(c) 2010 F. Bruce Abel
This Friedman piece of July 13, 2010 attracted a lot of attention to this Blog. I like it too, obviously, if only because it highlights that Singapore is worth studying for its fine governance. And ministers are paid $1 million a year. So we know the best and the brightest are equal to the people they are regulating.
http://www.nytimes.com/2010/07/14/opinion/14friedman.html?hp
Showing posts with label friedman. Show all posts
Showing posts with label friedman. Show all posts
Sunday, August 8, 2010
Wednesday, July 14, 2010
Friedman: Op-Ed Columnist - The Spies Who Loved Us - NYTimes.com
(c) 2010 F. Bruce Abel
Sometimes Friedman is good by accentuating the negative!
Op-Ed Columnist - The Spies Who Loved Us - NYTimes.com: "Look, if you had told me that we had just arrested 11 Finns who were spying on our schools, then I’d really have felt good — since Finland’s public schools always score at the top of the world education tables. If you had told me that 11 Singaporeans were arrested spying on how our government works, then I’d really have felt good — since Singapore has one of the cleanest, well-run bureaucracies in the world and pays its cabinet ministers $1 million-plus a year. If you had told me that 11 Hong Kong Chinese had been arrested studying how we regulate our financial markets, then I’d really have felt good — since that is something Hong Kong excels at. And if you had told me that 11 South Koreans were arrested studying our high-speed bandwidth penetration, then I’d really have felt good — because we’ve been lagging them for a long time."
Sometimes Friedman is good by accentuating the negative!
Op-Ed Columnist - The Spies Who Loved Us - NYTimes.com: "Look, if you had told me that we had just arrested 11 Finns who were spying on our schools, then I’d really have felt good — since Finland’s public schools always score at the top of the world education tables. If you had told me that 11 Singaporeans were arrested spying on how our government works, then I’d really have felt good — since Singapore has one of the cleanest, well-run bureaucracies in the world and pays its cabinet ministers $1 million-plus a year. If you had told me that 11 Hong Kong Chinese had been arrested studying how we regulate our financial markets, then I’d really have felt good — since that is something Hong Kong excels at. And if you had told me that 11 South Koreans were arrested studying our high-speed bandwidth penetration, then I’d really have felt good — because we’ve been lagging them for a long time."
Sunday, May 16, 2010
Friedman - - We're All Day-Traders Now
(c) 2010 F. Bruce Abel
Friedman today, in part:
Op-Ed Columnist - In Athens, a Question From Lydia - NYTimes.com: "But that hasn’t been the trend. We’ve become absorbed by shorter and shorter-term thinking — from Wall Street quarterly thinking to politician-24-hour-cable-news-cycle thinking. We’re all day-traders now. We have day-thinking politicians trying to regulate day-trading bankers, all covered by people tweeting on Twitter."
Friedman today, in part:
Op-Ed Columnist - In Athens, a Question From Lydia - NYTimes.com: "But that hasn’t been the trend. We’ve become absorbed by shorter and shorter-term thinking — from Wall Street quarterly thinking to politician-24-hour-cable-news-cycle thinking. We’re all day-traders now. We have day-thinking politicians trying to regulate day-trading bankers, all covered by people tweeting on Twitter."
Wednesday, May 12, 2010
Friedman --Greece’s Newest Odyssey - NYTimes.com
Op-Ed Columnist - Greece’s Newest Odyssey - NYTimes.com: "Can Greece have a civic revolution? The odds are long, but you won’t need to consult the I.M.F. to determine the answer. Just watch Greek young people. In six months, if you see them migrating, then short Greece. If you see them sticking it out here, though, it means they think there is something worth staying for, and you might even want to buy a Greek bond or two."
Wednesday, January 27, 2010
Friedman -- Situational Values
(c) 2010 F. Bruce Abel
Friedman at his best.
comments
By THOMAS L. FRIEDMAN
Published: January 26, 2010
Maybe it’s just me, but I’ve found the last few weeks in American politics particularly unnerving. Our economy is still very fragile, yet you would never know that by the way the political class is acting. We’re like a patient that just got out of intensive care and is sitting up in bed for the first time when, suddenly, all the doctors and nurses at bedside start bickering. One of them throws a stethoscope across the room; someone else threatens to unplug all the monitors unless the hospital bills are paid by noon; and all the while the patient is thinking: “Are you people crazy? I am just starting to recover. Do you realize how easily I could relapse? Aren’t there any adults here?”
Post a Comment »
Sometimes you wonder: Are we home alone? Obviously, the political and financial elites to whom we give authority often act on the basis of personal interests. But we still have a long way to go to get out of the mess we are in, and if our elites do not behave with a greater sense of the common good we could find our economy doing a double dip with a back flip.
Dov Seidman, the C.E.O. of LRN, which helps companies build ethical cultures, likes to talk about two kinds of values: “situational values” and “sustainable values.” Leaders, companies or individuals guided by situational values do whatever the situation will allow, no matter the wider interests of their communities. A banker who writes a mortgage for someone he knows can’t make the payments over time is acting on situational values, saying: “I’ll be gone when the bill comes due.”
People inspired by sustainable values act just the opposite, saying: “I will never be gone. I will always be here. Therefore, I must behave in ways that sustain — my employees, my customers, my suppliers, my environment, my country and my future generations.”
Lately, we’ve seen an explosion of situational thinking. I support the broad proposals President Obama put forth last week to prevent banks from becoming too big to fail and to protect taxpayers from banks that get in trouble by speculating and then expect us to bail them out. But the way the president unveiled his proposals — “if those folks want a fight, it’s a fight I’m ready to have” — left me feeling as though he was looking for a way to bash the banks right after the Democrats’ loss in Massachusetts, in order to score a few cheap political points more than to initiate a serious national discussion about an incredibly complex issue.
President Obama is so much better when he takes a heated, knotty issue, like civil rights or banking reform, and talks to the country like adults. He is so much better at making us smarter than angrier. Going to war with the banks for a quick political sugar high after an electoral loss will just work against him and us. It will spook the banks into lending even less and slow the recovery even more.
