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Posts Tagged ‘Rolling Blackouts’

The Great California Exodus | Mises Wire

Posted by M. C. on October 13, 2020

Not only is California going through power shortages but also suffering a government-induced water shortage. The state allowed clean fresh water to travel from rivers into the Pacific Ocean, refusing to consume the natural resource as part of efforts to appease green zealots. The other problem is that farmers are exempt from water restrictions and do not pay market prices. And yet residents can face fines of up to $500 per day if they take a long shower.

https://mises.org/wire/great-california-exodus?utm_source=Mises+Institute+Subscriptions&utm_campaign=0ca5137676-EMAIL_CAMPAIGN_9_21_2018_9_59_COPY_01&utm_medium=email&utm_term=0_8b52b2e1c0-0ca5137676-228343965

Andrew Moran

German author Franz Kafka wrote in The Metamorphosis, “There is an infinite amount of hope in the universe…but not for us.” The legendary writer might as well have been writing about the state of California, a progressive wasteland that is the personification of everything wrong with leftist orthodoxy. In the mid-nineteenth century, when it became a state, tens of thousands of people headed west. Today, those with a modicum of judgment and respect for their pocketbook are heading anywhere that is not named California, attempting to flee the incompetent mismanagement of Governor Gavin Newsom and his Democratic friends in Sacramento on every subject, from the economy to civil liberties.

The Exodus: A Primer

 California may be the most populous state in the Union, but it could transform into the exodus capital of America. The Golden State has witnessed its population stall, declining slightly from 39.96 million to 39.78 million in the second half of 2019, according to the Department of Finance.

Growth has slowed close to zero or even declined in most coastal counties. The San Francisco Bay Area advanced, and counties east of Los Angeles witnessed modest growth. However, Los Angeles County shed residents for the second consecutive year in 2019. It is unclear how severe the population drop is in the aftermath of the Coronavirus pandemic and the state government’s proposed tax hikes.

Contrary to internet mythos, it is not only high-income earners who are packing up their things and saying goodbye to Newsom. Studies, including one from the Public Policy Institute of California and another by the Empire Center for Public Policy, have found that poorer households are more likely to flee than their affluent counterparts. But considering the policing being proposed or enacted, it is safe to say that the wealthy have no reason to be some of the left behinds.

California Nightmarin’

In August, California Democrats proposed a significant tax hike on the wealthy. The Assembly legislation includes raising the top income tax rate to 16.8 percent, retroactive to January of this year. It would boost the top rate to 14.3 percent for households earning more than $1 million, 16.3 percent on income over $2 million, and 16.8 percent on income above $5 million. A separate bill would slap a 0.4 percent tax on assets topping $30 million.

While this is damaging to the economy and may be considered isolated to the rich, everything else that California is doing is hurting and will continue to hurt everybody else.

 Newsom recently signed an executive order that phases out the sale of all gasoline-powered automobiles by 2035. The EO will still permit these cars to be owned and sold on the used car market, but the measure will certainly push consumers to switch to the heavily subsidized electric vehicle market.

In a statement, Newsom also endorsed a ban on petroleum fracking. However, instead of taking executive action, he urged the California Legislature to adopt prohibitions or restrictions on fracking. This could potentially impact the more than 360,000 people who are employed in the oil and gas sector.

Despite being one of the wealthiest jurisdictions in the world, California is mirroring Venezuela by enduring rolling blackouts. For the first time in nearly twenty years, California is launching planned blackouts, prompting the governor to concede that the state needed to “sober up” about renewable energy sources failing to offer enough power for millions of residents at peak demand.

Although local left-leaning politicians and the mainstream press will allude to the widespread wildfires as evidence of climate change, it has been years of gross negligence contributing to the disaster. As Liberty Nation wrote in January 2019:

Most forests are engulfed in dead trees. The saplings are crushed together and consume the water that old-growth trees need, causing them to endure an infestation of pests and a precipitous slide to death. What is necessary is thinning, which can be performed by private logging firms.

Not only is California going through power shortages but also suffering a government-induced water shortage. The state allowed clean fresh water to travel from rivers into the Pacific Ocean, refusing to consume the natural resource as part of efforts to appease green zealots. The other problem is that farmers are exempt from water restrictions and do not pay market prices. And yet residents can face fines of up to $500 per day if they take a long shower.

California has even targeted freelancers as part of politicians’ crusades to save them from the free market’s vile exploitation. Last year, the governor signed into law AB5, a bill that would mandate companies to reclassify freelancers and contingent workers as full-time employees. Organized labor celebrated, but the laborers were outraged—and with good reason. In the immediate aftermath of the legislation, businesses let go of their freelancers, while professional freelancers lost thousands of dollars in income. The state has pivoted slightly, but instead of fully conceding the error of its ways, lawmakers insist AB5 is great.

Despite facing a tremendous budget gap and a pension crisis, the state is hatching a plan for slavery reparations.

And, worse, this is all in addition to the plethora of Coronavirus restrictions Newsom and his pals at the local level have introduced over the last six months.

The list of boondoggles, blunders, and botches can go as long as the lineup to the exit door.

