Joel Kotkin in Fargo Tomorrow!

Don't forget, he'll be at the Fargodome bright and early and cold in the morning.  Forecast low for Fargo tomorrow morning?  Minus 18 F.

An Oldie But a Goodie

While Googling myself, which I do frequently (not that there's anything wrong with that), I came across this media mention of the report we did back in October 2009 on future energy requirements in the state.  "Minnesota's Office of Energy Security predicts additional power needs by 2025."  Cassandra or Chicken Little?  Only time will tell.

Update on "Tiered Natural Gas Prices" Story

The Star Tribune reporter, Kara McGuire, who did last Sunday's story on the natural gas company's tiered pricing (inverted block rates), updates the story on her blog, KABLOG, which is much more cleverly named than my effort.  She includes helpful tips on saving energy and shows where to file comments with the Public Utilities Commission.

"Tiered Pricing" Story Finally Posted Online

The Minneapolis Star Tribune finally posted online their Sunday story on the "tiered pricing" structure of the local natural gas utility.

See my Sunday, January 9th post for a discussion of this use of "inverted block rates".  I have been involved in utility rate regulation for more than 15 years.  This is a rare occasion where the public's imagination seems to be engaged on a usually esoteric subject.  The last time I checked, the story had 181 comments on the paper's website.

Update:  Now 189 comments on the Star Tribune website for the story.

Compliance with Renewable Energy Objectives

We put out a new report today on Minnesota's compliance with the state's renewable energy mandates.  For better or worse, we are on track for "25 by 25".

"Inverted Block Rate" Pricing Discussed in Today's Star Tribune

Under a headline likely to rival "Worthwhile Canadian Initiative", the Minneapolis Star Tribune discusses "Tiered Natural Gas Pricing".  The local natural gas company has started a program where it charges higher prices based on how much gas a customer uses in a given month.  (The link takes the reader to a chart with the pricing formula.  The full story is not yet available online.  I'll post an updated link when it's up.)

The analogy I've been using to describe "Inverted Block Rate" pricing goes as follows:  the driver of a Toyota Prius would be charged $2 a gallon for gasoline but the Hummer owner would have to pay $5 per gallon, based on the MPG rating of each vehicle.  The idea is to reward the "high efficiency" vehicle and punish the "gas guzzler".  Forget the idea of volume pricing, market set prices, or the fact that the Hummer owner will pay more for gas because she uses more of the product, anyway.

Lately, I've been thinking that a different analogy gets closer to the facts:  say you charge a motorcyclist $2 per gallon, but the minivan owner $5 per gallon.  The motorcycle typically sits in the garage half of the year (in this climate) and the other half it is typically used just on weekends.  The mom with the minivan has her vehicle in motion all the time, running errands, commuting, and taking her kids hither and yon.

Inverted block rate pricing does not reward efficiency, it only punishes usage.  So if you have made the unfortunate decision to have a family, state energy policy says you must be punished with higher prices for your poor lifestyle choice.  You could have the Prius of hot water heaters, the Insight of furnaces, and the Volt of clothes dryers, but if you have a large family, you will pay more for natural gas, simply because you use these appliances more intensely.  How is this family supposed to "cut back"?  This policy needs a rethink.

"Smart Growth" Dream Realized: in China

The dream of every Smart Growth advocate has been realized by the city authorities in Beijing:  they are limiting the number of new cars that can be registered.  Nirvana awaits!

Full story here:  on Just-Auto's site.  For those keeping score at home Smart Growth does not equal Smart Grid.  Smart Grid we like.  Smart Growth, not so much.

(Via NRO)

Genius Defined

Forget Edison, this guy in Germany is the  real genius.  Thomas Edison may have invented the light bulb, but Siegfried Rotthaeuser, German entrepreneur, figured out how to get around the European Union ban on Edison's bulb by rebranding them as heating devices.

(Via Instapundit)

This Time it's For Real: American Decline

Foreign Policy carries a great piece by Gideon Rachman on American Decline.  It turns out that China is the culprit, this time.

(Via Hot Air blog)

Government Caused Famine

Not too strong a phrase to describe the ongoing and under-reported story in California's Central Valley.  An Investors Business Daily editorial likens the man-made disaster in one of America's richest agricultural regions to the Ukraine in the 1930's.

(Via Hot Air Blog)