Hmmm... so lets see. Bloomberg today shows that the spot price for electricity is roughly $100/MW-hr ($100/MW-hr is equal to $.10/kW-hr). TVA can usually sell power around $.075-.08/kW-hr to the local distributors and utilities.
Bloomberg.com: Energy Prices
Now you come in and charge KUB, EPB, or whoever your local utility is $.15/kW-hr to buy unreliable power that costs anywhere from 50%-100% more than what they could pay either directly from TVA or on the open market?
My question is, who is making up the difference for that extra 5 cents/kW-hr that you are paying? Are the rest of the utility customers going to essentially pay the difference? Will the gov't/TVA pay the difference? In either case, you have a redistribution of wealth based on one group selling power above the market price.
OK, let's go on. Lets say it is a hot day... kind of like today, for example. Energy demand is going to be high (all those air conditioners have to be running). You may then have some power plants that may have to derate and reduce production because of warm water from heat exchange process flowing into the river (EPA mandate). So not only are you going to have high demand, but you are also going to have a decrease in potential energy production. What happens if the wind isn't blowing enough to satisfy the demands of this subdivision that this wind farm is supposed to be generating for? Are you telling me that under these conditions, that you would just venture into the spot energy market and purchase power in that manner? You'll have to pay a transmission cost/mark up to EPB/KUB/local distributor, they in turn will have to purchase their power from a wholesale energy producer (TVA for example) who will have additional mark ups/costs associated with that exchange. Then, TVA may have had to purchase power from AEP or Duke or whoever if they have to compensate for their derated fossil/nuke plants. And of course, you will have to pay the costs associated with the energy exchange between TVA and the other wholesalers. And finally, you will also have to pay market price on the 30 minute or spot market for electricity.
Let's see how that works out... :crazy: