Utilities in a Time of Change and Challenge: Upcoming Conference November 17-18
Sign up for the #UTCC conference at this link.
Dear Colleague,
If you count a very young — aged 17 — reporter crawling around the construction of the Kariba hydroelectric dam on the Zambezi River between Northern Rhodesia and Southern Rhodesia, now Zambia and Zimbabwe, I’ve been writing about the electric business for a very long time. Even if you start when I joined McGraw-Hill in 1970, or when I founded The Energy Daily in 1973, it still amounts to a long time.
Yet, I think the electric utility business is facing greater challenges today than it has faced in all the time that I’ve been recording its ups and downs. New technologies and new players are encroaching on the utility space – often quicker than the established players realize.
That’s why I’ve joined forces with Public Utilities Fortnightly to examine the challenges in this vital industry, and to explore ways forward.
To do this, I and the talented staff at PUF are putting together a conference with a faculty of the best thinkers in the industry and those who serve it. A blue-ribbon group, if you will. The conference will take place, appropriately I feel, in Scottsdale, AZ on November 17 and 18, concluding with a tour of one of Arizona Public Service Company’s impressive solar installations.
So far, we have secured these remarkable speakers:
- Irwin Stelzer, founder of National Economic Research Associates, and a seminal thinker and consultant to the industry for many decades. Stelzer has branched out to advise such players as Google, Heathrow Airport and two British prime ministers. He has often been at the right hand of Rupert Murdoch, the world’s most successful media entrepreneur.
- Susan Bitter Smith, chairman of the Arizona Corporation Commission — the regulator in Arizona.
- Steven Mitnick, author of “Lines Down: How We Pay, Use, Value Grid Electricity Amid the Storm,” which has been called “an invaluable guide to understanding the value of electricity and reliability.” Mitnick has had hands-on experience running a transmission company and advising the governor of New York.
When I worry about the utility industry, it’s because I’m haunted by what has happened to my own beloved newspaper industry, which has been irreparably damaged by not responding fast enough to new technologies; or by the sad fate of the Western Union Company, which had a grip on long-distance communications that looked as though it would last for centuries, but which was brought low by the Internet.
The utilities, to my mind, face the same challenges that the health care system does: if the healthy leave the insurance plans, the sick will pay much more. If the utilities allow their best customers to abandon them, the rest will pay much more for the poles and wires that link together modern society.
If we don’t do this transformation right, we’ll end up with an electric system more like Amtrak than the proud passenger railroads of yore.
I hope you’ll accept my heartfelt request to come to Arizona with as many of your colleagues as can be spared. The future is staring at us now. And are we, as Shakespeare said, to take this tide “at the flood which leads on to victory?”
The alternative, I fear, is to be making silent movies after the talkies have been invented.
See you in Scottsdale.
Kind regards,
Llewellyn King
A Primer for the New Congress
Welcome to Washington, new members of Congress. It is a city of museums, statues, self-importance and arcane ways.
After a post-campaign vacation, you will be ready to take on the world — or at least this city — and begin to make things right. You are coming here to cut through the crap, straighten out the mess, to return the peoples’ government to the people.
You are feeling good, even invincible. This sense of euphoria and possibility is normal. It is nothing to be worried about — and it will pass.
As most of the new class is Republican, you are going to stop the rot come what may. No more liberal shenanigans, no more creeping socialism, no more welfare state, no more European-style mollycoddling of the undeserving.
You are going to loosen the shackles on business and watch it rise like a jolly green giant who has shaken off his captors, including the Bureau of Land Management, the Fish and Wildlife Service, the Bureau of Ocean Energy Management, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the Department of Energy, the Environmental Protection Agency and the Internal Revenue Service.
Oops! Before we go any further, maybe you should pick a target. EPA and IRS are very unpopular — those two are enough for now.
It goes without saying that you are against Obamacare and that should be repealed, or go unfunded, or be replaced with something. Be careful: it may not be as unpopular with your constituents as it is at the country club.
But do not let things like that worry you. You have been elected to Congress. Hallelujah! Reality will not set in until you get to your first caucus, or you see the lousy office you have been assigned, or you learn that that committee appointment you cherished is not coming your way.
Again, worry not. You are about to make a lot of new friends; really nice people, people who will do anything you ask. They have advice about where to live, whom to hire, what schools to send the little ones to — if you have not already decided to leave them back home, which you may when you find out the cost of housing in Washington.
