regulator (who wrote the rules under which most modern electric utilities were formed), certain public goods were so important as to mandate government intervention. (One of the best examples is Einstein, who thought that Karl Marx had some really good ideas, in large part because he saw the problems of the world so clearly that he couldn't conceive of an unregulated market rising to address them. See here.)

This is indicative of an era in which socialism was a live concept rather than historical record, when regulators and academics could debate the pros and cons of central planning without any evidence of the excesses such systems could create. It was also an era when the excesses of the mercantilist Gilded Age were becoming evident, and smart, well-intentioned folks were looking for a better way.