That said, part of me can’t blame the president. The behavior of some leading Wall Street banks, particularly Goldman Sachs, has been utterly selfish. U.S. taxpayers saved Goldman by saving one of its big counterparties, A.I.G. By any fair calculation, the U.S. Treasury should own a slice of Goldman today. Goldman has been the poster boy for banks behaving by “situational values” — exploiting whatever the situation, or rules that it helped to write, allowed.
Also, President Obama tried to create a bipartisan commission to come up with a plan to reduce the national debt — a plan that would inflict pain on both parties by cutting some programs and raising some taxes. But the Republican leader, Senator Mitch McConnell, said the G.O.P. would not cooperate with any commission that proposes raising taxes. And some liberal Democrats rejected cutting their favorite programs. Way to take one for the country, guys.
Then let’s look at the unions — hardly paragons of sustainable thinking for the country. We all know they got more than their fair share in the General Motors settlement and in the Obama health care proposals because they could shake down the Democrats in return for votes.
And, finally, don’t forget both the Democratic and Republican senators who have decided to get a quick populist boost by turning one of the few adults we have left — Federal Reserve Chairman Ben Bernanke — into a piñata. No, Mr. Bernanke is not blameless for the 2008 crisis. But since then he has helped steer the country back from the brink and kept us out of a depression. He absolutely deserves reappointment.
No doubt, this is a lousy season to be the leader of any institution. We are in the midst of a long period of austerity, where all that most leaders will be able to do is cut, fire and trim. It is so easy to play populism and run against them. But this time is different. When our government is this deeply involved in propping up our economy, and the economy is this fragile, politics as usual will kill us. We badly need leaders inspired by sustainable values, not situational ones. Without that, we’ll just be digging our hole deeper and making the reckoning, when it comes, that much more ferocious.
RecommendNext Article in Opinion (2 of 27) » A version of this article appeared in print on January 27, 2010, on page A27 of the New York edition.
comments
E-Mail
Print
writePost();
Past Coverage
Bernanke Is Gaining Supporters (January 26, 2010)
Obama to Seek Spending Freeze to Trim Deficits (January 26, 2010)
Obama to Offer Aid for Families in State of the Union Address (January 25, 2010)
Volatility and Politics Are Feeding Fears of a Market Correction (January 25, 2010)
Related Searches
United States Economy Get E-Mail Alerts
Obama, Barack Get E-Mail Alerts
Bernanke, Ben S Get E-Mail Alerts
Banks and Banking Get E-Mail Alerts
what's this?
Bernanke's Debt SolutionCentral Banks To Change Value Of Money - What It Means For You.UncommonWisdomDaily.com/Banking
Theraflu ®Find Out Which Theraflu ® Treatment Is Right For You.www.TheraFlu.com
GE DASH Patient MonitorsNew, Demo and Refurbished Units Available 888-559-5253www.jakenmedical.com
Need a CMS?Drupal, Joomla, Magento websites The Open Source CMS Expertswww.waterandstone.com
Reverse Loan CalculatorTry Our Free Calculator Today, Find Out How Much You Qualify For Now!www.ReverseMortgageAdviser.com
Coroplast Yard Signs100 18x24 1 color/2 sides with 100 Double "H" stakes - $225.00www.decals-oem.com
Advertise on NYTimes.com
MOST POPULAR
E-Mailed
Blogged
Searched
The 3 Facebook Settings Every User Should Check Now
Well: Play, Then Eat: Shift May Bring Gains at School
Vital Signs: Exercise: In Women, Training for a Sharper Mind
Bob Herbert: Obama’s Credibility Gap
David Brooks: The Populist Addiction
With Apple Tablet, Print Media Hope for a Payday
Colleges Market Easy, No-Fee Sell to Applicants
Sidebar: After 34 Years, a Plainspoken Justice Gets Louder
Wide Fallout in Failed Deal for Stuyvesant Town
Cases: An Ill Father, a Life-or-Death Decision Go to Complete List »
Obama Seeks Freeze on Many Domestic Programs
In Apple Tablet, Print Media Hope for a Payday
Obama's Credibility Gap
Tea Party Disputes Take Toll on Convention
Democrats Put Stop on Health Overhaul
The Populist Addiction
The Bernanke Conundrum
U.S. Envoy's Cables Show Concerns on Afghan War Plans
Stuyvesant Town Turned Over to Creditors
Three Bombs Strike at Baghdad Hotels Go to Complete List »
haiti
china
january 3, 2010
facebook
krugman
modern love
obama
health care
radiation
apple Go to Complete List »
new Accordian("mostPopWidget");
Franchitti's favorites
Also in Autos »
BMW 3 series latest to get new turbo engine
Buy a pre-owned BMW
Advertisements
Inside NYTimes.com
Art & Design »
Coffin’s Emblem Defies Certainty
N.Y. / Region »
Ripped Picasso Is Only One of Many Art Mishaps
U.S. »
Courts as Battlefields in Climate Fights
Opinion »
Editorial: The Taliban Would Applaud
President Sarkozy is foolishly inciting anti-Muslim prejudices as a way to deflect public anger over high unemployment.
Dining & Wine »
Replicating Restaurant Dishes at Home
Opinion »
Op-Ed: State of the Union, in Dutch
Theater »
Life, Death and Family in Foote’s Texas
Travel »
Gaming the Luggage System
Opinion »
Appreciations: A Responsible Man
Robert B. Semple Jr. on how Charles Mathias ignored party disciplinarians and demagogues and acted on principle alone.
Friedman at his best.
comments
By THOMAS L. FRIEDMAN
Published: January 26, 2010
Maybe it’s just me, but I’ve found the last few weeks in American politics particularly unnerving. Our economy is still very fragile, yet you would never know that by the way the political class is acting. We’re like a patient that just got out of intensive care and is sitting up in bed for the first time when, suddenly, all the doctors and nurses at bedside start bickering. One of them throws a stethoscope across the room; someone else threatens to unplug all the monitors unless the hospital bills are paid by noon; and all the while the patient is thinking: “Are you people crazy? I am just starting to recover. Do you realize how easily I could relapse? Aren’t there any adults here?”
