The article from the Star Advertiser "Power Struggle Plays Out" talks about the regulation challenge for a decentralized energy model.
According to Hawaii's electricity regulation, when the amount of photovoltaic (PV) on a circuit reaches 15 percent of the total capacity, Hawaiian Electric Company (HECO) requires the homeowner or business seeking to install the system to conduct an interconnection study. The specter of having to do the costly study kills new projects. This study aims to determine how any particular project exceeding the threshold will affect other customers on the circuit.
According to PV contractors, there is room to double the number of projects but for this regulation restriction.
15 percent trigger point has been reached or exceeded on 11 of the island's 465 circuits, 18 of the 140 on the Big Island, and 3 of the 90 on Maui.
15 percent is also used by utilities in California. This level is recommended by the Institute of Electricity and Electronic Engineers. It is argued that this regulation is needed to protect the integrity of the grid ans alternative energy sources such as solar power are intermittent in nature. This can have a negative impact on HECO's effort to balance the load on its grid.
http://www.staradvertiser.com/business/20110417__Power_struggle_plays_out.html
quinta-feira, 21 de abril de 2011
Regulation and Alternative Energy Sources
Ethical Dilemmas
These are interesting tools we have been taught to resolve ethical dilemmas - competing values - in public administration.
First, consider the virtue, duties, and consequences of what is at stake.
Second, make a decision and analyse it through the lenses of universality, reversibility, and transparency.
First, consider the virtue, duties, and consequences of what is at stake.
Second, make a decision and analyse it through the lenses of universality, reversibility, and transparency.
domingo, 17 de abril de 2011
Federal Budget Battle in the US
“In Budgeting Battled: Tax and Spending Myths and Realities” the New York Times editorial talks about the stalemate of federal budget debate.
The Republicans want to cut US$ 4.3 trillion of government spendings over the next ten years and US$ 4.2 trillion of tax revenues.
NYT agrees that government spendings have to be controlled but slashing vital social services just to support more tax cuts means bad policy and bad economics.
Reagan promised that tax cuts would spur economic growth and later pay for themselves. In the face of growing deficit, he was forced to raise taxes to close the gap.
Clinton disproved the notion that higher taxes would inevitably stifle economic growth or cost politicians their jobs. During his mandate, the economy was strong and stock market surged. In 1997, the administration decided on tax cuts but enacted higher tax rates on the wealthy.
Bush administration did not collect US$ 1.65 trillion through tax cuts. The economic recovery of Bush years was extraordinarily weak by historical standards.
Obama’s proposed budget for fiscal year 2012 is a mix of tax increases and tax cuts. The problems of this proposal are the clarification of the new sources of revenue, defense cuts, spendings on health care and on entitlements.
NYT editorial agrees that raising income taxes should start with rich Americans, who have been the biggest beneficiaries of Bush-era tax cuts. This measure will not dig the country out of its hole, though. Middle class has also to pay higher taxes as this is the only way for i) keeping needed services, ii) tackle deficit, iii) slow borrowing, and iv) rise interest payments. Other source of tax revenue will be i) energy ii) financial transaction and iii) value-added.
Obama also has to change political debate. He has to abolish the tax-cuts-above-all ideology. He has to make the case for tax increases based on reality.
http://www.nytimes.com/2011/04/13/opinion/13wed1.html?partner=rss&emc=rss
The Republicans want to cut US$ 4.3 trillion of government spendings over the next ten years and US$ 4.2 trillion of tax revenues.
NYT agrees that government spendings have to be controlled but slashing vital social services just to support more tax cuts means bad policy and bad economics.
Reagan promised that tax cuts would spur economic growth and later pay for themselves. In the face of growing deficit, he was forced to raise taxes to close the gap.
Clinton disproved the notion that higher taxes would inevitably stifle economic growth or cost politicians their jobs. During his mandate, the economy was strong and stock market surged. In 1997, the administration decided on tax cuts but enacted higher tax rates on the wealthy.
Bush administration did not collect US$ 1.65 trillion through tax cuts. The economic recovery of Bush years was extraordinarily weak by historical standards.
Obama’s proposed budget for fiscal year 2012 is a mix of tax increases and tax cuts. The problems of this proposal are the clarification of the new sources of revenue, defense cuts, spendings on health care and on entitlements.
NYT editorial agrees that raising income taxes should start with rich Americans, who have been the biggest beneficiaries of Bush-era tax cuts. This measure will not dig the country out of its hole, though. Middle class has also to pay higher taxes as this is the only way for i) keeping needed services, ii) tackle deficit, iii) slow borrowing, and iv) rise interest payments. Other source of tax revenue will be i) energy ii) financial transaction and iii) value-added.
Obama also has to change political debate. He has to abolish the tax-cuts-above-all ideology. He has to make the case for tax increases based on reality.
http://www.nytimes.com/2011/04/13/opinion/13wed1.html?partner=rss&emc=rss
Simplifying Sales Tax
What is Streamlined Sales Tax?
This is an agreement to minimize costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It also encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. This agreement levels the playing field by forcing “brick-and-mortar” stores and remore sellers to operate under the same rules. Finally, it ensures that all retailers can conduct their business in a fair, competitive environment.
This system was created by the National Governor’s Association (NGA) and the National Conference of State Legislative (NCSL) in 1999.
It simplifies sales tax administration by tapping into more efficient administrative procedures and emerging technologies. This process leads to i) uniform tax definitions ii) uniform and simpler exemption administrative iii) rate simplification iv) state-level administration of all sales tax v) uniform sourcing.
Business that use Streamlined are immune from audit liability for the sales they process through the software. In addition, states pay the costs of this service for any business that does not have a physical presence in the state.
