White House Chronicle

News Analysis With a Sense of Humor

The Efficient, Stupid Market for Nuclear Electricity

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By Llewellyn King

The market is a wondrous place. It ensures you can drink Scotch whisky in Cape Town and Moscow, or Washington and Tokyo, if you prefer. It distributes goods and services superbly, and it cannot be improved upon in seeking efficiency.

But it can’t think and it can’t plan; and it’s a cruel exterminator of the weak, the unready or, for that matter, the future.

Yet there are those who believe that the market has wisdom as well as efficiency. Not so.

If it were wise, or forward-looking, or sensitive, Mozart wouldn’t have died a pauper, and one of the greatest — if not the greatest architecturally — railway station ever built, Penn Station, wouldn’t have been demolished in 1963 to make way for the profit that could be squeezed out of the architectural deformity that replaced it: the Madison Square Garden/Penn Station horror in New York City.

End of the line

End of the line

Around Washington, Los Angeles and other cities are the traces of the tracks of the railroads and streetcar lines of yore. These were torn up when the market anointed the automobile as the uber-urban transport of the future. As Washington and Los Angeles drown in traffic, many wish the tracks — now mostly bike paths — were still there to carry the commuter trains and streetcars that are so badly needed in the most traffic-clogged cities.

Now the market, with its concentration on the present tense, is about to do another great mischief to the future. An abundance of natural gas is sending the market signals which threaten carbon-free nuclear plants before their life is run out, and before a time when nuclear electricity will again be cheaper than gas-generated electricity. World commodity prices are depressed at present, and no one believes that gas will always be the bargain it is today.

Two nuclear plants, Vermont Yankee in Vernon, Vt. and Kewaunee in Carlton, Wisc., have already been shuttered, and three plants on the Exelon Corp. system in the Midwest are in jeopardy. They’ve won a temporary reprieve because the Federal Energy Regulatory Commission (FERC) says the fact that they have round-the-clock reliability has to be taken into account against wind and solar, which don’t. In a twist, solar and wind have saved some nuclear for the while.

Natural gas, the market distorting fuel of the moment, is a greenhouse gas producer, although less so than coal. However gas, in the final analysis, could be as bad, or worse, than coal when you take into account the habitual losses of the stuff during extraction. Natural gas is almost pure methane. When this gets into the atmosphere, it’s a serious climate pollutant, maybe more so than carbon dioxide, which results when it is burned.

Taken together — methane leaks with the carbon dioxide emissions — and natural gas looks less and less friendly to the environment.

Whatever is said about nuclear, it’s the “Big Green” when it comes to the air. Unlike solar and wind, it’s available 24 hours a day, which is why three Midwest plants got their temporary reprieve by the FERC in August.

When President Obama goes to Paris to plead with the world for action on climate change in December, the market will be undercutting him at home, as more and more electricity is being generated by natural gas for no better reason than it’s cheap.

As with buying clothes or building with lumber, the cost of cheap is very high. The market says, “gas, gas, gas” because it’s cheap – now. The market isn’t responsible for the price tomorrow, or for the non-economic costs like climate change. 

But if you want a lot of electricity that disturbs very little of the world’s surface, and doesn’t put any carbon or methane into the air, the answer is nuclear: big, green nuclear. — For InsideSources.com

In Search of the Real Elizabeth Warren

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By Llewellyn King

I went to Boston this week in pursuit of the real Elizabeth Warren. You see, I don’t think the whole story of Warren comes across on television where she can seem overstated, too passionate about everyday things to be taken seriously.

Like others, I’ve wondered why the progressives are so enamored of her. Suffolk University, mostly known for its authoritative polls, gave her platform as part of an ongoing series of public events in conjunction with The Boston Globe. But whether the dearest hopes of the progressives will be fulfilled, or whether the senior senator from Massachusetts has reached her political apogee is unclear.

What I did find is that Warren has star power. She is a natural at the podium, and revels in it. At least she did at Suffolk, where the cognoscenti came out to roar their affirmation every time she threw them some red meat, which she did often.

Here’s a sampling:

On student loans: “The U.S. government is charging too much interest on student loans. It shouldn’t be making money on the backs of students.”

On the U.S. Senate: “It was rigged and is rigged [by lobbyists and money in politics]. The wind only blows in one direction in Washington … to make sure that the rich have power and remain in power.”

Warren’s questioner, Globe political reporter Joshua Miller, led her through the predictable obstacle course of whether she was angling to be the vice presidential candidate, if Joe Biden runs and becomes the Democratic nominee. She waffled on this question, as one expected, admitting to long talks about policy with Biden and declaring herself prepared to talk policy with anyone. She said the subject of the vice presidency might have come up.

Short answer, in my interpretation: She would join the ticket in a heartbeat. This isn’t only for reasons of ambition — of which she has demonstrated plenty, from her odyssey through law schools, until she found a perch at Harvard as a full professor — but also age.

Warren is 66 years old and although her demeanor and appearance are of a much younger woman, the math is awkward. There are those in the Democratic Party who say she needs a full term in the Senate to get some legislative experience and to fulfill the commitment of her first elected office. But eight years from now, she’ll probably be judged as too old to run for president.

Clearly Warren didn’t fancy the punishment, and probable futility, of a run against Hillary Clinton. But the vice presidency might suit her extraordinarily well, given Biden’s age of 72.

Warren has stage presence; she fills a room. She is funny, notwithstanding that you can be too witty in national politics, as with failed presidential aspirants Mo Udall and Bob Dole. She reminds me of those relentlessly upbeat mothers, who were always on-call to fix things in the children’s books of my youth.

Although Warren comes from a working-class background, years of success at the best schools has left her with the patina of someone from the comfortable classes; someone for whom things work out in life. She counters this by stressing the plight of the middle class, the decline in real wages and her won passion for fast food and beer — light beer, of course.

Warren’s father was janitor in Oklahoma who suffered from heart disease and her mother worked for the Sears catalog. The young Elizabeth did her bit for the family income by waitressing.

However, it’s hard to imagine her at home at a union fish fry. My feeling is  that she’d be more comfortable — the life of the party, in fact — at a yacht club.

Progressives yearn for Warren and she speaks to their issues: the lack of Wall Street regulation and federal medical research dollars, and the need for gun control, student loan reform, equal pay for equal work, and government contracting reform.

Less dour than Bernie Sanders, and less extreme, it’s no wonder they long for her to occupy high office; she’s a classic, untrammeled liberal.

All in all, I’d like to go to a party where Warren is the host: the kind where they serve more than light beer.  — For InsideSources.com.

The Stripping of Man: Hats, Ties, now Socks

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By Llewellyn King

Men’s hats bit the dust in the time of Jack Kennedy. Oh, sure, there are baseball caps and various ersatz chapeaux to keep the top of a man cool or warm. But they aren’t grand symbols of taste on the head: boaters, derbies, fedoras, homburgs, panamas, trilbies and — forgotten glory — silk top hats.

More recently, the bell has tolled for the necktie — that useless but delightful fashion option for men. Who ever complimented a man on his unadorned neck?

I blame Hollywood and the whole state of California for suppressing fashion by promoting the idea that casual dressing is superior. The Golden State has upended the decent order of all things sartorial for men; reduced us to looking like bums in shapeless clothes emblazoned with the manufacturer’s name.

What became of the well-fitting — bespoke, if possible — suit or blazer, craftily cut to minimize bulge around the waist and maximize size at the shoulder? What of the fine shirt in linen, poplin, French twill, silk or even broadcloth? What has replaced the sense of social perfection of a man showing his cuffs in a double-breasted Melton blazer?

Teach us to dress: Albert J. Beveridge, literature and drama teacher, 1912

Teach us to dress: Albert J. Beveridge, literature and drama teacher, 1912

This decline in the male wardrobe I’ve borne with fortitude. But I believe that wardrobe disassembling has hit its nadir: men wearing suits without socks. Enough, enough, enough!

A senior executive of a California company, of course, showed up sans socks for a taping of my television program. I’ll give the man his due: he wore a decent suit, a passable shirt and a power tie. His feet supported quality loafers. But why no socks? Does anyone admire the male ankle? Is it a thing of beauty? Have I missed out on the charm of this lovely body part?

