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utility companies make big bucks selling their excess power to other utilities. there is no such thing as having enough capacity.
Not Long Island. We have the ability to transmit power out, but usually we just import it because the old Lilco plants are more expensive to run than to import from elsewhere. The old plants seldom run anywhere near full capacity anymore, it's been like this for several years now.
not true at all. i have been in the trading room watching them at lipa. they buy and sell on the national grid network like a wall street brokerage. there are many places they sell to.
Last edited by mathjak107; 07-21-2013 at 11:18 AM..
But it's power from other utilities being transmitted through LIPA lines that is bought and sold, not their own generated power. The newest Lilco plant is Northport #4, completed in 1976. Even with recent upgrades, it's woefully inefficient by today's standards. It doesn't run much, and when it does it's not always at full capacity, like it usually was when I worked there. Glenwood and Far Rockaway were from the early 50s, and are being dismantled right now.
long island is mostly lighting and hvac loads. they play havoc with power factor . that creates situations where the utility has to provide large amounts of power that basically go un-tracked in an electric meter .
all the transmission equipment has to be sized to provide an amount of power which a part of is un-metered.
they work that fact into the over all cost of electric.
the other big factor as to why rates are high is unlike other areas of the country that support manufacturing that runs production 24/7 we do not.
from 5:00pm on most of the capacity they need to provide during the day is un-compensated for at night.
Never thought of the point about manufacturing and 24/7 power consumption, though manufacturing is not only down on LI, it's has been migrated from many areas in the continental US. It seems utilities with extensive hydro-electric tend to provide the most competitive rates, but this begs the question... NYS has hydro-electric upstate (like at Niagra), yet, state-wide, it still has some of the highest electrical rates in the US. Independent Energy reports have shown the political environment and a 'compromised' regulatory body are the major factors in the high energy costs in NY.
Where else would they get money? They may also be obligated by state and/or federal law to have these programs, which may or may not come with funding. Either way, the ratepayer/taxpayer is funding it.
The federal government obligates them to have these programs as its lashed to funding money.
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