Anyway, the new friends will help you through the intricacies of being a member of Congress. They will advise you on which forms to fill in, how to get your expense reimbursements. Such helpful people. They will also give you advice on issues that are new to you, like net neutrality, the Law of the Sea, and the reason companies have to move overseas.
Amazingly, they also have tickets to wonderful sports events with local teams: the Redskins (football), the Capitals (hockey), the Nationals (baseball). They also have tickets to cultural events, from plays at the Kennedy Center to exhibitions at the National Gallery of Art. It helps so say you love the arts when you are railing against the National Endowment for the Arts, PBS and NPR.
These new friends are the lobbyists, and they have your number already. They know what you like to drink or eat, and whether you prefer to bike, hike or sail. Everything can be arranged. Trust them. They will also guide you on delicate legislative issues; no pressure, just guidance. And who are you to refuse a friend?
Dear Democrats, you are not forgotten but not well remembered either. Your party lost, and you know what that makes you. For two years you must walk the halls of Congress mumbling about income redistribution; how many successes President Obama actually chalked up, but failed to trumpet; and cursing, under your breath, the presence of money in politics — unless it is union money.
There will also be real pleasure for you in thinking up hateful things to say about the new Senate majority leader, Mitch McConnell, and be quoted saying them in social media.
Whatever your party, as your first term wears on, you will get to feel at home on Capitol Hill. You will know how to play the lobbyists, one against the other, and how to discomfort the leadership of your own party. But mostly, you will come to love Big Government. Welcome to the Washington elite. — For the Hearst-New York Times Syndicate
Europe Faces Winter on the Edge of the Abyss
BURGENLAND, Austria –There is another world crisis brewing – and one for which President Obama cannot be blamed. The Europeans and have made a mess of things, and now the wolves are at the door.
The first snarling wolf is deflation. Europe’s economies are so weak, so close to recession, that the very real danger of deflation – falling prices – has its economists petrified. It ought also to have its politicians in anguish, but whether it does is less clear.
Europe’s big-driver economy, Germany, as well as France and Italy, are on the edge. The German miracle is ailing, and Berlin may have been writing the wrong prescriptions for the rest of the 18 countries that share the euro as their currency. It has been aided in this effort by the International Monetary Fund.
That prescription, which often seems to harm the patient, as in Greece and Spain, is for austerity – which appears to work better on paper than in the real world. Germany worries about profligate borrowing throughout the European Union. But if the German economy is to escape recession, Chancellor Angela Merkel may have to borrow some money herself and inject it into infrastructure spending to keep Germany competitive and its workers on the job.
The European Central Bank (ECB) has been slow to institute a badly needed program of buying qualified bonds, known as quantitative easing. In the United States, the Federal Reserve, in a program that is now ending, has pumped more than $1 trillion into the economy and helped pull the economy out of recession. But ECB has been timid because it has no clear direction from the European political establishment — pointing up how cumbersome and directionless the European Union structure has become. It has a parliament, which has no power, and is increasingly attracting members who are actually opposed to the European project.
The European Commission has arguably too much power centered in the bureaucracy in Brussels, but no clear direction form its controller, the Council of Ministers. Trouble is the ministers can disagree and veto needed courses of action.
The economic crisis points up the ungovernable nature of Europe and its present institutions. If Washington is gridlocked, Europe is by structures that cannot deal with crisis and what often appear to reflect as many policies as there are members (28) in the EU.
But it is not just the economic wolf that is at Europe’s door. The Russian bear is there, too. Already there is an undeclared war raging in Ukraine.
At the Association of European Journalists' meeting here, a spokesman from the Ukrainian government, who asked not to be identified by name, expressed the sense in Ukraine that it has been betrayed by EU bungling.
“Europe sees Ukraine as its European neighborhood partner. But in Ukraine, the truth is different: Ukraine’s view is that Europe let us down. We are hurt, bleeding. We have been betrayed by a neighbor that, six months ago, we saw as a brotherly nation,” he said.
What was not said was that Europe may freeze this winter if the Putin regime — a growling wolf — wants to punish Ukraine and its neighbors. Europe is hopelessly dependent on Russian gas, which is used mostly for heating. Germany gets 40 percent of its gas from Russia, and Finland, Estonia, Latvia and Slovakia get 90 percent. Russian gas makes its way — largely through Ukraine — down into Italy, and even the United Kingdom has some small exposure.