#DontCaliforniaMyArizona

The situation in California has had a snowball effect. Every progressive prescription that has done more harm than good has converted the snowball into an avalanche, leading folks to the nearest exit. They want to hop off the ultraleftist train and find greener pastures. Many prominent figures are either waving goodbye or grieving about the situation. Ben Shapiro and The Daily Wire team have packed up their supplies and are headed to Nashville. Joe Rogan grabbed his cowboy hat and supply of DMT and sought refuge in Texas. Los Angeles Dodgers superstar Mookie Betts griped that the tax rates are crazy. Will you be next? If you have left-leaning views and travel to Texas or Arkansas, be sure to remember the hashtag #DontCaliforniaMyArizona.

Originally published by Liberty Nation. Author:

Andrew Moran

Andrew Moran is the Economics Correspondent at LibertyNation.com and is the author of The War on Cash. You can find more of his work at AndrewMoran.net.

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California’s Looming ‘Green New Car Wreck’ | Watts Up With That?

Posted by M. C. on October 3, 2020

And it isn’t just me saying this. The U.S. Environmental Protection Agency (EPA) agrees. In a letter sent by EPA Administrator Andrew Wheeler to Gavin Newsom on September 28, Wheeler wrote:

“[It] begs the question of how you expect to run an electric car fleet that will come with significant increases in electricity demand, when you can’t even keep the lights on today.

“The truth is that if the state were driving 100 percent electric vehicles today, the state would be dealing with even worse power shortages than the ones that have already caused a series of otherwise preventable environmental and public health consequences.”

https://wattsupwiththat.com/2020/10/02/californias-looming-green-new-car-wreck/

Anthony Watts

Governor Newsom announces major climate initiative, September 23, 2020. (Screenshot via California Gavin Newsom)

On September 23, California Gov. Gavin Newsom issued an executive order that will ban the sale of gasoline-powered cars in the Golden State by 2035. Ignoring the hard lessons of this past summer, when California’s solar- and wind-reliant electric grid underwent rolling blackouts, Newsom now adds a huge new burden to the grid in the form electric vehicle charging. If California officials follow through and enforce Newsom’s order, the result will be a green new car version of a train wreck.

Let’s run some numbers. According to Statista, there are more than 15 million vehicles registered in California. Per the U.S. Department of Energy, there are only 256,000 electric vehicles registered in the state—just 1.7 percent of all vehicles.

Using the Tesla Model3 mid-range model as a baseline for an electric car, you’ll need to use about 62 kilowatt-hours (KWh) of power to charge a standard range Model 3 battery to full capacity. It will take about eight hours to fully charge it at home using the standard Tesla NEMA 14-50 charger.

Now, let’s assume that by 2040, five years after the mandate takes effect, also assuming no major increase in the number of total vehicles, California manages to increase the number of electric vehicles to 25 percent of the total vehicles in the state. If each vehicle needs an average of 62 kilowatt-hours for a full charge, then the total charging power required daily would be 3,750,000 x 62 KWh, which equals 232,500,000 KWh, or 232.5 gigawatt-hours (GWh) daily.

Utility-scale California solar electric generation according to the energy.ca.gov puts utility-scale solar generation at about 30,000 GWh per year currently. Divide that by 365 days and we get 80 GWh/day, predicted to double, to 160 GWh /day. Even if we add homeowner rooftop solar, about half the utility-scale, at 40 GWh/day we come up to 200 GW/h per day, still 32 GWh short of the charging demand for a 25% electric car fleet in California. Even if rooftop solar doubles by 2040, we are at break-even, with 240GWh of production during the day.

Bottom-line, under the most optimistic best-case scenario, where solar operates at 100% of rated capacity (it seldom does), it would take every single bit of the 2040 utility-scale solar and rooftop capacity just to charge the cars during the day. That leaves nothing left for air conditioning, appliances, lighting, etc. It would all go to charging the cars, and that’s during the day when solar production peaks.

But there’s a much bigger problem. Even a grade-schooler can figure out that solar energy doesn’t work at night, when most electric vehicles will be charging at homes. So, where does Newsom think all this extra electric power is going to come from?

The wind? Wind power lags even further behind solar power. According to energy.gov, as of 2019, California had installed just 5.9 gigawatts of wind power generating capacity. This is because you need large amounts of land for wind farms, and not every place is suitable for high-return wind power.

In 2040, to keep the lights on with 25 percent of all vehicles in California being electric, while maintaining the state mandate requiring all the state’s electricity to come from carbon-free resources by 2045, California would have to blanket the entire state with solar and wind farms. It’s an impossible scenario. And the problem of intermittent power and rolling blackouts would become much worse.

And it isn’t just me saying this. The U.S. Environmental Protection Agency (EPA) agrees. In a letter sent by EPA Administrator Andrew Wheeler to Gavin Newsom on September 28, Wheeler wrote:

“[It] begs the question of how you expect to run an electric car fleet that will come with significant increases in electricity demand, when you can’t even keep the lights on today.

