Tag Archives: ECA

Facing the Risk in Fossil Fueled Electricity

I recently wrote about how our risk tolerance/aversion powerfully affects our estimation of the social cost of carbon, but obviously that’s not the only place that risk shows up in our energy systems.  Fossil fuel based electricity is also exposed to a much more prosaic kind of risk: the possibility that fuel prices will increase over time.

Building a new coal or gas plant is a wager that fuel will continue to be available at a reasonable price over the lifetime of the plant, a lifetime measured in decades.  Unfortunately, nobody has a particularly good record with long term energy system predictions so this is a fairly risky bet, unless you can get somebody to sign a long term fuel contract with a known price.  That doesn’t really get rid of the risk, it just shifts it onto your fuel supplier.  They take on the risk that they won’t make as much money as they could have, if they’d been able to sell the fuel at (higher) market rates.  If the consumer is worried about rising prices, and the producer is worried about falling prices, then sometimes this can be a mutually beneficial arrangement.  This is called “hedging”.

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Think Globally: Power Locally

Join us for a day of Presentations and Workshops Building the Local Energy Movement

Sat. Feb. 22nd, 2014 9:00 am – 4:00 pm
Natural Grocers
100 W South Boulder Road,Lafayette, CO 80026

Register Here

Share Your Successes
Trouble Shoot Your Challenges
Build Your Teamwork Skills
Learn How to Get Started

Co-Sponsored by:

Clean Energy Action, Lafayette Energy, Fossil Fuel Free Denver,  Empower Our Future (Boulder), CO-Force (Coloradans for Fair Rates and Clean Energy), Colorado Renewable Energy Society, Coop Members Alliance, RE-VOLT@Pueblo, Southeast Colorado Renewable Energy Society

For more information contact:

      Robb Menzies        303-915-5306        robb.menzies (at) gmail.com
Leslie Glustrom     303-245-8637       lglustrom (at) gmail.com

Workshop Agenda

9-9:15— Registration
9:15-9:30—”The Challenge and the Vision,” Leslie Glustrom, Empower Our Future (Boulder)
9:30-10:15—“Stepping It Up in Fort Collins,” Owen Smith, Rocky Mountain Institute
10:15 Break
Breakouts—Successes, Challenges, Solutions
10:30-11:15—Breakout #1- Goals , Messaging and Teamwork #1
11:15–11:30—Report Back From Breakout #1
11:30-12:15—Breakout #2- Organizing , Strategies and Teamwork #2
12:15-12:30—Report Back From Breakout #2
12:30—1:15 Lunch
1:15-2:15—Officials Panel (Boulder, Lafayette, Denver—Invited )
2:15-2:30— Break
2:30-3:00—Modern Campaign Methods – Robb Menzies
3-3:30—Breakout #3—By Community—Next Steps and Teamwork #3
3:30- 3:45—Report Back from Breakout #3
3:45-4:00—Wrap Up and Next Steps


Reinventing Fire in Communities, Owen Smith, Rocky Mountain Institute