If the gas goes off, Europe freezes and its economies go south in an avalanche. The most hopeful thing for Europe this winter is that with the world oil price falling, Russia’s own fragile economy may dictate that it keeps the gas flowing — but it will force up the price where it can.
Washington, with a new Congress, might want to brace for Europe’s winter of crisis and disaster. If Europe goes into severe recession, can the U.S. economy escape major harm? The new Congress will be on a sharp learning curve. — For the Hearst-New York Times Syndicate
The Ben Bradlee I Knew and the Creation of ‘Style’
Energy Experts Predict Crisis-Free Winter
I’ve Got the Old-Guy Cellphone Blues
I have to face it: like most people of my generation, I am a technological dunce.
In my pocket, there is an electronic miracle in the form of a cellphone. I am told it has enough computing power to plan a moon shot and run a nuclear submarine, or wake me up in the morning, organize my schedule, and provide me with reading material and audio and visual entertainment all day long. Wow!
On a good day, if I have remembered to charge this pocket Einstein, I can make a phone call. I can receive phone calls, too. But that is more problematic because I have to find it and handle it gently, otherwise it disconnects the calls – which leads people to believe that I do not want to speak to them.
Mostly, I would be happier if the phone did not do such extraordinary things, for it has become a reproving presence, mocking and denigrating me because I cannot calculate on it the cost of traffic congestion in the United States or, for that matter, my checking account balance – a truly modest calculation.
Apart from making me feel even more stupid than necessary, the wretched super-device – and I hate to make this accusation – is sneaky. It steals money. It lives in my pocket and helps itself to my money which, metaphorically, also dwells there. Unlike real phones – a dying breed like the necktie – you have to be deliberate about disconnecting a call, or you will continue to be charged for it.
Woe betide you if you take the malicious little bloodsucker out of the country: The fees and charges can cost you as much as your trip. And if you turn on the data roaming to peek at your email, you may want to begin a new life for yourself, wherever you are, because your financial destruction, which this seemingly innocent action will trigger, will probably be complete.
In a simpler time, when I left home in the morning, I needed just my wallet and my keys. Now I need a checklist of devices.
I need a wristwatch, because I forget that I can get the time on my cell phone and other electronic gadgets. Probably I could find out how many days I have left on earth, if I knew which app to download on my cellphone – preferably a free one.
I need an electronic book mostly because I have spent a lot of money getting one – and now I am damned well going to read books, newspapers and magazines on it.
I need the dreaded cellphone because I have become addicted to it. Maybe I can go to cellphone addiction rehab at the Betty Ford Center – if I can afford it, after all the money I have spent on roaming charges.
Of course, I cannot get out the door without a laptop, or some such device, to check my email and my Facebook, Twitter and LinkedIn accounts because nobody is going to phone me, despite the fact that everyone in America seems to have a cellphone. This is the Great Cellphone Paradox: The more people have cellphones, the more they prefer email or some version of it.
The cellphone manufacturers will respond by equipping new cellphones with apps for everything on earth, from dealing with in-laws to finding out how much the dude at the next desk really earns. The one thing you will not be able to do with them is, er, make a phone call.
In the meantime, I will have to persevere with typing with my thumbs or move to North Korea. Now if only I could borrow a cellphone, so I could call my cellphone, so I can find it. — For the Hearst-New York Times Syndicate
Buckets of Iced Water Are Fun, Not an Answer
Two seemingly unrelated items of medical news: Ebola is devastating West Africa, and may spread around the world, and the entertaining ice bucket challenge has raised $115 million for ALS research.
The linkage is that both diseases have needed and still need medical research. So do hundreds of other diseases and conditions.
The truth is that the amount of money the United States spends on medical research is falling precipitously. It has been hit by budget worries in Congress, sequestration, and the decline in research funding by corporations.
Leo Chalupa, vice president for research at The George Washington University, said on “White House Chronicle” last weekend that the National Institutes of Health budget for research grants has decreased by 20 percent since 2004. He said that five out of six research applications are now rejected by the NIH, the principal conduit for federal funding of medical research.
The George Washington University is a member of the Science Coalition, a group of more than 60 of the nation's leading public and private research universities. Since its establishment in 1994, the coalition has advocated for sustained federal investment in basic scientific research as a means to stimulate the economy, spur innovation and drive America's global competitiveness.”
The late David Fishlock, science editor of the Financial Times, wrote and spoke elegantly about the problem democracies have in sustaining scientific funding; how they tend to be heavy on the gas, and then heavy on the brakes.