The innovations of Streamlined are i) business no longer have to wonder how one states’ definition differs from another state ii) they only need to know whether the produc or service they sell is taxable or exempt.
The reduction of business administrative expenses happen through i) uniform definitions ii) rate simplification iii) rate and boundary databases iv) state level tax administration v) uniform sourcing rules vi) uniform exemption administration vii) uniform audit procedures and viii) state funding.
http://www.streamlinedsalestax.org/index.php?page=faqs
This is an agreement to minimize costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It also encourages “remote sellers” selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states. This agreement levels the playing field by forcing “brick-and-mortar” stores and remore sellers to operate under the same rules. Finally, it ensures that all retailers can conduct their business in a fair, competitive environment.
This system was created by the National Governor’s Association (NGA) and the National Conference of State Legislative (NCSL) in 1999.
It simplifies sales tax administration by tapping into more efficient administrative procedures and emerging technologies. This process leads to i) uniform tax definitions ii) uniform and simpler exemption administrative iii) rate simplification iv) state-level administration of all sales tax v) uniform sourcing.
Business that use Streamlined are immune from audit liability for the sales they process through the software. In addition, states pay the costs of this service for any business that does not have a physical presence in the state.
The innovations of Streamlined are i) business no longer have to wonder how one states’ definition differs from another state ii) they only need to know whether the produc or service they sell is taxable or exempt.
The reduction of business administrative expenses happen through i) uniform definitions ii) rate simplification iii) rate and boundary databases iv) state level tax administration v) uniform sourcing rules vi) uniform exemption administration vii) uniform audit procedures and viii) state funding.
http://www.streamlinedsalestax.org/index.php?page=faqs
Energy Use
In “Using Energy More Efficiently” Amory Lovins from Rocky Mountain Institute argues that market forces, not regulation, will play the key role in promoting more efficient energy consumption.
Companies and markets outpace policymakers in the race for solutions. However, executives often overlook the opportunities for saving money with energy because it is only 1-2% of the cost of doing business. But saving energy is among the highest-return investment anywhere and it goes straight to the bottom line.
It is necessary to create a culture of measurement, curiosity, and improvement by unleashing human creativity. Policies need to support “business logic”.
An example is the policy innovation for electricity sector. Decoupling the profits of utilities from their sales volume allows utilities to keep a small share of the savings they achieve for their customers. In other words, the utilities are rewarded for cutting your bill, not for selling you more energy.
“The private market is so dynamic that it will be an immensely more responsive, powerful, creative force that public policy, which continue to play catch-up”.
http://www.mckinseyquarterly.com/Using_energy_more_efficiently_An_interview_with_the_Rocky_Mountain_Institutes_Amory_Lovins_2164
Companies and markets outpace policymakers in the race for solutions. However, executives often overlook the opportunities for saving money with energy because it is only 1-2% of the cost of doing business. But saving energy is among the highest-return investment anywhere and it goes straight to the bottom line.
It is necessary to create a culture of measurement, curiosity, and improvement by unleashing human creativity. Policies need to support “business logic”.
An example is the policy innovation for electricity sector. Decoupling the profits of utilities from their sales volume allows utilities to keep a small share of the savings they achieve for their customers. In other words, the utilities are rewarded for cutting your bill, not for selling you more energy.
“The private market is so dynamic that it will be an immensely more responsive, powerful, creative force that public policy, which continue to play catch-up”.
http://www.mckinseyquarterly.com/Using_energy_more_efficiently_An_interview_with_the_Rocky_Mountain_Institutes_Amory_Lovins_2164
Rocky Mountain Institute
Rocky Mountain Institute is a think-tank that drives the efficient and restorative use of resources.
It is engaged in research that addresses pragmatic designs, practices, policies – not social theories and laboratory experiments.
It works on solution process – idea, strategy, and implementation – with different players in the private, public, and civil society sectors.
The guiding principles of the institute are the four principles of “Natural Capitalism” from Paul Hawken: i) productivity of natural resources ii) closed-loop production systems iii) service-oriented business model and iv) natural capital.
http://www.rmi.org/rmi/
It is engaged in research that addresses pragmatic designs, practices, policies – not social theories and laboratory experiments.
It works on solution process – idea, strategy, and implementation – with different players in the private, public, and civil society sectors.
The guiding principles of the institute are the four principles of “Natural Capitalism” from Paul Hawken: i) productivity of natural resources ii) closed-loop production systems iii) service-oriented business model and iv) natural capital.
http://www.rmi.org/rmi/
Smart grids in Singapore
The Energy Market Authority from Singapore has created the project “Intelligent Energy System” to deal with the challenges of building smart grids.
Smart grid is a network of computers and power infrastructure that monitor and manage energy usage.
The three components of a smart grid are i) advanced metering and communications infrastructure ii) demand response management systems and iii) management systems for distributed energy sources.
Energy management is done through the Internet since it helps delivering information that allows customers and market to make smarter choices.
The investment issues of smart grids are i) enhanced IT ii) communication infrastructure iii) cyber security iv) compatibility on both ends (customer and utility) and v) customer privacy.
http://www.ema.gov.sg/page/135/id:83/
Smart grid is a network of computers and power infrastructure that monitor and manage energy usage.
The three components of a smart grid are i) advanced metering and communications infrastructure ii) demand response management systems and iii) management systems for distributed energy sources.
Energy management is done through the Internet since it helps delivering information that allows customers and market to make smarter choices.
The investment issues of smart grids are i) enhanced IT ii) communication infrastructure iii) cyber security iv) compatibility on both ends (customer and utility) and v) customer privacy.
http://www.ema.gov.sg/page/135/id:83/
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