Post a Comment »
Sometimes you wonder: Are we home alone? Obviously, the political and financial elites to whom we give authority often act on the basis of personal interests. But we still have a long way to go to get out of the mess we are in, and if our elites do not behave with a greater sense of the common good we could find our economy doing a double dip with a back flip.
Dov Seidman, the C.E.O. of LRN, which helps companies build ethical cultures, likes to talk about two kinds of values: “situational values” and “sustainable values.” Leaders, companies or individuals guided by situational values do whatever the situation will allow, no matter the wider interests of their communities. A banker who writes a mortgage for someone he knows can’t make the payments over time is acting on situational values, saying: “I’ll be gone when the bill comes due.”
People inspired by sustainable values act just the opposite, saying: “I will never be gone. I will always be here. Therefore, I must behave in ways that sustain — my employees, my customers, my suppliers, my environment, my country and my future generations.”
Lately, we’ve seen an explosion of situational thinking. I support the broad proposals President Obama put forth last week to prevent banks from becoming too big to fail and to protect taxpayers from banks that get in trouble by speculating and then expect us to bail them out. But the way the president unveiled his proposals — “if those folks want a fight, it’s a fight I’m ready to have” — left me feeling as though he was looking for a way to bash the banks right after the Democrats’ loss in Massachusetts, in order to score a few cheap political points more than to initiate a serious national discussion about an incredibly complex issue.
President Obama is so much better when he takes a heated, knotty issue, like civil rights or banking reform, and talks to the country like adults. He is so much better at making us smarter than angrier. Going to war with the banks for a quick political sugar high after an electoral loss will just work against him and us. It will spook the banks into lending even less and slow the recovery even more.
That said, part of me can’t blame the president. The behavior of some leading Wall Street banks, particularly Goldman Sachs, has been utterly selfish. U.S. taxpayers saved Goldman by saving one of its big counterparties, A.I.G. By any fair calculation, the U.S. Treasury should own a slice of Goldman today. Goldman has been the poster boy for banks behaving by “situational values” — exploiting whatever the situation, or rules that it helped to write, allowed.
Also, President Obama tried to create a bipartisan commission to come up with a plan to reduce the national debt — a plan that would inflict pain on both parties by cutting some programs and raising some taxes. But the Republican leader, Senator Mitch McConnell, said the G.O.P. would not cooperate with any commission that proposes raising taxes. And some liberal Democrats rejected cutting their favorite programs. Way to take one for the country, guys.
Then let’s look at the unions — hardly paragons of sustainable thinking for the country. We all know they got more than their fair share in the General Motors settlement and in the Obama health care proposals because they could shake down the Democrats in return for votes.
And, finally, don’t forget both the Democratic and Republican senators who have decided to get a quick populist boost by turning one of the few adults we have left — Federal Reserve Chairman Ben Bernanke — into a piñata. No, Mr. Bernanke is not blameless for the 2008 crisis. But since then he has helped steer the country back from the brink and kept us out of a depression. He absolutely deserves reappointment.
No doubt, this is a lousy season to be the leader of any institution. We are in the midst of a long period of austerity, where all that most leaders will be able to do is cut, fire and trim. It is so easy to play populism and run against them. But this time is different. When our government is this deeply involved in propping up our economy, and the economy is this fragile, politics as usual will kill us. We badly need leaders inspired by sustainable values, not situational ones. Without that, we’ll just be digging our hole deeper and making the reckoning, when it comes, that much more ferocious.
RecommendNext Article in Opinion (2 of 27) » A version of this article appeared in print on January 27, 2010, on page A27 of the New York edition.
comments
writePost();
Past Coverage
Bernanke Is Gaining Supporters (January 26, 2010)
Obama to Seek Spending Freeze to Trim Deficits (January 26, 2010)
Obama to Offer Aid for Families in State of the Union Address (January 25, 2010)
Volatility and Politics Are Feeding Fears of a Market Correction (January 25, 2010)
Related Searches
United States Economy Get E-Mail Alerts
Obama, Barack Get E-Mail Alerts
Bernanke, Ben S Get E-Mail Alerts
Banks and Banking Get E-Mail Alerts
what's this?
Bernanke's Debt SolutionCentral Banks To Change Value Of Money - What It Means For You.UncommonWisdomDaily.com/Banking
Theraflu ®Find Out Which Theraflu ® Treatment Is Right For You.www.TheraFlu.com
GE DASH Patient MonitorsNew, Demo and Refurbished Units Available 888-559-5253www.jakenmedical.com
Need a CMS?Drupal, Joomla, Magento websites The Open Source CMS Expertswww.waterandstone.com
Reverse Loan CalculatorTry Our Free Calculator Today, Find Out How Much You Qualify For Now!www.ReverseMortgageAdviser.com
Coroplast Yard Signs100 18x24 1 color/2 sides with 100 Double "H" stakes - $225.00www.decals-oem.com
Advertise on NYTimes.com
MOST POPULAR
E-Mailed
Blogged
Searched
The 3 Facebook Settings Every User Should Check Now
Well: Play, Then Eat: Shift May Bring Gains at School
Vital Signs: Exercise: In Women, Training for a Sharper Mind
Bob Herbert: Obama’s Credibility Gap
David Brooks: The Populist Addiction
With Apple Tablet, Print Media Hope for a Payday
Colleges Market Easy, No-Fee Sell to Applicants
Sidebar: After 34 Years, a Plainspoken Justice Gets Louder
Wide Fallout in Failed Deal for Stuyvesant Town
Cases: An Ill Father, a Life-or-Death Decision Go to Complete List »
Obama Seeks Freeze on Many Domestic Programs
In Apple Tablet, Print Media Hope for a Payday
Obama's Credibility Gap
Tea Party Disputes Take Toll on Convention
Democrats Put Stop on Health Overhaul
The Populist Addiction
The Bernanke Conundrum
U.S. Envoy's Cables Show Concerns on Afghan War Plans
Stuyvesant Town Turned Over to Creditors
Three Bombs Strike at Baghdad Hotels Go to Complete List »
haiti
china
january 3, 2010
krugman
modern love
obama
health care
radiation
apple Go to Complete List »
new Accordian("mostPopWidget");
Franchitti's favorites
Also in Autos »
BMW 3 series latest to get new turbo engine
Buy a pre-owned BMW
Advertisements
Inside NYTimes.com
Art & Design »
Coffin’s Emblem Defies Certainty
N.Y. / Region »
Ripped Picasso Is Only One of Many Art Mishaps
U.S. »
Courts as Battlefields in Climate Fights
Opinion »
Editorial: The Taliban Would Applaud
President Sarkozy is foolishly inciting anti-Muslim prejudices as a way to deflect public anger over high unemployment.