The government funds research through its own network of institutes and laboratories, and through grants to universities and corporations. When it comes to capturing the energy and flair of young researchers, the universities are vital.
Jennifer Reed, associate professor in the Department of Chemical and Biological Engineering at University of Wisconsin-Madison, said on “White House Chronicle” that universities contract with graduate students for five years, but the federal grants for research, when they get them, can be for less time. Reed said this is devastating to the research and the lives of the young researchers. Her funding comes from the Department of Energy and is aimed at using renewable materials to make alternatives to fossil-based plastics; also energy storage.
The problem is acute in medical research, most of which has its genesis in grants made by the NIH. Contrary to popular belief that medical funding is shouldered in the private sector, Chalupa said pharmaceutical companies often have narrow interests in particular drugs for particular conditions. “They have shareholders to answer to,” he said.
But it is not just funding that bedevils research, it is politics as well. Good projects are canceled and bad ones are incubated, depending on their appeal to particular constituencies. For example, fusion research has been lavished with money compared to other nuclear research needs, including the increased use of nuclear medicine to save lives and suffering.
Also the government funds research through many agencies, and this often reflects local or political pressure. Some researchers have found that they have to shop for funding, from NIH to the Pentagon to the National Science Foundation. Others have turned to crowd-funding, including the famed virus hunter Dr. W. Ian Lipkin, who directs the Center for Infection and Immunity at Columbia University's Mailman School of Public Health. Dr. Lipkin is now in high demand because of the Ebola crisis. But if there had been more work on viruses since the discovery of Ebola in 1976, there might now be a vaccine or other therapy to deal with the epidemic.
The United States is still the creative engine of the world. But without steady expenditure, it won't be firing on all cylinders. Chalupa and Reed warned China is increasing its funding for research rapidly, and is set to overtake the United States.
One (or more) patient launched the iced water caper that has been so successful out of frustration with the ALS research effort. It has been creative, but it will not keep the United States as the preeminent home of brave discoveries. Or to help the sick. — For the Hearst-New York Times Syndicate
Buckets of Iced Water Are Fun, Not an Answer
Two seemingly unrelated items of medical news: Ebola is devastating West Africa, and may spread around the world, and the entertaining ice bucket challenge has raised $115 million for ALS research.
The linkage is that both diseases have needed and still need medical research. So do hundreds of other diseases and conditions.
The truth is that the amount of money the United States spends on medical research is falling precipitously. It has been hit by budget worries in Congress, sequestration, and the decline in research funding by corporations.
Leo Chalupa, vice president for research at The George Washington University, said on “White House Chronicle” last weekend that the National Institutes of Health budget for research grants has decreased by 20 percent since 2004. He said that five out of six research applications are now rejected by the NIH, the principal conduit for federal funding of medical research.
The George Washington University is a member of the Science Coalition, a group of more than 60 of the nation's leading public and private research universities. Since its establishment in 1994, the coalition has advocated for sustained federal investment in basic scientific research as a means to stimulate the economy, spur innovation and drive America's global competitiveness.”
The late David Fishlock, science editor of the Financial Times, wrote and spoke elegantly about the problem democracies have in sustaining scientific funding; how they tend to be heavy on the gas, and then heavy on the brakes.
The government funds research through its own network of institutes and laboratories, and through grants to universities and corporations. When it comes to capturing the energy and flair of young researchers, the universities are vital.
Jennifer Reed, associate professor in the Department of Chemical and Biological Engineering at University of Wisconsin-Madison, said on “White House Chronicle” that universities contract with graduate students for five years, but the federal grants for research, when they get them, can be for less time. Reed said this is devastating to the research and the lives of the young researchers. Her funding comes from the Department of Energy and is aimed at using renewable materials to make alternatives to fossil-based plastics; also energy storage.
The problem is acute in medical research, most of which has its genesis in grants made by the NIH. Contrary to popular belief that medical funding is shouldered in the private sector, Chalupa said pharmaceutical companies often have narrow interests in particular drugs for particular conditions. “They have shareholders to answer to,” he said.
But it is not just funding that bedevils research, it is politics as well. Good projects are canceled and bad ones are incubated, depending on their appeal to particular constituencies. For example, fusion research has been lavished with money compared to other nuclear research needs, including the increased use of nuclear medicine to save lives and suffering.