That horror wasn’t an isolated event: Recently, I dined at a French restaurant in Boston with a distinguished citizen — an ambassador plenipotentiary to a European country, no less — who wasn’t wearing socks. Does the State Department know? Is there a protocol for ambassadorial dress? Can down-dressers be rebuked? Is this matter addressed in Hillary Clinton’s copious emails? We should be told in the president’s Saturday broadcast whether the nation is going to be allowed to go down the sartorial drain.

I’ve been checking out Chinese dignitaries. Every last one of them, as far as I can determine, wears socks. Even Russian President Vladimir Putin transgresses international standards of statesmanship only from the waist up. Shoes and socks prevail for this improbable Tarzan.

The passion to be casual is causing actual hardship. Nobody knows what to wear at important events. Some years ago, I participated in a U.S.-Japan business forum in Hawaii. The U.S. delegation head decided that polo shirts would be appropriate attire for men. But his dress decision didn’t reach the Japanese delegates, and they all wore suits. After lunch, though, the Japanese went casual and the Americans donned suits. Mutual red faces.

Does anyone really think a partner or associate in a big law firm feels good with his tummy rolls accentuated by a knit shirt advertising a crocodile? For women, this casual thing is a refined cruelty. You work like hell: law school, junior legal slave, and finally — hosanna — partner. Time for a fabulous Chanel suit, patent leather-toed slingbacks and heaps of pearls.

Not so fast. The managers have decreed it’s time to go casual, to bring out the jeans. The law-school look for work.

We have to make America look as if it cares again. Therefore, I won’t vote for any presidential aspirant who, if male, doesn’t wear a tie or plunges his feet into loafers without socks; or who, if female, wears flats and eschews leg and foot coverage. I’m saving my vote for a sartorially principled candidate. — For InsideSources.com

The Rare Promise of Thorium Reactors

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By Llewellyn King

If you want to design a new automobile, there are choices, but there are also parameters. For example, you would be advised to start with four wheels on the ground. You could design it with three, but the trade-offs are considerable.

When it comes to designing a new nuclear reactor for generating electricity, there are no such absolutes. A nuclear reactor only needs a safe nuclear reaction and the ability to harness the resulting heat. That means that nuclear reactors can be configured in all kinds of ways with considerable variety in the design of the fuel, the size of the reactor, the cooling system and the moderator (usually water).

Not only can the configuration of the fuel vary with differing results, but the fuel also can vary. It can be, for example, the intriguing metal thorium, which is plentiful in nature. It is fertile but not fissile, which means it takes uranium or plutonium to get a nuclear reaction going. When that happens, a thorium reactor appears to have advantages, from the availability of the fuel to the safety of the reactor.

Yet most of the world’s commercial civilian reactors – more than 400 — have just one basic design: uranium-fueled light water. The moderator is water.

Adm. Hyman G. Rickover, the father of the nuclear Navy, favored this technology. Recognizing that left to their own devices, nuclear engineers would come up with dozens of reactors, and would stymie the effort get industry off the ground, Rickover pushed light water. The admiral was a man who got what he wanted. So the light water reactor (LWR) became the world standard with some national exceptions.

Canada developed a very successful reactor that uses natural uranium, but requires heavy water: water with an extra hydrogen atom. Britain built two different reactor designs, the Magnox and the Advanced Gas Reactor, but finally has come around to the light water reactor. The Soviet Union went ahead with its own designs, including the disastrous Chernobyl design.

Although LWR construction steams ahead in China, and more hesitatingly elsewhere, there is a sense that it is time for change. Time to look at other designs and fuels.

In the United States, the Department of Energy has stimulated interest in a new generation of small modular reactorsand some ideas, which got pushed aside by light water technology, are doggedly holding on and even fighting back. Among these are various gas reactor concepts and fast reactors, where the neutron flux is not slowed down and which can do amazing things, including burning a certain proportion of nuclear waste.

The molten salt thorium reactor continues to have its advocates, although this technology is not included in DOE’s small modular reactor program. It is not a new idea, but it is one that has been given short shrift from the nuclear establishment in recent years. Promising work on it was done at the Oak Ridge National Laboratory in Tennessee in the 1960s, under the legendary scientist and laboratory director Alvin Weinberg. He died in 2006, and I was lucky to have known him. 

