Sunday, May 25, 2008

SAR #8146

Bombing Iran is not a viable energy program.

Connections: If Americans traveled 4.3% less this March than last, why does the price of oil keep going up? Because crude oil has 20 gallons of gasoline but only 10 of diesel, and the rest of the world wants the diesel. They sell the US their excess gasoline at a discount - probably not much above cost. That is why inventories are high, lines short, and diesel more expensive than gasoline.

Watching Your Step: Police insist that law-abiding citizens have nothing to fear.

Blackmail: The US State Department says that countries which sign the treaty banning cluster bombs will no longer be eligible to receive US humanitarian assistance. The US did not bother attending a conference of over 100 nations seeking to outlaw the munition, notorious for killing children for years after they've been randomly scattered about.

Dark Ages? Soaring oil prices are bringing out the doomsters in force. Do not panic. This is not the end of the world. It is simply the end of the world as we know it.

Click Your Heels? We may not be classic 'immovable objects', but despite the clear need for immediate, fundamental changes needed to preserve a habitable world and to maintain our urban civilization, we continue to seek salvation in little things. We seek the minor tweak that will save us.

Investergatons: Greed, fraud, financial bubbles, market tops and criminal investigations follow closely one after the other. We're in the investigation phase; just ask JPMorgan, Moodys, S&P and Fitch. Someone should point out to the investigators that history suggests little comes from the effort, but that repayment is certain; ask Elliot.

Nothing to Sneeze At: Kimberly-Clark announcing it will hike consumer prices by 6% to 8% percent in the third quarter of this year. Repeat after me: "Sub-prime is contained, inflation is under control."

Bad Moon Rising: S&P reports that Alt-A mortgages issued 2005-7 are defaulting at a 17% rate, matching subprime back when this was all contained to subprime. And the subprimes have now reached a 37% default rate. The Fed chimed in with a report that prime mortgage defaults are also on the rise.

Nice Tan: Google, Chevron, and Goldman Sachs have joined in investing in a solar energy array in the Mojave desert that uses 550,000 mirrors to make steam to turn turbines to generate electricity. They're looking ahead to 2020 when their cost will fall below that of coal-fired plants - assuming coal-fired plants aren't all bulldozed under before then..

Silly Is As Silly Says: The National Association of Realtors says "more areas are showing gains, and a reversal in mortgage policy means the market is better positioned for a turnaround." Actually, sales have dropped 18% and prices are down 8% from last year. Real estate is all about location, and if you are located in a real estate office...

Trust Me, Once More: The International Energy Agency says this time they've got it right. For a couple of years now as demand rose faster than supply, the IEA kept assuring that the supply was and would be adequate. Now it admits it might have been hasty and need to survey production and reserve data from oil producing countries in order to make a forecast. Why now, not then?

Porn O'Graph: The cupboard is not bare: houses.

1 comment:

Yehuda Draiman said...

PAY AS YOU SAVE Energy conservation financing program

The program will allow participants to purchase and install energy efficient products
And equipment (or “measures”), with no up-front cost. These measures can include modifications to lighting, heating, cooling, other energy efficient electric, gas and non-electric equipment and systems. Major measures promoted: lighting, weatherization, water saving devices and clock thermostats in both electric and non-electrically heated homes and businesses. We should also accept a variety of measures (provided they pass the Program qualification. This can apply to any conservation method, renewable energy systems (solar, photovoltaic, geothermal, wind), electric, gas and water.
Primary goals should be lighting retrofits, motor retrofit, HVAC efficiency, insulation and attic fans, windows, energy efficient appliances, water conservation equipment and techniques, utilization of gray water, landscaping for energy conservation.
HOW DO WE PROPOSE TO FINANCE THE COSTS: There is no up-front cost to the participants? Instead, the utility pays all initial costs associated with the purchase and installation of approved measures. (We must keep the costs competitive and reasonable)
Then, an Energy Finance Charge (EFC) is calculated and added to the ember’s/customers monthly utility bill until all costs are repaid.
A fund will be set up and the payments will reimburse the fund monthly.
Calculating the Term: Financing charge amounts itemized on the monthly utility bill should be based on two thirds of the estimated savings that will come from the measures installed.
This way, the monthly charge should be designed to be less than the savings realized on each bill once the new measures are installed and implemented.
If customers wish to pay off their Financing charges balances quicker (which in some cases they do), up to one hundred percent (100%) of the savings can be used to form the basis of their monthly Finance charge amount.
Payments Linked to Meter (not customer): The payments are always linked to the service location, not to the customer. So if an Energy Financing Charge (EFC) participant moves or sells, the new owner continues making the payments for the duration of the payment term, unless the previous owner/tenant chooses to pay off the obligation before selling or moving.
Also, the payments include a small percentage risk mitigation adder (5%) to protect the utility from bad debt risks associated with some portion of participants’ failure to pay.
To protect the utilities and their broader membership/customer base against other potential risks, three key requirements are included in the EFC program for those that choose to participate:
• Maintenance: All measures must be maintained in place and in good working order during the entire repayment period – the utility will help arrange for repairs, but any associated costs will be added to the EFC on the utility bill, or will extend the payment term to ensure recovery of these additional charges.
• Disconnection: All payments must be made on time – EFC charges are treated like other charges on the utility bill that are subject to service disconnection for non-payment.
• Disclosure: If the home or business is sold or rented, disclosure of the remaining monthly EFC payment amounts must be made to the potential purchaser or tenant (since they will be taking over the remaining payment obligation), unless the current owner chooses to pay the balance off before the sale or rental.
This proposed program – managed efficiently, will advance and expedite our reduction in the use of energy and resources in an expedited manner and reduce our dependence on foreign energy sources.
It will also promote an economic boom in the geographical areas where such program is implemented.
Compiled by: Jay Draiman, Energy analyst – 5/25/2008.