Also the government funds research through many agencies, and this often reflects local or political pressure. Some researchers have found that they have to shop for funding, from NIH to the Pentagon to the National Science Foundation. Others have turned to crowd-funding, including the famed virus hunter Dr. W. Ian Lipkin, who directs the Center for Infection and Immunity at Columbia University's Mailman School of Public Health. Dr. Lipkin is now in high demand because of the Ebola crisis. But if there had been more work on viruses since the discovery of Ebola in 1976, there might now be a vaccine or other therapy to deal with the epidemic.
The United States is still the creative engine of the world. But without steady expenditure, it won't be firing on all cylinders. Chalupa and Reed warned China is increasing its funding for research rapidly, and is set to overtake the United States.
One (or more) patient launched the iced water caper that has been so successful out of frustration with the ALS research effort. It has been creative, but it will not keep the United States as the preeminent home of brave discoveries. Or to help the sick. — For the Hearst-New York Times Syndicate
Boris Johnson: The Man Who Would Be British Prime Minister
Make a note of the name: Boris Johnson. He is mayor of London. And in a few years, he has a high chance of becoming British prime minister.
In a time when politicians tend to be bland, and to believe it necessary to claim a politically correct pedigree, Johnson is a mold- breaker.
He has been larger-than-life and in scrapes of his own making throughout one of the most colorful careers in public life. Yet Johnson has the knack for transmuting disaster into celebrity — and celebrity into fame and electoral success.
At Balliol College, Oxford, some claim he won the student presidency by pretending to support the Social Democratic Party, the dominant faction at the university. He was a member of Oxford's Bullingdon Club – a raucous dining group that specialized in trashing restaurants and willingly paying for the damages later. A film about these goings on, called “The Riot Club,” is in preparation.
After taking a less-than-impressive degree in Classics, Johnson, whose family on both sides was well-connected, launched himself on the world as a management consultant. But that was short-lived because, as he said, “Try as I might, I could not look at an overhead projection of a growth-profit matrix and stay conscious.”
On to journalism — a refuge of sorts for scoundrels — and a trainee job at The Times of London. Oops! Johnson gets fired for falsifying a quote from his godfather. He works on a provincial paper for a while, and then moves on to the high-Tory Daily Telegraph, where he rises to assistant editor.
Meanwhile, Johnson has political ambitions and gets himself elected as a Conservative member of Parliament, where his antics enliven the House of Commons. As the British are a lot less sensitive about conflicts of interest than are Americans, soon he was editing the prestigious literary and conservative political magazine The Spectator while rising in the ranks of the Conservative Party. He is one of the most prolific writers to have sat in the House of Commons since Winston Churchill.
Johnson, who has a great, white shock of hair that belies the fact the one grandfather was Turkish, rides a bicycle and litters his oratory with classical references. He likes to use his knowledge of the ancient world to illustrate contemporary issues. He even made a television program on the Romans.
But scandal has a way of finding Johnson and his rake’s progress toward greatness. The Spectator – with a tiny staff — erupted sexual scandal during his time in the editor's chair. Get this: the publisher, an American woman, was having an affair with a blind member of the British cabinet, the features writer was having an affair with a secretary and Johnson, rising political star and father of four, was, you got it, in what the British like to call a “leg over” with a star columnist.
He was demoted in the conservative party, so he left the House of Commons and ran for mayor of London, defeating the socialist Ken Livingstone. He won a second term again running against Livingstone.
As mayor Johnson championed a revolutionary, new London bus. He cheered on London and the Olympics, took credit for its success and when he got stranded on a zip line with two British flags, one in each hand, he turned the disaster into another Johnson publicity success. He entertained the world’s press while suspended in mid-air.
Johnson is now planning a return to national politics in 2015, when he will contest an expectedly safe Conservative seat near London. As a kind of campaign opener, he has penned an extraordinary article in which he links London to ancient Athens and British democracy to the original. He glosses over the failings of the Greek state and the fact that Pericles, his hero, finally lost to the Spartans, while humorously making antiquity available to the British voter of today. It is political literary fun at its best.
Johnson’s re-entry into national politics will come at a critical moment when extreme-right parties threaten the old conservative bloc and Prime Minister David Cameron’s standing is low, and he is accused of the “re-toxification” of the Conservative Party.
Read one of the greatest pieces of political writing by seeking out The Spectator on the Web. It is glorious stuff. — For the Hearst-New York Times Syndicate
- « Previous Page
- 1
- 2
- 3
- 4
- 5
- …
- 29
- Next Page »