Proposed thorium molten salt research reactor. Source: Thorium Energy Alliance

Proposed thorium molten salt research reactor. Source: Thorium Energy Alliance

When I attended the Thorium Energy Alliance annual conference, held in Palo Alto, Calif., this year, I felt I had stumbled into an old-fashioned revival meeting. They are believers. Work on thorium-fueled reactors is ongoing in China, India and Russia.

But the best hope for thorium future may not lie in the nuclear sphere at all. It may rest with rare earths, and the global appetite for these in a high-tech world. A simple way to understand rare earths is that in technology they are great multipliers, making products in consumer electronics, computers and networks, communications, electricity generation, health care, advanced transportation, and across a wide range of defense materiel, more effective. With a small application, say to the turbine in a wind generator, the efficiency may increase several times.

Rare earths — which are not really rare at all — are found in conjunction with thorium, often in phosphate mining. When the world gets serious about the rare earths supply, it has to get serious about thorium, especially in the United States.The Thorium Energy Alliance would like to see thorium put into a national stockpile, so that it is available when the pendulum in reactor design swings to thorium, and that becomes the future. 

Can the 17 rare earth elements become the thorium reactor’s enabler? Some devoutly believe so. — For the InsideSources news service.

 

U.S. Loves Engineers, Treats Them Badly

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We need more engineers. Go forth and study engineering for the future of the nation. Math and engineering are the keys to maintaining our place in the world and keeping the Chinese, and a few others, at bay.

That is the urging of our political class, whether they are appointed public officials or elected politicians; or whether they are members of the thinking and writing class. Taken collectively, they might be called “the exhortationists.”

But there is a problem: We do not treat engineers very nicely — at least not those who are federal employees or contractors. The very politicians who lead in exhorting our young to become engineers are those who treat engineers as disposable workers.

The government starts many projects and finishes few. A change of administration, a shortage of money, or some other excuse and the government shelves the project.

The impact on engineers is devastating. They have often relocated their families to the site of the project and — wham! — it is canceled.

It is not only that this rough treatment has a huge impact on families – and engineers are not that well-paid (median income is $80,000, and petroleum engineers are the highest-paid) – but also the psychological damage is considerable.

Engineering a new project is exciting but also demanding. Men and women throw themselves into what is a giant creative undertaking, eating up years of lives, demanding the most extreme effort. It is shattering when there is a sudden political decision to cancel a project.

To look at a bridge or a locomotive and say, “I built that,” “I made a difference,” is much of the engineer’s reward. Marc Goldsmith, a fourth-generation engineer, who has worked on 16 projects in nuclear power which have been canceled, says that many engineers get so frustrated they leave the profession and go into law or finance, and never face a logarithm again. He says the government treats highly educated engineers like day laborers: expendable.

Goldsmith, a former president of the American Society of Mechanical Engineers, says the heartbreak of a canceled project to the engineers is terrible and destructive of the can-do engineering culture.

The hundreds of engineers involved in a big engineering project do not do their job just for the money, but for the satisfaction that they solved a problem and made a thing that worked, whether it was a mega-passenger aircraft, a spindly skyscraper or a flood-control gate.

We now live in a world of project ghosts, where public policy (politics) has said “go,” and has said later, with the same passion, “abandon.”

Clarence L. “Kelly” Johnson, the genius founder of the Lockheed secret division of engineers, dubbed Skunk Works, in Burbank, Calif., told me before he died in 1990 that some of the starts-and-stops and abrupt cancellations of military projects made him sick. The Skunk Works, which brought us such legends as the U-2 and the SR-71, to name a few, was also instructed by the government to eradicate any trace of other projects that were far along. “Not only were they canceled, but they had to be expunged,” he told me.

Nuclear has been especially hard hit by government policy perfidy. In today’s shame roster, Yucca Mountain, the nuclear waste repository and the pride of thousands of engineers, was abandoned by the incoming Obama administration in a deal with Harry Reid, the Democratic senator from Nevada and Senate majority leader. Good-bye to $15 billion in taxpayer money; good-bye to a nuclear waste option; and goodbye to all that intricate engineering inside a mountain.

Now the administration is taking its policy sledgehammer to another engineering project: one it supported until it didn’t support it anymore. It is trying to end the program to build a plant to blend surplus weapons-grade plutonium with uranium and burn it up in reactors as uranium oxide, or MOX, as it is known.

The contractor – a consortium of Chicago Bridge & Iron Company and Areva, the French firm – says the plant is 67-percent complete and employs 300 engineers, out of a total workforce of some 1,800, at the Department of Energy site near Aiken, S.C. Now this big engineering project, which is another way of dealing with nuclear waste, is in the government’s sights. — For the InsideSources news service

Obama’s Second Blow to a Nuclear Waste Solution

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When the Obama administration came into power, one of its first actions was to end work on the Yucca Mountain nuclear waste repository in Nevada. In so doing, it delivered a shuddering blow to the U.S. nuclear industry, trashing the project when it was nearly ready to open. The cost to taxpayers was about $15 billion.

Now the administration is going through the motions to suspend another costly nuclear waste investment when it is about 67 percent complete. Money expended: $4.5 billion. Shutdown cost: $1 billion.

The object of its latest volte face is the Mixed Oxide Fuel Fabrication Facility (MFFF) on the Department of Energy’s Savannah River site in South Carolina. Work started on the facility in 2007, with a 2016 startup envisaged.

But unlike Yucca Mountain, few people outside of the nuclear industry know about the genesis and purpose of the MFFF project.

The project was initiated as a result of a 2000 agreement with the Russians, later amended, in which both countries agreed to dispose of no less than 34 metric tons of excess weapons-grade plutonium — the transuranic element that is the key component of a modern nuclear weapon, and remains radioactive essentially forever.

The DOE’s plan was for the facility to mix the plutonium with uranium to create a fuel for civil nuclear reactors to produce electricity. This recycling technology, developed in the United States originally, has been used in France since 1995.

The DOE has not yet taken a wrecking ball to the MFFF, but it is taking the first steps toward demolition. On June 25, the DOE issued a press release that the industry read as a precursor to a death warrant. The department announced that it was creating a “Red Team,” headed by Thom Mason, director of the Oak Ridge National Laboratory in Oak Ridge, Tenn., to review “plutonium disposition options and make recommendations.”

The DOE statement said the team would “assess the MOX [mixed oxide] fuel approach, the downblending and disposal approach, and any other approaches the team deems feasible and cost effective.”

Industry sources say the choice is between the MOX approach and so-called downblending. In that application, the plutonium is not burned up but is spiked and mixed with a modifier that makes it unusable in weapons. Then it would be disposed either in the Waste Isolation Pilot Plant in Carlsbad, N.M., or in a new repository, if one is commissioned.

The American Association for the Advancement of Science has been pushing the downblending option. But it is using numbers that many believe to be extremely speculative. They come from a private consulting firm hired by the DOE, Aerospace Corporation.

The first number is that the life-cycle cost of the MFFF would be $30 billion, while the life-cycle cost for downblending would be only $9 billion. These numbers are contested by the contractor building the facility, a joint venture between the construction firm Chicago Bridge & Iron Company and the French nuclear technology giant Areva. They point out that plutonium has never been downblended and that the WIPP in New Mexico has had its own problems. On Feb. 5, 2014, the plant closed after a salt truck caught fire; there was an unrelated radiological release nine days later. The plant is still closed.

It is believed that Secretary of Energy Ernest Moniz favors the MFFF approach as a permanent and scientifically attractive solution, rather than burying the plutonium in New Mexico or elsewhere. However, he may be overruled by the White House and the military chiefs, who know that they are going to have to raise money on a huge scale for nuclear weapons modernization, in light of the deteriorated relationship with Russia and China’s continuing military buildup.

If the MFFF is canceled, it will join a long list of nuclear projects that the government has ordered up and canceled later, often with a huge waste of public money. Another negative is the wastage of engineering talent. Families move to sites, buy houses and send their children to local schools. Then come the pink slips and years of demanding engineering effort are nixed by policy, politics and general incoherence in Washington.

Wind of Change Challenging Utilities

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On Feb. 3, 1960 in Cape Town, British Prime Minister Harold Macmillan shook up what was still the British Empire in Africa by telling the Parliament of South Africa that “the wind of change is blowing through this continent.”

