A Penny Saved Is a Penny Earned-The Next Step
While I can’t stand pennies, Benjamin Franklin had it absolutely correct!
Most people can’t get the grasp of graphs and while I didn’t really want to include it, it is fairly necessary for this discussion.
Don’t worry though! I’ll give a quick explanation of it!
What the graph shows is that depending on how you look at it, to make the equivalent of $1000 from 1997, you would have had to make between $1250 and $1700 in 2007 to have the same amount of buying power.
It's a lot more complicated than just that, but the basic concept is correct.
Here’s another way to look at it:
Theoretically, if it cost you $1000 to power your household in 1997, it would have cost between $1250 and $1700 in 2007.
I personally think the numbers are quite conservative and the causes for the increase are very debatable (peak oil, general inflation, dropping value of the dollar, etc), but I think this gets the point across.
I haven’t looked at the numbers for 2008, but I think we’re going to be in for a shock.
But what does this mean for the Pickens Plan?
*****
One possible meaning is that if it takes 2 years to get the funding together and implement the plan, every $1000 that is invested may actually have $870 in buying power (or even less) by the time it’s ready to be spent. A big loss is taken even before any income starts coming in.
It could also be looked at like this: If an initial investment of $400 billion was made today and it took two years for land purchases, environmental impact studies, transmission agreements, easement grants, congressional hearings (Yes, I think there will be some. Almost would bet on it!), and all the other jumping through hoops that is required for such an endeavor, you would actually end up needing $452 billion---that’s about 13 extra cents for every dollar invested, due to inflation.
Immediate, tangible investment will help to protect the investors and consumers alike.
So how do we minimize or even avoid this problem? I personally don’t like the idea of additional tax credits. Bean counters tend to view tax credits as somehting that needs to be compensated for by raising taxes on others. There are more than enough existing credits to offset a large part of the cost.
The people who pump large sums of money into such projects should look at it as a long term investment, and investments are basically gambling. If you can’t afford to lose, don’t bet. Most of us don’t have the liquidity to risk in the first place.
PERSONAL POLICY
One idea for the little dogs (me included) is to start with conservation.
Most conservation doesn’t cost us a dime, can actually put a couple of dimes back in the pockets of the consumers and is quite easy.
TURN OFF THE DAMN LIGHTS WHEN YOU’RE NOT USING THEM! :)
Lots of other little things can help a lot:
Get a programmable thermostat and learn how to use it, and adjust the
temperature a bit.
Replace incandescent light bulbs with compact florescent bulbs. Note: They don’t
seem to work well in ceiling fans, based on my experience.
Use the clothesline instead of the dryer—or even better—have your KIDS use the
clothesline!
Get more outdoor hobbies.
Grill out more often.
Tweak the thermostat down on your hot water heater.
Use a push mower instead of a riding mower (reduced my gas consumption by
40%).
Carpool.
Walk or bike when possible. It saves energy and is good for your health!
Winterize your home now. When it’s cold and nasty out, you won’t feel like
doing it!
Invest in your own personal cogeneration projects if possible. A $10,000
investment in 1997 would have the same overall equivalent of about $15,000
investment today.
I know they’re just little things, but the best way to eat an elephant is one bite at a time.
LOCAL / ELECTRICAL CO-OPERATIVE POLICY
There are many possibilities for this angle.
Local public relations have the capability to have a high impact on consumption with a minimal investment. Talk to your local 4-H, Boy and Girl Scouts, Boys and Girls Clubs, religious groups, social groups and schools about such things. Talk to them about how electricity, gas and liquid fuels are made and how they can individually help minimize the usage of such resources, reducing the cost and helping to ensure they are there for the next generation.
****MAJOR NOTE: Don’t wait for a “professional” to step up to the plate to talk to these groups. Conservation is simple. You don’t need a “professional”, an “expert in the field” or have the approval of local, state or federal bureaucrats or politicians to tell the truth. Speak truth to power and be fearless.
You’ll get asked a lot of questions that you don’t know the answer to. Don’t be afraid to tell them you don’t know the answer, but take notes on the questions, research them and get back to them in a reasonable amount of time. You will convey reliable information, show them that you care and build up their confidence in “The Plan”.
Here is an idea I’ve been working on:
Convince your local government to set back a fund for energy. A few thousand would be nice, a few hundred thousand would be better!
The basic concept is that for every dollar citizens spend on alternative home energy (wind solar, fuel cells, etc) they will spend an equivalent amount on energy conservation or alternative energy production for the public good.
Think of this:
If an individual invests $5000 on installing solar cells, the municipality spends $5000 on something such as LED (light emitting diode) traffic lights or white LED street lights. LED lights use less power (a quarter to half as much, depending on the sources cited), require less maintenance (less time spent by employees, reducing time in hazardous locations) and have a lower failure rate then standard bulbs. The savings offset in workman compensation should easily pay for the investment in a fairly small time frame.
If some folks invest $20,000 into alternative energy, the municipal electric company can replace the bar type containment heaters in their substations with Positive Temperature Coefficient heaters which use 1/3 the power.
If a group of individuals invest $100,000 on wind and solar, the municipality can replace a couple of conventional vehicles with alternative vehicles.
If millions are invested, an electrical co-operative can install their own wind generators.