Dining & Wine »
Replicating Restaurant Dishes at Home
Opinion »
Op-Ed: State of the Union, in Dutch
Theater »
Life, Death and Family in Foote’s Texas
Travel »
Gaming the Luggage System
Opinion »
Appreciations: A Responsible Man
Robert B. Semple Jr. on how Charles Mathias ignored party disciplinarians and demagogues and acted on principle alone.
Wednesday, October 28, 2009
Friedman -- A Must Read Today
(c) 2009 F. Bruce Abel
Thomas Friedman is so powerful today. This is worth saving for its history putting the middle east initiatives into perspective.
http://www.nytimes.com/2009/10/28/opinion/28friedman.html?_r=1&hp=&adxnnl=1&adxnnlx=1256727892-yH09MNehJaT55ipuuZ6ElQ
Thomas Friedman is so powerful today. This is worth saving for its history putting the middle east initiatives into perspective.
http://www.nytimes.com/2009/10/28/opinion/28friedman.html?_r=1&hp=&adxnnl=1&adxnnlx=1256727892-yH09MNehJaT55ipuuZ6ElQ
Wednesday, October 7, 2009
Friedman -- Music, Sex and Cookies NOT
(c) 2009 F. Bruce Abel
Three things to worry about. I agree with him on what they are, but his answers are a little unfocused and weak.
http://www.nytimes.com/2009/10/07/opinion/07friedman.html?_r=1&hp
Three things to worry about. I agree with him on what they are, but his answers are a little unfocused and weak.
http://www.nytimes.com/2009/10/07/opinion/07friedman.html?_r=1&hp
Wednesday, September 30, 2009
Friedman -- A Must Read Today
(c) 2009 F. Bruce Abel
Every once in a while Friedman writes a column which must be heeded. We all must read this and harken to what happened in Israel.
http://www.nytimes.com/2009/09/30/opinion/30friedman.html?_r=1
Every once in a while Friedman writes a column which must be heeded. We all must read this and harken to what happened in Israel.
http://www.nytimes.com/2009/09/30/opinion/30friedman.html?_r=1
Saturday, September 19, 2009
Aggregation of Electricity
© 2009 F. Bruce Abel
Re: Electricity Aggregation
“Aggrevation” of Electricity and Duke Energy’s Ghost Rider in the Sky
Trust me or trust your lying eyes? Trust your friendly local utility or some Wall Street slicer-and-dicer? The PUCO? Hostage to the slicers-and-dicers. Office of Consumers Counsel? Run by Enron’s Ohio lobbiest.
Aggregation of electricity is purely a game of trust. Duke Energy used to be local but now it is controlled in Charlotte, North Carolina.
Dominion Retail, Inc.? They are traders in electricity.
Aggregation is now on the table at two levels in the Duke Energy service territory. And this time – for the first time – the rates are competitive.
But think Verizon. “You get $50 off your new phone but we’ve got you for two years on the contract.”
Individual residential electric ratepayers are being direct-mail solicited by Dominion Retail, Inc. and some municipalities such as my Village of Glendale are voting in November to allow the village to act for its ratepayers in selecting a competitor for Duke.
Of course the individual cities and villages do not have the personnel with the particular expertise to figure out what’s going on. In getting lower rates, municipalities who get involved must listen to the experts. Who presents themselves? So far, only those middlemen who themselves will be paid by the competitors in order to be able to say to the village that the whole thing is “costless” to the village.
And it isn’t just a question of expertise today. Who will be the expert at the end of the competitive period of service, such as December, 2010? Same problem, same solution.
So get to know the middlemen as well as your meter-reader, or, better analogy, stock broker: Don Marshall, CEO of his company Eagle Energy in Green Township. Get to know Spence Faxon, President of Energy Alliances. And Mark Burns, President of Independent Energy Consultants Inc.
Or ignore them and stay with Duke.
Or read the following:
Dominion Retail, Inc. offers a three-month savings on the generation part of Duke’s electric bill, generation being roughly 2/3 of one’s electric bill. So if you use exactly 1000 kwh and your Duke cost is $.10 per kwh you save $66.67 x .20 or $13.34 per month, more or less. If you use a lot more kwh in the summer because of air conditioning and do not heat your house with electricity, your savings, other things being equal, will be much more than $13.34 per month as Duke has a penny higher rate per kwh for a residential above 1000 kwh per month in the summer. (It has a stunningly lower rate for above 1000 kwh in the winter months.)
So Dominion can give you the lower rate for three months. But face the fact that it only lasts for sure until you wake with your hangover New Year’s Day 2010, not December, 2010, as Dominion promises.
Why is this assured savings so short?
The answer to the question is that Duke Energy has “Rider FPP” (fuel and purchased power) as a component of its generation portion of its electric rates that is adjusted quarterly, and is as volatile as energy itself is volatile in today’s “traders’” dominated market, being currently 3.38 cents per kwh, and having been one cent in the not-too-distant past.