His remarks weren’t well received by those who that thought it was premature, and that Britain would rule much of Africa for generations. The British ruling class in Africa – the established order — was shaken.

But Macmillan’s speech was, in fact, a tacit recognition of the inevitable. It was the signaling of a brave new world in which Britain would grant independence to countries from Nigeria to Botswana and Kenya to Malawi. Britain would not attempt to hold the Empire together. His speech was seminal, in that Britain had signaled that things would never ever be the same.

To me, the appearance of investor and entrepreneur Elon Musk at the Edison Electric Institute’s annual convention in New Orleans was a “wind of change” moment for the august electric utility. It was a signal that the industry was coming to terms, or trying to come to terms, with new forces that are challenging it as a business proposition in a way that it hasn’t been challenged in a history of more than 100 years.

But whereas Britain could swallow its pride and start a withdrawal from its former possessions, the electric industry faces quite a different challenge: How can it serve its customers and honor its compact with them when people like Musk, who is the non-executive chairman of the aggressive company SolarCity, and a passionate advocate of solar electricity, and Google are moving into the electric space?

At EEI’s annual convention, Musk didn’t tell his audience what he thought would happen to the utilities as their best customers opted to leave the grid, or to rely on it only in emergencies, while insisting that they should be allowed to sell their own excess generation back to the grid. Musk also didn’t venture an opinion on the future of the grid — and his interlocutor, Ted Craver, chairman and CEO of Rosemead, Calif.-based Edison International, didn’t press him.

Instead Musk talked glowingly about the electrification of transportation, implying — but not saying outright — that the electric pie would grow with new technologies like his Tesla Motors’ electric car.

The CEOs of EEI’s board were ready for the press by the time they held a briefing a day after Musk’s opening appearance. They spoke of “meeting the challenges as we have always met the challenges” and of “evolving” with the new realities. Gone from recent EEI annual meetings was CEO talk of their business model being “broken.”

The great dark cloud hanging over the industry is that of social justice. As the move to renewables becomes a flood, enthusiastically endorsed by such disparate groups as the Tea Party and environmentalists, the Christian right and morally superior homeowners, and companies like SolarCity and First Solar, the poor may have difficulty keeping their heads above water.

The grid, the lifeline of U.S. social cohesion, remains at threat. Utilities are jumping into the solar business, but they have yet to reveal how selling or leasing rooftop units — as the Southern Company is about to do in Georgia — is going to save the grid, or how the poor and city dwellers are going to be saved from having to pay more and more for the grid while suburban fat cats enjoy their sense that they’re saving the planet.

My sense is that in 10 years, things will look worse than they do today; that an ill wind of change will have reduced some utilities to the pitiful state of Amtrak — a transportation necessity that has gobbled up public money but hasn’t restored the glory days of rail travel.

People like myself — I live in an apartment building — have reason to fear the coming solar electric world, for we will be left out in the cold. The sun will not be shining on those of us who still need the grid. It needs to be defended. — This column was previously published in Public Utilities Fortnightly.

Washington Can’t Save the Utilities from the Solar Onslaught

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Time was when New York dominated the collective and individual efforts of the electric utility industry. When the Edison Electric Institute (EEI) was founded in 1933, there was no question but that it would be located in New York. Likewise the Atomic Industrial Forum, which has morphed into the Nuclear Energy Institute, was founded there in 1952.

At least one large utility, American Electric Power, had its headquarters on Wall Street. In the early 1970s, I would travel from Washington to New York to interview AEP’s legendary chairman, Donald C. Cook. He believed in coal, and as the one-and-only fuel for electric generation. So much so that he kept a large piece of it on his desk. It was big and shiny and luminously black. In a twist of irony, Cook is remembered by his company through its only nuclear plant being named after him.

Electric utilities believed they had to be in New York because that is where they had raised their money — and they had needed to raise enormous quantities of money from the time of the first power plant.

Many myths attended the raising of capital. One was that to keep up with the blistering pace of electric demand, 7.5 percent per year at the end of the 1960s and the beginning the 1970s, utilities would drain the capital markets; take all the available money. It was said that Britain could not privatize the Central Electricity Generating Board because there was not enough liquidity in the London market to afford such a giant offering. (In reality, the public offering was oversubscribed when it was listed by Prime Minister Margaret Thatcher.)