“The truth is that if the state were driving 100 percent electric vehicles today, the state would be dealing with even worse power shortages than the ones that have already caused a series of otherwise preventable environmental and public health consequences.”


California’s green new car wreck looms large on the horizon. Worse, can you imagine electric car owners’ nightmares when California power companies shut off the power for safety reasons during fire season? Try evacuating in your electric car when it has a dead battery.

Gavin Newsom’s “no more gasoline cars sold by 2035” edict isn’t practical, sustainable, or sensible. But isn’t that what we’ve come to expect with any and all of these Green New Deal-lite schemes?

I acknowledge the help of Willis Eschenbach in checking the numbers for this article.


Anthony Watts is a senior fellow for environment and climate at The Heartland Institute. He is also an owner of an electric vehicle in California.

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PG&E’s Failures Show the Dangers of Government-Imposed Utility Monopolies | Mises Wire

Posted by M. C. on November 9, 2019

When a company screws up so horribly, letting down literally millions of its customers and moreover promising to continue doing so for another decade (!), the obvious question is: Why don’t they go out of business? Why doesn’t a competitor grab their market share?

The answer, of course, is that the California government forbids PG&E’s customers from switching to a competitor.

If we see the benefits of competition in trivial goods like soda and cereal, we should all the more so insist on competition for essentials like electricity and drinking water.

https://mises.org/wire/pges-failures-show-dangers-government-imposed-utility-monopolies?utm_source=Mises+Institute+Subscriptions&utm_campaign=91ad2769b8-EMAIL_CAMPAIGN_9_21_2018_9_59_COPY_01&utm_medium=email&utm_term=0_8b52b2e1c0-91ad2769b8-228343965

Although the roughly two million affected residents of Northern California are recovering from the rolling blackouts imposed by utility PG&E, the company has warned that these “fire safety outages” may be periodically required for another decade. Naturally, California Governor Gavin Newsom decried the debacle as yet another example of “greed and neglect.” Yet as IER analyst Jordan McGillis explained in a previous article, the episode actually showcases the dangers of a government-imposed monopoly in electricity provision. In this article, I’ll elaborate on McGillis’ insights and show why the conventional economic rationale for government regulation of electric utilities is fundamentally flawed.

PG&E’s Rolling Blackouts Not a Free-Market Outcome

When a company screws up so horribly, letting down literally millions of its customers and moreover promising to continue doing so for another decade (!), the obvious question is: Why don’t they go out of business? Why doesn’t a competitor grab their market share?

The answer, of course, is that the California government forbids PG&E’s customers from switching to a competitor. Let me quote directly from McGillis who gets to the heart of the matter:

PG&E does not function as would a company in a competitive marketplace. As a regulated monopoly, it has been granted status as the sole provider of electricity to a swath of the state stretching more than 500 miles from Eureka, north of the Bay Area, to Bakersfield, in the San Joaquin Valley. The company operates in tandem with the California Public Utilities Commission (CPUC), a panel of regulators appointed by the governor. Unlike in a competitive marketplace, PG&E does not need to compete for customers by offering more value dollar-for-dollar than other companies. Instead PG&E is guaranteed a rate of return on its investments and establishes with the CPUC the corresponding rates that customers will pay.

So we’ve solved the most immediate puzzle: The reason PG&E can get away with such outrageous mismanagement and shoddy customer service, is that the California government literally guarantees them their business. It is illegal for another company to try to entice PG&E’s disgruntled customers to switch their patronage.

Companies in an Open Market Love Periods of “High Demand”

Although the outrageous episode of PG&E is fresh in our minds, this is nothing unusual. Every summer, it is commonplace for utilities to urge their customers to “conserve power” by keeping their air conditioners at an uncomfortable setting, and they often impose rolling blackouts or “brownouts” in order to maintain the integrity of the grid.

Notice that you never see this type of behavior from genuinely private sector companies? Even though people greatly increase their consumption of beer and hot dogs during July, you never see Budweiser or Oscar Mayer imposing temporary outages on their customers.

On the contrary, companies in an open market love it when the public suddenly wants to buy more of their product or service. It’s only in the realm of government-regulated utilities (or services directly provided by a government agency) where the customers are viewed as annoying nuisances, who need to be scolded to stop consuming so much.

Different Incentives, Different Results

Any adult American reading my article surely can agree—regardless of your politics—that I am speaking the truth. To repeat, you simply do not see private companies in (relatively) open markets operating the way PG&E and other “public utilities” do. So the mismanagement and shoddy service of PG&E can’t possibly be the fault merely of corporate greed and neglect. Rather, the difference is due to the institutional structure and incentives that the government sets up…

Conclusion

The PG&E debacle showcases the flaws of government-regulated monopolies. This is not an isolated incident, but is typical of the entire model. Yes, there are practical reasons that free and open competition might not work as smoothly with services requiring large infrastructure spending, but these complications pale in comparison to the dangers of having government outlaw competition. If we see the benefits of competition in trivial goods like soda and cereal, we should all the more so insist on competition for essentials like electricity and drinking water.

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Monopolies In A Stateless Society - The Art of Not Being ...

 

 

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