The smaller the quarterly Rider FPP of Duke, the more advantage to staying with Duke and the less savings there will be in switching to Dominion. If Rider FPP went negative, or even down to 1.38 cents per kwh, on January 1, 2010, April 1, 2010, July 1, 2010, or September 1, 2010, there would then be a loss by switching to Dominion Retail.
Is this likely? I have no way of knowing without having been in Duke’s PUCO filings the past few years, but since there haven’t been rate case filings for nigh-on twenty years, things are fuzzy.
The following is hope and theory rather than knowledge and depends on Duke’s reserve margins, power pool agreements, coal contracts, and other things one could know when there were regular rate cases -- Duke, under the current depressed economy, could come in with a much lower Rider FPP for the first quarter of 2010 and thereafter. (I called Duke September 14, 2009, and drilled down to some key employees involved; I remained in the dark; they either do not know or are not allowed to give out projections nor are they able to simply lower their rate to match competitors.)
By the way if you are a heavy user of electricity in the winter but not the summer, don’t even think of switching to Dominion.
Green Township
The same dynamics exist on the natural gas side of the coin. Natural gas switching from Duke in 2008 to a fixed term was in my view (Monday-morning quarterbacking) flat-out ridiculous. Green Township switched to a fixed rate from Integrys Energy in early 2008 and there was an initial savings, but as the year wore on Duke, which buys on the spot market and changes its natural gas rates monthly in the winter (the only season that counts for residentials) now has the lower rates.
Is a switch-over costless? Pretty much, but not exactly. A city or village administrator initially spends as much as 100 hours of his valuable time the first year of aggregation talking to citizen/inquirers/complainers who are opposed to government stepping into anything it does not need to. He does this even though the new competitor (Dominion or Integrys) happily carries out that function as well. But what ratepayer wants to talk to some stranger in New York who doesn’t even know where Colerain Avenue is or the name of the latest Bengal who batted a pass away to win, but lose, the game?
Bruce Abel
Re: Electricity Aggregation
“Aggrevation” of Electricity and Duke Energy’s Ghost Rider in the Sky
Trust me or trust your lying eyes? Trust your friendly local utility or some Wall Street slicer-and-dicer? The PUCO? Hostage to the slicers-and-dicers. Office of Consumers Counsel? Run by Enron’s Ohio lobbiest.
Aggregation of electricity is purely a game of trust. Duke Energy used to be local but now it is controlled in Charlotte, North Carolina.
Dominion Retail, Inc.? They are traders in electricity.
Aggregation is now on the table at two levels in the Duke Energy service territory. And this time – for the first time – the rates are competitive.
But think Verizon. “You get $50 off your new phone but we’ve got you for two years on the contract.”
Individual residential electric ratepayers are being direct-mail solicited by Dominion Retail, Inc. and some municipalities such as my Village of Glendale are voting in November to allow the village to act for its ratepayers in selecting a competitor for Duke.
Of course the individual cities and villages do not have the personnel with the particular expertise to figure out what’s going on. In getting lower rates, municipalities who get involved must listen to the experts. Who presents themselves? So far, only those middlemen who themselves will be paid by the competitors in order to be able to say to the village that the whole thing is “costless” to the village.
And it isn’t just a question of expertise today. Who will be the expert at the end of the competitive period of service, such as December, 2010? Same problem, same solution.
So get to know the middlemen as well as your meter-reader, or, better analogy, stock broker: Don Marshall, CEO of his company Eagle Energy in Green Township. Get to know Spence Faxon, President of Energy Alliances. And Mark Burns, President of Independent Energy Consultants Inc.
Or ignore them and stay with Duke.
Or read the following:
Dominion Retail, Inc. offers a three-month savings on the generation part of Duke’s electric bill, generation being roughly 2/3 of one’s electric bill. So if you use exactly 1000 kwh and your Duke cost is $.10 per kwh you save $66.67 x .20 or $13.34 per month, more or less. If you use a lot more kwh in the summer because of air conditioning and do not heat your house with electricity, your savings, other things being equal, will be much more than $13.34 per month as Duke has a penny higher rate per kwh for a residential above 1000 kwh per month in the summer. (It has a stunningly lower rate for above 1000 kwh in the winter months.)
So Dominion can give you the lower rate for three months. But face the fact that it only lasts for sure until you wake with your hangover New Year’s Day 2010, not December, 2010, as Dominion promises.
Why is this assured savings so short?
The answer to the question is that Duke Energy has “Rider FPP” (fuel and purchased power) as a component of its generation portion of its electric rates that is adjusted quarterly, and is as volatile as energy itself is volatile in today’s “traders’” dominated market, being currently 3.38 cents per kwh, and having been one cent in the not-too-distant past.
The smaller the quarterly Rider FPP of Duke, the more advantage to staying with Duke and the less savings there will be in switching to Dominion. If Rider FPP went negative, or even down to 1.38 cents per kwh, on January 1, 2010, April 1, 2010, July 1, 2010, or September 1, 2010, there would then be a loss by switching to Dominion Retail.
Is this likely? I have no way of knowing without having been in Duke’s PUCO filings the past few years, but since there haven’t been rate case filings for nigh-on twenty years, things are fuzzy.
The following is hope and theory rather than knowledge and depends on Duke’s reserve margins, power pool agreements, coal contracts, and other things one could know when there were regular rate cases -- Duke, under the current depressed economy, could come in with a much lower Rider FPP for the first quarter of 2010 and thereafter. (I called Duke September 14, 2009, and drilled down to some key employees involved; I remained in the dark; they either do not know or are not allowed to give out projections nor are they able to simply lower their rate to match competitors.)
By the way if you are a heavy user of electricity in the winter but not the summer, don’t even think of switching to Dominion.
Green Township
The same dynamics exist on the natural gas side of the coin. Natural gas switching from Duke in 2008 to a fixed term was in my view (Monday-morning quarterbacking) flat-out ridiculous. Green Township switched to a fixed rate from Integrys Energy in early 2008 and there was an initial savings, but as the year wore on Duke, which buys on the spot market and changes its natural gas rates monthly in the winter (the only season that counts for residentials) now has the lower rates.