It was clear by the 1970s, even before the energy crisis in the winter of 1973, that the U.S. government was going to be a bigger player in the future of the industry than the banks and investment houses. So gradually the trade associations moved to Washington, and the utilities moved their headquarters back into their service territories.

Washington was becoming all-important. It probably started with the National Environmental Policy Act of 1969, which was interpreted by the courts as having wide application. This was a lesson learned by the nuclear industry when it claimed exemption from NEPA under the Atomic Energy Act of 1954. No way, said the U.S. Court of Appeals for the District of Columbia Circuit. Afterward, the electric power industry realized that it had to be pro-active with legislation; it had to be in Washington and it had to lobby — and lobby hard.

The result has been that EEI, particularly under its well-liked president Tom Kuhn, has become one of the most effective trade association lobbying Congress. Its role was to prevent damaging legislation, to educate members of Congress, and to divert campaign funds to those who saw things its way.

Gradually, the whole industry came to look to Washington for redress; to ask for favors and stall damaging legislation. Its last great victory was in preserving dividends — so important to utility stockholders — from the taxman.

Now the industry is in a new crisis; a crisis that has arisen not because of policy, but of technology. Call it “the solar onslaught.”

The industry is fighting for its identity, its profitability, and its traditional role as the monopoly supplier of electricity. Solar rooftop installations are fraying the very fabric of the utilities and their business models and, for the first time in a long time, the powerful lobby that is EEI cannot help.

This is not a battle which will be fought in Washington. This is a state issue, and there are strange alliances ranged against the traditional utilities: the Tea Party with the greens, evangelicals with politically-correct Democrats.

Sadly, it is a battle in which the odds — as in journalism and telephony — are on the side of the new. Disruptive technology is at the gate. When rooftop solar is aligned with a really serviceable battery (the new Tesla offerings do not do the job yet), the utilities will feel like the makers of silent movies when the talkies came along.

The great star, Rudolph Valentino, did not survive the new technology. What of today’s utilities?  — This column was previously published in Public Utilities Fortnightly.

 

 

A Tale of Two Technologies

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It was the best of outcomes, it was the worst of outcomes.

The nation is awash in natural gas and oil. This did not just happen: It is the result of a long and fruitful collaboration between the government and private industry to develop advanced hydraulic fracturing. But one corporation and one man stand out: Mitchell Energy and its late visionary founder, George Phydias Mitchell.

Whenever I point this out I get a flood of mail, often abusive, claiming that modern fracking was a natural development of the traditional stimulation techniques used in the oil patch for many decades.

I love the story of fracking because it proves a lot of truths about how things get done.

First, the private sector needed to realize there were better ways of doing things, and that scientific resources in seismic and mapping would be essential. They also needed a better drill bit.

Enter Sandia National Laboratory. Government support for advanced drilling and extraction began in 1976 and continued through the 1980s and 1990s. Commercial exploitation began in the 1990s and exploded a decade later.

Previous government ideas about fracking were a little crazy and featured huge underground explosions using nuclear devices. Yes, just a little bomb was what was proposed. There were at least two government programs aimed at nuclear stimulation of natural gas in the 1950s and 1960s: One was called Wagon Wheel and the other, Gasbuggy.

Back in those days, nuclear was popular and people wanted it to have civilian uses of all kinds, possibly as an expiation for the bomb. Anyway nuclear gas stimulation ran into an immutable problem: the gas thus produced was radioactive. Not the kind of blue flame you want on your stovetop.

The nuclear enthusiasts, led by the congressional Joint Committee on Atomic Energy and the Atomic Energy Commission withdrew. Still, many were convinced that there would be a fix if the programs would just be allowed to continue. These programs, well, bombed. There were contractors, but no private partners.

Another tale of the government going it alone in energy had a dismal end. It was a program at Los Alamos National Laboratory to produce geothermal steam in a new way. The idea was scientifically sound. Los Alamos sits on an extinct volcano and deep in the earth there are what are known, rather unscientifically, as “hot rocks.” The plan was to drill into these heated formations, pour in some water and, wham, there would be steam aplenty to drive turbines on the surface.

