Monopoly Area Monday

Welcome to Grid Brief! Today, we’re looking at power generation in America’s traditional monopoly areas with relevant news items. Scroll to the end for great conversation starters about where JD Vance stands on energy issues and some interesting reads around the web.

And here’s a map to orient you as we move through the areas:

Northeast

In the past week, New York and New England experienced a significant heatwave, driving up electricity demand as residents and businesses relied heavily on air conditioning to cope with the soaring temperatures. This spike in demand was reflected in the increased usage of natural gas and hydroelectric power, which maintained a steady supply. However, the region faced challenges with maintaining consistent energy output, highlighting the strain on the grid during extreme weather conditions​

Carolinas

Another week largely below 40,000 megawatthours was less straining on the grid. Electricity production saw increased solar generation due to consistently sunny weather, despite frequent afternoon thunderstorms. The storms also led to fluctuations in hydroelectric output. Looking ahead, continued high temperatures and storm activity are expected to maintain this pattern, with solar remaining strong while hydro might see further short-term volatility due to storm-driven water flow variations

Tennessee (TVA)

The recent hot weather in the region led to increased demand for electricity, particularly for cooling. In response, TVA has been asking customers to conserve power during peak times to manage the high demand effectively. Additionally, TVA is investing $15 billion over the next three years to expand its generation capacity and improve grid reliability, including adding 3,800 megawatts of new generation and 10,000 megawatts of solar energy by 2035.

Southeast

The Southeast saw a week that looked almost perfectly identical to the previous one. Predictable warm temperatures continue to create a reliance on natural gas to keep the region cool and the lights on.

Florida

Florida's electricity generation saw significant fluctuations this past week, primarily due to the impact of weather conditions. The recent storms and subsequent outages have led to a temporary decrease in production. Despite this, Duke Energy has announced a rate reduction, citing lower natural gas costs, which will benefit residential customers starting this month.

Texas (ERCOT)

During the week of July 8-15, 2024, Texas faced significant power challenges due to the impact of Hurricane Beryl. The hurricane made landfall near Houston as a Category 1 storm, bringing heavy rain, high winds, and causing extensive power outages. Over 700,000 customers in Houston were without power due to downed trees and power lines. Beryl's winds, up to 90 miles per hour, and rainfall caused widespread damage and flooding.

Comparatively, power generation this week saw a noticeable dip due to the storm's disruption, particularly in the Houston area, where natural gas and wind power generation were significantly affected. Efforts to restore power were ongoing, but the impacts of Beryl were evident in the reduced overall generation and the challenges faced by emergency services in addressing the high demand for high-water rescues and live wire calls​

Northwest

The Northwest experienced a notable increase in hydroelectric power generation this past week, driven by melting snowpacks and increased river flow. Cooler temperatures in the region have also led to reduced overall electricity demand compared to the previous week, if only slightly. Additionally, the Northwest Power and Conservation Council has reported ongoing efforts to improve grid resilience in anticipation of summer heatwaves, which could impact power stability in the coming months .

Southwest

Temps over 100 degrees pushed demand yet even higher, eclipsing 25,000 megawatthours in many days early in the week. A bit of cooling helped quell demand and let renewables shoulder a bit more load as the weekend rolled in.

Conversation Starters

RCP: Energy Policy and Rising Costs: A Looming Election Issue. An interesting editorial in RCP Energy discusses the ongoing impact of high gas and electricity prices on Americans, with electricity costs rising over 8% since 2021. It highlights how current energy policies contribute to these issues, potentially influencing voter sentiment in the upcoming November elections.

Where does JD Vance stand on the energy and electrical issues that matter most?

Fracking and Fossil Fuels: J.D. Vance is a strong supporter of fracking and fossil fuels. He has criticized environmental regulations that he believes hinder domestic energy production and economic growth. Vance's stance aligns with promoting increased domestic oil and gas extraction, arguing that it is crucial for energy independence and economic stability. His policies favor continued investment in traditional energy sources, particularly as a means to support jobs and industry in regions like Ohio.

Renewables and Climate Change: Vance has expressed skepticism about climate change and is critical of policies that push for rapid transitions to renewable energy. He has argued that such policies disproportionately benefit countries like China and harm American workers. Although he acknowledges the potential of renewables, he stresses the need for a balanced energy policy that includes significant roles for fossil fuels and nuclear energy.

Nuclear Energy: Vance supports nuclear energy as part of a diversified energy strategy. He sees it as a critical component for ensuring a reliable and stable energy supply while also addressing some environmental concerns associated with fossil fuels. Vance has advocated for policies that support the development and expansion of nuclear power as a means to enhance energy security and reduce greenhouse gas emissions.

These positions highlight Vance's approach to maintaining a robust and diverse energy portfolio, emphasizing economic growth and national security over aggressive climate policies.