Is a switch-over costless? Pretty much, but not exactly. A city or village administrator initially spends as much as 100 hours of his valuable time the first year of aggregation talking to citizen/inquirers/complainers who are opposed to government stepping into anything it does not need to. He does this even though the new competitor (Dominion or Integrys) happily carries out that function as well. But what ratepayer wants to talk to some stranger in New York who doesn’t even know where Colerain Avenue is or the name of the latest Bengal who batted a pass away to win, but lose, the game?
Bruce Abel
Thursday, September 17, 2009
Friedman -- Applied Materials
(c) 2009 F. Bruce Abel
Friedman's topics are so cosmic. And he is right. Read and reflext on solar.
http://www.nytimes.com/2009/09/16/opinion/16friedman.html?em
Friedman's topics are so cosmic. And he is right. Read and reflext on solar.
http://www.nytimes.com/2009/09/16/opinion/16friedman.html?em
Sunday, June 28, 2009
Wednesday, June 24, 2009
Friedman -- So Good it's Criminal
It's like watching Ken Griffey/Stan Musial bat. So effortless. So correct.
http://www.nytimes.com/2009/06/24/opinion/24friedman.html?_r=1
http://www.nytimes.com/2009/06/24/opinion/24friedman.html?_r=1
Sunday, June 21, 2009
Plain Vanilla Friedman on Iran
Plain vanilla, but necessary to read to get a historical context:
http://www.nytimes.com/2009/06/21/opinion/21friedman.html
http://www.nytimes.com/2009/06/21/opinion/21friedman.html
Sunday, June 7, 2009
Wednesday, April 15, 2009
Friedman -- A New Theme
The extreme difficulty of dealing with failed states such as Afghanistan:
http://www.nytimes.com/2009/04/15/opinion/15friedman.html
Sunday, April 12, 2009
Friedman -- Wonkish Today But Good
What Costa Rica can teach our corporations and us:
http://www.nytimes.com/2009/04/12/opinion/12friedman.html?_r=1
http://www.nytimes.com/2009/04/12/opinion/12friedman.html?_r=1
Sunday, April 5, 2009
Wednesday, April 1, 2009
I Know Something About This!
For all my topics, this one is spot-on for my interests. Coal-fired utilities and the costs to clean up the pollution.
In the following article today Friedman puts it all together. And, in this bold period when even GM is forced by Obama and his very good people to change, it is crystal-clear now that one must sell all one's coal-fired utility stocks. The costs of pollution-control is astronomical and the companies such as AEP will be forced to give up the good fight. Remember when Cincinnati Gas & Electric stock went to $9 over Zimmer. Well, we're about to see those times again:
http://www.nytimes.com/2009/04/01/opinion/01friedman.html?_r=1
In the following article today Friedman puts it all together. And, in this bold period when even GM is forced by Obama and his very good people to change, it is crystal-clear now that one must sell all one's coal-fired utility stocks. The costs of pollution-control is astronomical and the companies such as AEP will be forced to give up the good fight. Remember when Cincinnati Gas & Electric stock went to $9 over Zimmer. Well, we're about to see those times again:
http://www.nytimes.com/2009/04/01/opinion/01friedman.html?_r=1
Wednesday, March 25, 2009
Saturday, March 21, 2009
Rich and Friedman -- Obama's Katrina; Home Alone
Must read every word. But first listen to the interview with Larry Summers on CBS last Sunday, and the excellent comments of readers/viewers:
http://www.cbsnews.com/video/watch/?id=4866618n
And before reading Rich, take note of this hugely important blog of Simon Johnson, economist at MIT, who is hitting all the right notes:
http://baselinescenario.com/2009/03/21/ceo-semiotics-and-the-economics-of-vilification/#more-2951
Now Rich's Op Ed piece today:
http://www.nytimes.com/2009/03/22/opinion/22rich.html?_r=1
And the letter to the editor which keys off Rich's article:
Geithner Asking Libby to Re-negotiate Bonus Contracts: Geithner "Mr Libby, uh, please.." Libby "No" Geithner "Please" Libby "No, go away. And get me some more money." Geithner "Ok, sorry for bothering you. How much more money can we give you?"
Posted by themash at 10:32 PM : Mar 21, 2009
+ report abuse + permalink
Real non-sense, break their employment contract, fire them, allow them to reapply for the job with a modified contract. I can't believe a move like that would upset our contractual system or throw it off course as Summer's suggests,"contracts aren't abrogated"? It happens all the time.This can be made law easily. Can you think of how many of us would call or write their Congressperson if was submitted for consideration as law.Yes we can say where US Government $$ goes now happens every minute of every day, it's in the laws all the laws. Summer's seems pretty clueless Bob should have taken him to task.There are plenty of well qualified people for this type of work who did not get us into the mess. Boy could we have used Russert here !
Posted by ckiepper at 11:33 PM : Mar 15, 2009
+ report abuse + permalink
Are kidding me with this this guy Summers. I would let Larry Summers run the local hardware store in my town. And he has PHD? That must stand for Pizza Hut Diploma. The reason America is in this situation is because we put guys like this in charge of things. I am embarrassed for him to hear him spew this nonsence. What's willy nilly is that he is allowed to go on CBS news and spread this nonsense. Larry, why don't you stop brown nosing and tell the truth, fronting for these crooks. And Bob, get better guests.
Posted by someguyinamerica at 10:48 PM : Mar 15, 2009
+ report abuse + permalink
I AM SORRY. I BELEIVE SOMMERS IS WRONG. CONTRACTS SHOULD BE ABROGATED WHEN THEY become a risk to the sytem. Usually intent needs to be proven to show fraud. In this case, it shoud be a new IDEA. Marshall Law for systemic risk contracts...Not bonuses, bets (CDS) without collateral. Too many Trillions. SYSTEMIC REGULATOR. Sommers is not the right guy for it. All the credentials in the world are not enough. We need leadership with GUTS. Marshall Law for the 60 Trillion Global CDS market. COME ON MR President, rise to the occasion. End the deadlock. Time for RULES!!!
