In response to the response to my first comment:
http://blog.recycled-energy.com/2008/07/07/the-hare-and-the-tortoise/
http://jdegrazia.posterous.com/inflation-comment
That does make sense. Although I'm not 100% sure what you mean by "shifting resources around."
Basically, you're saying that the government's fear of higher prices means that utilities will make less money and thus invest less in new generation and T&D infrastructure. And, while it's not necessarily a bad thing to keep bureaucratic, status quo loving utilities from deciding the best ways to deal with increasing demand, the wires (and plants?) that the utility investment dollars would build could be helpful in the creation of an infrastructure better capable of integrating distributed generation.
Did I read correctly?
If so, do we need the utilities to help do (or enable) the shifting?
More importantly, however, what is the shifting and how do we make it happen (with or without the utilities' cash and/or blessing)?
In response to:
http://blog.recycled-energy.com/2008/07/07/the-hare-and-the-tortoise/Any idea how much this costs now and how much it might cost 10 years from now if things continue?I ask because I wonder at what point this situation starts to affect government spending, national debt, and inflation significantly, affect them to a degree that it becomes glaringly noticeable.Here's how I understand things (I realize that I don't know nearly enough to be sure about this, but, now that I've added this disclaimer, I feel ok throwing it out there):If the cost to produce power is higher than the price consumers pay, then the government is subsidizing, covering the portion of the cost it's afraid to let consumers cover themselves. In theory, the government is using tax revenues to pay for that subsidy. But, what with the war, other spending black holes, and politicians' fear of raising taxes, tax revenues can't cover everything, and the government is borrowing money to pay for the subsidies. And once the borrowing gets out of control, the government has to print more money to pay off its debts. Printing more money, of course, means inflation, which means that dollars are less scarce and thus less valuable, and that's a bummer.So, again, my questions are: How much money are these subsidies costing? And might it, at some point anyway, be enough that it'll start getting attention enough to hold politicians accountable for cowardly pandering to short term interests?