These steps may be the best way to have an immediate impact on the energy and economic problems we are currently facing.
Most people can’t get the grasp of graphs and while I didn’t really want to include it, it is fairly necessary for this discussion.
Don’t worry though! I’ll give a quick explanation of it!
What the graph shows is that depending on how you look at it, to make the equivalent of $1000 from 1997, you would have had to make between $1250 and $1700 in 2007 to have the same amount of buying power.
It's a lot more complicated than just that, but the basic concept is correct.
Here’s another way to look at it:
Theoretically, if it cost you $1000 to power your household in 1997, it would have cost between $1250 and $1700 in 2007.
I personally think the numbers are quite conservative and the causes for the increase are very debatable (peak oil, general inflation, dropping value of the dollar, etc), but I think this gets the point across.
I haven’t looked at the numbers for 2008, but I think we’re going to be in for a shock.
But what does this mean for the Pickens Plan?
*****
One possible meaning is that if it takes 2 years to get the funding together and implement the plan, every $1000 that is invested may actually have $870 in buying power (or even less) by the time it’s ready to be spent. A big loss is taken even before any income starts coming in.
It could also be looked at like this: If an initial investment of $400 billion was made today and it took two years for land purchases, environmental impact studies, transmission agreements, easement grants, congressional hearings (Yes, I think there will be some. Almost would bet on it!), and all the other jumping through hoops that is required for such an endeavor, you would actually end up needing $452 billion---that’s about 13 extra cents for every dollar invested, due to inflation.
Immediate, tangible investment will help to protect the investors and consumers alike.
So how do we minimize or even avoid this problem? I personally don’t like the idea of additional tax credits. Bean counters tend to view tax credits as somehting that needs to be compensated for by raising taxes on others. There are more than enough existing credits to offset a large part of the cost.
The people who pump large sums of money into such projects should look at it as a long term investment, and investments are basically gambling. If you can’t afford to lose, don’t bet. Most of us don’t have the liquidity to risk in the first place.
PERSONAL POLICY
One idea for the little dogs (me included) is to start with conservation.
Most conservation doesn’t cost us a dime, can actually put a couple of dimes back in the pockets of the consumers and is quite easy.
TURN OFF THE DAMN LIGHTS WHEN YOU’RE NOT USING THEM! :)
Lots of other little things can help a lot:
Get a programmable thermostat and learn how to use it, and adjust the
temperature a bit.
Replace incandescent light bulbs with compact florescent bulbs. Note: They don’t
seem to work well in ceiling fans, based on my experience.
Use the clothesline instead of the dryer—or even better—have your KIDS use the
clothesline!
Get more outdoor hobbies.
Grill out more often.
Tweak the thermostat down on your hot water heater.
Use a push mower instead of a riding mower (reduced my gas consumption by
40%).
Carpool.
Walk or bike when possible. It saves energy and is good for your health!
Winterize your home now. When it’s cold and nasty out, you won’t feel like
doing it!
Invest in your own personal cogeneration projects if possible. A $10,000
investment in 1997 would have the same overall equivalent of about $15,000
investment today.
I know they’re just little things, but the best way to eat an elephant is one bite at a time.
LOCAL / ELECTRICAL CO-OPERATIVE POLICY
There are many possibilities for this angle.
Local public relations have the capability to have a high impact on consumption with a minimal investment. Talk to your local 4-H, Boy and Girl Scouts, Boys and Girls Clubs, religious groups, social groups and schools about such things. Talk to them about how electricity, gas and liquid fuels are made and how they can individually help minimize the usage of such resources, reducing the cost and helping to ensure they are there for the next generation.
****MAJOR NOTE: Don’t wait for a “professional” to step up to the plate to talk to these groups. Conservation is simple. You don’t need a “professional”, an “expert in the field” or have the approval of local, state or federal bureaucrats or politicians to tell the truth. Speak truth to power and be fearless.
You’ll get asked a lot of questions that you don’t know the answer to. Don’t be afraid to tell them you don’t know the answer, but take notes on the questions, research them and get back to them in a reasonable amount of time. You will convey reliable information, show them that you care and build up their confidence in “The Plan”.
Here is an idea I’ve been working on:
Convince your local government to set back a fund for energy. A few thousand would be nice, a few hundred thousand would be better!
The basic concept is that for every dollar citizens spend on alternative home energy (wind solar, fuel cells, etc) they will spend an equivalent amount on energy conservation or alternative energy production for the public good.
Think of this:
If an individual invests $5000 on installing solar cells, the municipality spends $5000 on something such as LED (light emitting diode) traffic lights or white LED street lights. LED lights use less power (a quarter to half as much, depending on the sources cited), require less maintenance (less time spent by employees, reducing time in hazardous locations) and have a lower failure rate then standard bulbs. The savings offset in workman compensation should easily pay for the investment in a fairly small time frame.
If some folks invest $20,000 into alternative energy, the municipal electric company can replace the bar type containment heaters in their substations with Positive Temperature Coefficient heaters which use 1/3 the power.
If a group of individuals invest $100,000 on wind and solar, the municipality can replace a couple of conventional vehicles with alternative vehicles.
If millions are invested, an electrical co-operative can install their own wind generators.
These steps may be the best way to have an immediate impact on the energy and economic problems we are currently facing.
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