Posted by at 9:51 PM : Mar 15, 2009
+ report abuse + permalink
Gee, I wonder why AIG got bailout money in the first place.... Could it be that they hold the insurance on the Congressional pension plan????....While our 401K's and pensions are taking a beating our greedy politicians again thought of themselves first...When hell are we gonna get some intestinal fortitude and have another "Tea Party"....
Posted by WOLFMAN0802 at 6:39 PM : Mar 15, 2009
+ report abuse + permalink
If I was congress I would put a hold on these bonuses what kind of message does this send to America and worldwide when AIG is making a joke out of Obama and congress everybody as already seen the first 140 billion go in 3 or 4 months This is not AIG money this is americas money in everybodys mine this is not there profit so they have no right to give bonuses out of our money especially ridicolous bonuses banks pretty much make there own rules without regulation with there money so if this is americas money why is congress not making regulations congress is should be the law not banks who ask for another 30 billion after a short period of time it would be long before the world loses faith in our government and starts to pull there money out of the america when there people start demanding them to when AIG makes a joke out of every american
Posted by noskoman at 6:37 PM : Mar 15, 2009
+ report abuse + permalink
This crisis will start to get resolved when we understand who caused it and take steps to get them out of the picture. I am referring to Rep. Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut. Through their positions in Congress, they compelled banks to make risky loans and to this day haven't suspended the rules that banks operate under which got us into this mess. They should recuse themselves from any investigation about the financial crisis and not take part in any new legislation until their culpability has been resolved. Then we can move the country forward.
Posted by olevis55 at 6:33 PM : Mar 15, 2009
+ report abuse + permalink
I just transferred from a Lifecycle fund which wasn't aggressive enough for me due to losing $40,000 and in my 40s in a 403b plan and now I'm wondering after hearing Mr. Summers, a male chauvinist pig, formerly from Harvard who left due to his views on women and science with degrees which I hold *** laude a B.S. I wonder if I made the right decision. No, Mr. Summers, we in Boston haven't forgotten your views. It's great for Mr. Bernanke to cheerlead for us since I, for one, called my rep who voted against this crazy bank bailout Mr. Stephen Lynch, but it was cancelled out by Mr. Barney Frank. As Mr. Bernake is cheerleading we hear that AIG is giving big bonuses to the tune of hundred's of millions. I work in the state of RI with the second highest unemployment rate, and I find this terribly repulsive. Everyone just about tarred and feathered Mr. Madoff but as far as I'm concerned that's exactly what our bank's are doing. I have chosen not to bank with Bank of America due to the Merril Lynch bonuses. If the banks continue on this destructive path pretty soon none of us will trust them with their money. So far the only CEO of merit I have heard as of late is the President of Citizens of RI who is going to concentrate on customer service and deposits which lately seems to be lacking in all banks.
Posted by Gadgetgirl84 at 6:18 PM : Mar 15, 2009
+ report abuse + permalink
It's the Chinese. The Chinese own a lot of AIG's worthless paper and want the U.S. Government to pay them. If we don't pay them, the will take their money out of our country (over a Trillion dollars in treasury's). We're a debtor nation and will have to kiss some a#% from time to time. This is one of those times.
Posted by Blitzer2 at 5:30 PM : Mar 15, 2009
+ report abuse + permalink
I am beside myself on this one. In addition the shear stupidity of this, someone forgot to prep Director Summers about how to speak when doing a media interview. He sounded like a bumbling idiot. Apparently they don't have a Public Relations person prepping him and giving him Media Training. I couldn't believe Dir. Summer when he said "It's outrageous but there is nothing we can do about it." You have GOT to be kidding me... You're the freakin Federal Government, for goodness sakes! Do something - anything - - besides throwing up your hands...
Posted by Scubajoy at 4:46 PM : Mar 15, 2009
+ report abuse + permalink
http://www.cbsnews.com/video/watch/?id=4866618n
And before reading Rich, take note of this hugely important blog of Simon Johnson, economist at MIT, who is hitting all the right notes:
http://baselinescenario.com/2009/03/21/ceo-semiotics-and-the-economics-of-vilification/#more-2951
Now Rich's Op Ed piece today:
http://www.nytimes.com/2009/03/22/opinion/22rich.html?_r=1
And the letter to the editor which keys off Rich's article:
To the Editor:
President Obama may not realize it yet, but his Katrina moment has arrived.
This is a defining moment for his presidency, and how he responds will determine the trajectory of his term. He needs to deal with the excesses within the financial industry with the same toughness and conviction that President Ronald Reagan brought to bear during the air traffic controllers’ strike. To date, he is sorely wanting.
We are not interested in the level of outrage the administration is feeling, but in the effectiveness of its response. So far, it has come across as hapless and completely ineffectual. This Obama voter would like to be spared the speeches and the posturing on the Sunday morning shows — action is what is needed.
Paulette Altmaier, Cupertino, Calif., March 17, 2009
President Obama may not realize it yet, but his Katrina moment has arrived.
This is a defining moment for his presidency, and how he responds will determine the trajectory of his term. He needs to deal with the excesses within the financial industry with the same toughness and conviction that President Ronald Reagan brought to bear during the air traffic controllers’ strike. To date, he is sorely wanting.
We are not interested in the level of outrage the administration is feeling, but in the effectiveness of its response. So far, it has come across as hapless and completely ineffectual. This Obama voter would like to be spared the speeches and the posturing on the Sunday morning shows — action is what is needed.
Paulette Altmaier, Cupertino, Calif., March 17, 2009
And Rich's article six weeks ago, which I did not post, on Tom Daschle's situation which so enraged the American people and forever tarnished Daschle's reputation:
and the excellent comments thereon from other readers/viewers:
Geithner Asking Libby to Re-negotiate Bonus Contracts: Geithner "Mr Libby, uh, please.." Libby "No" Geithner "Please" Libby "No, go away. And get me some more money." Geithner "Ok, sorry for bothering you. How much more money can we give you?"
