[Mpls] Some things an inquiring mind would like to know

[LISCHEID ,RONALD]

Today, posted to the list, was an article several list members have already discussed, about the plans by XCel to convert current coal-fired plants to natural gas.   I don't pretend to be an environmentalist or an economist, but I would like to ask some questions from the perspective of a consumer.   I am assuming that this natural gas is similar to the natural gas that Reliant supplies to my home to supply heat, hot water and cooking, correct?   I took enough college level economics to understand the basics of supply and demand.   Suddenly we have a large commercial customer switch power sources from one that is not in competition with consumer needs to one that competes with consumer needs heads-on.  One question that comes to mind is what "is being done to the supply side of the equation to make sure that I can continue to operate my furnace in the winter" (something that I have selfishly become accustomed to) ?   I remember the winter of 2000-2001 and my gas bill.  That winter it cost over $1000 to heat my humble little home.  We were told that the increase in price was due to an increase in demand without a corresponding increase in supply.  At the same time, the then-members of the city council also approved an increase in the 'city franchise fee' [aka: city natural gas tax] (about double, if I remember correctly) which is not a fixed tax per unit of energy purchased but a percentage of the consumers gas bill.  So during that winter, the consumer price roughly doubled, the 'city franchise fee' nearly doubles and the net result is a four-fold increase on that line item of the city's income side of their ledger.  Will XCel get an exemption from this 'city franchise fee' or will there be a slight 'silver lining' from this conversion via the increased fees that the city will be the beneficiary?   Coal, electricity and natural gas are commodities traded on the open market like wheat and coal.  With electricity and natural gas, there is also a 'distribution system' part of the equation.  This summer, if I want to run my air conditioner because it is really hot and XCel is experiencing brownouts because everyone else in town shares my 'original idea', I probably could go out on the open market and purchase some surplus electricity like XCel does.  The problem that I would experience is how to get my 'truckload of electrons' delivered to my house so that I could selfishly run my air conditioner 24 hours per day while my neighbors suffer. (remember, I live in the MSP flight paths and can't have my windows open in the summer!)  In the past, XCel was able to go out on the open market and purchase their own coal right from the mine.  They could load it into railroad cars that they rented or bring it up the river on barges that they rented.  XCel had options in the past to purchase energy on the open market and provide the means of distribution.  Will XCel also be their own agent for the purchase and delivery of their new source of energy?   If XCel is using the same supply source and same distribution system that you and I use from Reliant and the demand goes up and the supply stays the same or declines, who gets the 'juice'?   If we have to ration, will we all suffer equally?  Does anyone know what you call a natural gas 'brown-out'?   I doubt that many would suggest to 'just shut down the electric company' to increase the supply of natural gas for consumers.   These are just some silly questions that my 'inquiring mind' wants to know the answers to.  I hope that minds sharper than mine are also asking these questions and coming up with good answers in the next couple of years while the conversion is being made.    Ron Lischeid Windom (on the edge of the Minneapolis wilderness but in the same neighborhood as Reliant)