This program was the brainchild of Los Alamos, and I crawled over the site in the early days. Enthusiasm was abundant. It seemed to be an elegant addition to the geothermal resource base. However, there was too much government, in the form of the national lab, and not enough input from commercial geothermal operators.

After 17 years, the government funding was threatened, and I was invited to what turned out to be the burial for the project.

Finally, the government people met their commercial opposites and it didn’t go well. The scientists knew, down to the smallest microbe, life down the well. They had oodles of data but it was the wrong data. In commercial geothermal, the cardinal question is the projected life of the reservoir. Sadly, Los Alamos had not kept records from which that could be calculated. The scientists had not thought of that necessity.

Then there were questions about what to do with the brine that would be a pollution problem when discharged from the turbine on the surface of the fragile high desert. There will be no brine problem, said Los Alamos. “We’ll not bring the waste water to the surface. We’ll use a heat exchanger ,and the brine will dissipate down the well.” The commercial operators said, “That won’t work. Your temperatures are not hot enough to use a heat exchanger. You’ll have to bring the steam to the surface and deal with it there after it comes out of the turbine. We’ve tried heat exchangers down geothermal wells and the heat degradation is too great. No deal.”

This is tale a tale of huge success and dismal failure, and it has a moral: Public-private partnerships can work. The government, on its own, gets off track and screws up with our money. But private industry needs the government to shoulder the risk and provide its huge resources of capital and science to further the public interest.  — ​This column was previously published in Public Utilities Fortnightly.


The Unsinkable Donald Trump

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How many ways do I love Donald Trump, presidential candidate?

I love Donald Trump because he lives in a parallel universe.

I love Donald Trump because he is preposterous.

I love Donald Trump because he is outrageous.

I love Donald Trump because he is vulgar.

I love Donald Trump because he is an embarrassment.

I love Donald Trump because he is simplistic.

I love Donald Trump because he loves money: his.

I love Donald Trump because he makes a mockery of capitalism.

I love Donald Trump because he has trashed New York, Atlantic City and Los Angeles with tasteless structures.

I love Donald Trump because he lives in a parallel universe.

I love Donald Trump because he is an alien.

I love Donald Trump because he makes all other political grotesques look normal.

I love Donald Trump because he has the audacity to think he should be president.

I love Donald Trump because he loves Donald Trump.

It is the sheer ego of the man that overwhelms. Not since William Shakespeare created Malvolio in “Twelfth Night” has there been such a human edifice of self-adulation. Malvolio, one of Shakespeare’s enduring characters, has — as Trump would have us believe of himself — moral standards. But he has arrogance as high as the Trump Tower on Fifth Avenue in Manhattan, and he is lambasted for being full of self-love.

Malvolio is a character in a comedy written in 1601. To measure The Donald, we must do so against the towering clowns of today.

First, let us take a look at Boris Johnson. He is painted in broad brushstrokes in British politics. He has been in many predicaments, from infidelity to just recently infuriating London’s famous taxi drivers by swearing at them – and from atop his bicycle, no less.

But Boris has also been a successful mayor of London (He saved the double-decker buses. Thank you.) and a vigorous performer in the House of Commons. And he is an odds-on favorite for Conservative prime minister if David Cameron should falter.

Boris is a classicist with a colossal ego, who hints that he is comparable to Pericles, the great statesman, orator, patron of the arts and general during the Golden Age of Athens from 460-429 B.C. He has a plaster cast of Pericles in his office, and has even compared London to Athens. One suspects Trump has a statue of himself in his office for religious purposes.

How about Sarah Palin? We’re getting warmer. She clubs halibut, decapitates turkeys (Watch out, Donald!) and somehow convinced some Republican kingmakers that she was of presidential timber. Like Trump, she was more of an entertainment on television than a serious politician — although we were getting close and if voters had not intervened, we might have had Palin a heartbeat away from the presidency.

When it comes to naked love of self, Trump is up there with the more extreme Roman emperors. Think Nero, who declared himself a god. But that might be a demotion for Trump.

You have got to love a man who can bring Iran into the fold in a day, humble China, befriend Vladimir Putin and make America “great again.” One wonders if he can do it all in six days.

I love Trump because Malvolio’s words fit, “Be not afraid of greatness: Some are born great, some achieve greatness, and some have greatness thrust upon ’em.”