Posted by themash at 10:32 PM : Mar 21, 2009
+ report abuse + permalink
Real non-sense, break their employment contract, fire them, allow them to reapply for the job with a modified contract. I can't believe a move like that would upset our contractual system or throw it off course as Summer's suggests,"contracts aren't abrogated"? It happens all the time.This can be made law easily. Can you think of how many of us would call or write their Congressperson if was submitted for consideration as law.Yes we can say where US Government $$ goes now happens every minute of every day, it's in the laws all the laws. Summer's seems pretty clueless Bob should have taken him to task.There are plenty of well qualified people for this type of work who did not get us into the mess. Boy could we have used Russert here !
Posted by ckiepper at 11:33 PM : Mar 15, 2009
+ report abuse + permalink
Are kidding me with this this guy Summers. I would let Larry Summers run the local hardware store in my town. And he has PHD? That must stand for Pizza Hut Diploma. The reason America is in this situation is because we put guys like this in charge of things. I am embarrassed for him to hear him spew this nonsence. What's willy nilly is that he is allowed to go on CBS news and spread this nonsense. Larry, why don't you stop brown nosing and tell the truth, fronting for these crooks. And Bob, get better guests.
Posted by someguyinamerica at 10:48 PM : Mar 15, 2009
+ report abuse + permalink
I AM SORRY. I BELEIVE SOMMERS IS WRONG. CONTRACTS SHOULD BE ABROGATED WHEN THEY become a risk to the sytem. Usually intent needs to be proven to show fraud. In this case, it shoud be a new IDEA. Marshall Law for systemic risk contracts...Not bonuses, bets (CDS) without collateral. Too many Trillions. SYSTEMIC REGULATOR. Sommers is not the right guy for it. All the credentials in the world are not enough. We need leadership with GUTS. Marshall Law for the 60 Trillion Global CDS market. COME ON MR President, rise to the occasion. End the deadlock. Time for RULES!!!
Posted by at 9:51 PM : Mar 15, 2009
+ report abuse + permalink
Gee, I wonder why AIG got bailout money in the first place.... Could it be that they hold the insurance on the Congressional pension plan????....While our 401K's and pensions are taking a beating our greedy politicians again thought of themselves first...When hell are we gonna get some intestinal fortitude and have another "Tea Party"....
Posted by WOLFMAN0802 at 6:39 PM : Mar 15, 2009
+ report abuse + permalink
If I was congress I would put a hold on these bonuses what kind of message does this send to America and worldwide when AIG is making a joke out of Obama and congress everybody as already seen the first 140 billion go in 3 or 4 months This is not AIG money this is americas money in everybodys mine this is not there profit so they have no right to give bonuses out of our money especially ridicolous bonuses banks pretty much make there own rules without regulation with there money so if this is americas money why is congress not making regulations congress is should be the law not banks who ask for another 30 billion after a short period of time it would be long before the world loses faith in our government and starts to pull there money out of the america when there people start demanding them to when AIG makes a joke out of every american
Posted by noskoman at 6:37 PM : Mar 15, 2009
+ report abuse + permalink
This crisis will start to get resolved when we understand who caused it and take steps to get them out of the picture. I am referring to Rep. Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut. Through their positions in Congress, they compelled banks to make risky loans and to this day haven't suspended the rules that banks operate under which got us into this mess. They should recuse themselves from any investigation about the financial crisis and not take part in any new legislation until their culpability has been resolved. Then we can move the country forward.
Posted by olevis55 at 6:33 PM : Mar 15, 2009
+ report abuse + permalink
I just transferred from a Lifecycle fund which wasn't aggressive enough for me due to losing $40,000 and in my 40s in a 403b plan and now I'm wondering after hearing Mr. Summers, a male chauvinist pig, formerly from Harvard who left due to his views on women and science with degrees which I hold *** laude a B.S. I wonder if I made the right decision. No, Mr. Summers, we in Boston haven't forgotten your views. It's great for Mr. Bernanke to cheerlead for us since I, for one, called my rep who voted against this crazy bank bailout Mr. Stephen Lynch, but it was cancelled out by Mr. Barney Frank. As Mr. Bernake is cheerleading we hear that AIG is giving big bonuses to the tune of hundred's of millions. I work in the state of RI with the second highest unemployment rate, and I find this terribly repulsive. Everyone just about tarred and feathered Mr. Madoff but as far as I'm concerned that's exactly what our bank's are doing. I have chosen not to bank with Bank of America due to the Merril Lynch bonuses. If the banks continue on this destructive path pretty soon none of us will trust them with their money. So far the only CEO of merit I have heard as of late is the President of Citizens of RI who is going to concentrate on customer service and deposits which lately seems to be lacking in all banks.
Posted by Gadgetgirl84 at 6:18 PM : Mar 15, 2009
+ report abuse + permalink
It's the Chinese. The Chinese own a lot of AIG's worthless paper and want the U.S. Government to pay them. If we don't pay them, the will take their money out of our country (over a Trillion dollars in treasury's). We're a debtor nation and will have to kiss some a#% from time to time. This is one of those times.
Posted by Blitzer2 at 5:30 PM : Mar 15, 2009
+ report abuse + permalink
I am beside myself on this one. In addition the shear stupidity of this, someone forgot to prep Director Summers about how to speak when doing a media interview. He sounded like a bumbling idiot. Apparently they don't have a Public Relations person prepping him and giving him Media Training. I couldn't believe Dir. Summer when he said "It's outrageous but there is nothing we can do about it." You have GOT to be kidding me... You're the freakin Federal Government, for goodness sakes! Do something - anything - - besides throwing up your hands...
Posted by Scubajoy at 4:46 PM : Mar 15, 2009
+ report abuse + permalink
Subscribe to:
Posts (Atom)