{"id":519,"date":"2012-11-13T08:31:14","date_gmt":"2012-11-13T14:31:14","guid":{"rendered":"https:\/\/allenergyconsulting.com\/blog\/?p=519"},"modified":"2012-11-13T09:48:19","modified_gmt":"2012-11-13T15:48:19","slug":"road-tax-electric-vehicle-issue-de-regulation-natural-gas-gasoline-prices","status":"publish","type":"post","link":"https:\/\/allenergyconsulting.com\/blog\/2012\/11\/13\/road-tax-electric-vehicle-issue-de-regulation-natural-gas-gasoline-prices\/","title":{"rendered":"Road Tax (Electric Vehicle Issue), De-regulation (Natural Gas), & Gasoline prices"},"content":{"rendered":"

Given my fortunate position\u00a0of being\u00a0so busy that I can\u2019t blog as much as I want; I am trying a new format for blogging.\u00a0 “Quick” summaries of blogworthy articles.<\/span><\/span><\/p>\n

I have been telling people to look, re-examine the economics for non-traditional gasoline\/diesel vehicles and make sure it includes some sort of recovery for the loss of tax revenue.\u00a0 Many show the calculation for comparing electric vehicles, assuming the gain from tax revenues will be there forever.\u00a0 I am surprised it is coming to the forefront this early with penetration of alternative vehicles still in the low single digits.\u00a0 <\/span><\/span>Article on electric and hybrid vehicles draining dollars from road tax<\/span><\/a><\/p>\n

My neighbors always ask about who they should choose for their energy provider.\u00a0\u00a0 In many markets, the ability to choose a provider for natural gas and electric generation is now available.\u00a0\u00a0 The system is still not fully de-regulated given the providers still have regulated rates of distribution which will be paid to the incumbent utility, commonly called non-by-passable cost\/rates\/riders.\u00a0 In theory, the open choice concept will reduce the inefficiencies in a regulated company by offering a form of competition.\u00a0\u00a0 By doing so the consumer in the long run should save.\u00a0\u00a0<\/span><\/span><\/p>\n

However, like most things involving customer decisions, it is more complicated than that.\u00a0\u00a0 Many things influence the decision of the consumer and as the article alludes to the key thing is knowledge.\u00a0 Knowledge is not just information but the ability to understand the information to make informed decision.\u00a0\u00a0 The consumer has significant amount of information available to them via the internet.\u00a0 I would suspect information is not the issue, it is the consumer who does not have the ability to really convert the information to knowledge, particularly given their decision will only impact them less than their monthly cell phone bill.\u00a0<\/span><\/span><\/p>\n

\u00a0 As I point out to my neighbors, I don\u2019t have time to analyze each of their choice for them, but I do suggest not doing anything about their gas bill.\u00a0 \u00a0Why would I do that?\u00a0\u00a0 Natural gas really offers no competition in order to weed out inefficiencies that a utility may build up.\u00a0\u00a0 In electricity, there are many opportunities to make inefficient decision making.\u00a0 An example of poor decisions is building a coal plant assuming natural gas prices will be greater than $8\/mmbtu.\u00a0\u00a0 Natural gas is natural gas.\u00a0 Commodity risk is limited through hedges.\u00a0\u00a0 The pipeline and delivery cost has to be recovered through the regulated rate portion which all providers must pay.\u00a0 The ability for the gas utility to make a poor capital allocation is limited compared to electricity.\u00a0 Alternatively a provider in natural gas can only give you so much of their margin before they are equal to the competing regulated utility.\u00a0\u00a0 <\/span><\/span>Article demonstrating natural gas choice as a failure for the consumer<\/span><\/a><\/p>\n

Word of caution for the administration \u2013 don\u2019t take credit for the lower gasoline prices.\u00a0\u00a0 Each year around this time the administration takes a look at the gasoline prices and starts taking credit for lower prices.\u00a0\u00a0 However the market is seasonal; \u00a0prices typically always come off in the fall and into the winter time period when \u00a0people drive less!\u00a0 <\/span><\/span>Article falling gasoline prices<\/span><\/a><\/p>\n

We positively and evocatively challenge the current thinking involving any aspect of energy use. We look for projects that offer meaningful, transformative, with impactful outcome to the marketplace or society.\u00a0 Please consider and contact All Energy Consulting for your consulting needs.<\/span><\/span><\/p>\n

Your Energy Consultant,<\/span><\/span><\/p>\n

 <\/p>\n

David K. Bellman<\/span><\/a><\/p>\n

614-356-0484<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Given my fortunate position\u00a0of being\u00a0so busy that I can\u2019t blog as much as I want; I am trying a new format for blogging.\u00a0 “Quick” summaries of blogworthy articles. I have been telling people to look, re-examine the economics for non-traditional gasoline\/diesel vehicles and make sure it includes some sort of recovery for the loss of […]<\/p>\n","protected":false},"author":1,"featured_media":267,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,3,26,6],"tags":[126,180,27,14,369,179],"class_list":["post-519","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-insights","category-natural-gas","category-oil-petroleum-products","category-power","tag-deregulation","tag-electric-vehicle","tag-gasoline","tag-natural-gas-2","tag-power","tag-tax"],"_links":{"self":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/comments?post=519"}],"version-history":[{"count":6,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/519\/revisions"}],"predecessor-version":[{"id":521,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/posts\/519\/revisions\/521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/media\/267"}],"wp:attachment":[{"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/media?parent=519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/categories?post=519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/allenergyconsulting.com\/blog\/wp-json\/wp\/v2\/tags?post=519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}