DEL.ICIO.USEnergy independence impossible, Southern Co. CEO says
Global demand, competition too great, he says; alternate energy advocates disagree
The Atlanta Journal-Constitution
Monday, November 17, 2008
Remember that “energy independence” everybody talked about so much during the presidential race?
It isn’t possible, according to the chairman and CEO of Atlanta utility giant Southern Co.
Speaking to a gathering of electric energy engineers in downtown Atlanta on Monday, Southern’s David Ratcliffe said growing electricity demand and global competition for the means to meet it make energy independence an illusion for most countries, including the United States.
“We’ve seen it with coal,” he said, speaking of the worldwide competition that has driven up U.S. coal prices.
“We’ve seen it with natural gas and, I would submit, we’ll see it with renewable (energy) technology.”
Global competition is also obvious to “those of us who are involved in the nuclear renaissance,” he said. Demand for equipment and parts needed for new reactors is fierce.
“Would I like for the U.S. to be energy independent?” asked Ratcliffe. “Absolutely.” But “energy independence is not a viable option,” he said.
“We need to abandon this notion.”
It’s not something alternative energy advocates either want to hear or agree with, after green energy gained momentum as a path to independence during the presidential campaign.
Told of Ratcliffe’s remarks, Steve Smith, head of the Southern Alliance for Clean Energy, said the company was clinging to old ways and only dabbling in new ones. With the incoming administration, “My sense is that they’ll lose.”
Ratcliffe was one of three keynote speakers at the sustainable energy infrastructure meeting of the Institute of Electrical and Electronic Engineers.
He characterized his remarks as a dose of reality for the energy debate.
Southern’s chief executive warned of daunting challenges for the electric industry at home and globally. Electric demand is estimated to grow 40 percent by 2030, and will slow only temporarily because of the current economic crisis, Ratcliffe said.
Power companies will need to spend up to $1.5 trillion to build adequate generation and infrastructure, he said. They need to “much more aggressively diversify the technology available to us” and to cooperate globally to get that technology.
Alternative energy sources and energy efficiency, often cited as the path toward independence, should be part of that, Ratcliffe said.
But, “We have to be realistic about what can be done in that regard.”
“We can do more. But we’re simply going to have to build more of something” else, he said.
New nuclear reactors — like those Southern plans in Georgia — and new low-emission coal plants — like the one Southern plans in Mississippi — are key, Ratcliffe said.
Ratcliffe took on T. Boone Pickens, who is pushing wind power expansion in the Southwest and Midwest and transmission upgrades to move that power nationally. Pickens recently called the nation’s power infrastructure “pathetic.”
“I told him we (Southern) do not operate a pathetic infrastructure,” Ratcliffe told the crowd. He said he’d like Pickens’ plan to work but that, “He would be better served if he saw us not as the enemy but as a partner.”
Whether the industry invests in wind or reactors, it is looking at huge capital outlays: “It will cost a great deal of money at a time when we’re facing grave uncertainty in the capital markets.”
“We are the most capital-intensive industry in the country, second to railroads,” Ratcliffe said.
Most utilities — not Southern — have less favorable credit ratings than they did 30 years ago. “It will be difficult for some to access capital markets. For all of us, no matter what our rating, capital will cost more.”
Clean energy advocates like SACE’s Smith see the financial crisis in a different light.
Interest in conservation, he said, will grow.
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Comments
By Timothy Locke
Nov 21, 2008 3:54 PM | Link to this
Renewable sounds wonderful. Wind power has no pollution and no fuel cost like manna falling from heaven. Why is it that no one tells America what the cost of electricity will do when renewable and alternate fuel are used for electric generation. Some how the debt for a wind turbine and the back up fossil generation will be paid for or no investment will be made. Amortization + operating expenses + maintenance cost = sales price. A large expense in CO2 sequestering will cost in the electric rates. Please educate America.
By RJ
Nov 18, 2008 4:05 PM | Link to this
This guy is stupid. But, I can see from his perspective why he does not want us to develop alternative sources of energy. he wants to continue increasing electricity rates. The day will come within the next few years when we can all live off the grid and tell Southern Company and the other utilities to go take a hike.
By zeke
Nov 18, 2008 12:22 AM | Link to this
Finally someone has the courage to tell the truth to the environmental radicals! Yes alternative energy is needed, but, it can only be a small part of the solution! We will use coal and oil for a long long time! It is time to intelligently realize this fact and make the best of it!
By Donald
Nov 17, 2008 9:43 PM | Link to this
At last, a real engineer rather than some wild-eyed fanatic who (1) doesn't understand how the universe works and (2) probably never took even high school level physics or mathematics. At least engineers can count and the numbers support Mr Ratcliffe.
By verge
Nov 17, 2008 9:42 PM | Link to this
This kind of small minded-- profits first thinking is what got us into this mess to begin with-- Mr Ratcliffe, lead, follow, or most likely please, please get out of the way...
By Damon
Nov 17, 2008 9:41 PM | Link to this
It's easy for politicians and non-engineers to complain and throw about mandates for clean power but when FPL gave people the option of paying more for "green" power no one wanted to pay the extra. We can have "green" power but we'll have to pay double or triple the cost. Southern Company is a quality utility and is only being reasonable. The politicians are the real problem by deceiving the gullible people.
By Helen Crane
Nov 17, 2008 8:46 PM | Link to this
Georgia know this: Georgia Power has no renewable energy (except for hydro- which was developed decades ago) while other states are doing all they can to avert climate change and free the U.S. from global fuel costs, Southern Company gets rich off the brown stuff. We are soon going to get wacked with an RPS (national mandate requiring each state to have a percentage of renewable- )and will be so woefully behind and really have to pay out the nose because they have been fighting it so long that we have NONE and will have to play catch up. Georgia power has more lobbyists at the state capitol than any other special interest group and they see to it that the profits are big, rates are high, and air is brown. They also are one of the largest investors in the nation's congress. They have infiltrated government at every venue and are arrogant and corrupt. Why don't you start BUILDING some renewable Southern- rather than send out press releases that never materialize and we will know what the potential is.
By See Through The BS
Nov 17, 2008 8:04 PM | Link to this
Look whio is giving their opinion THE CEO OF ONE OF THE LARGEST POWER COMGLOMERATES IN THE SOUTH! Of course the CEO of Southern Co. would not agree with energy independence! They own Georgia Power, Mississippi Electric, Alabama Power, SoCo Gas Company....etc. If the price would come down to obtainable levels, I would be more than willing to put solar panel on top of my roof, and store the power I don't use in batteries and this would be more than enough to power everything and then some for our home and we would never receive an electric bill ever again! So of course this and other power companies would discourage the use of alternate energy so that we will always be dependant on them and only them. The funny thing is that the power companies use alternate sources like water turbines and turn around and sell it to us at a huge profit with every rate increase that they pass on to us.
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