tag:blogger.com,1999:blog-168286652418122278.post6324032624374425559..comments2023-05-21T10:43:01.929-04:00Comments on G406: Duke Energy's Coal Gasification PlantEric Rasmusenhttp://www.blogger.com/profile/01609599580545475695noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-168286652418122278.post-83019878235490210902011-12-09T13:28:31.893-05:002011-12-09T13:28:31.893-05:00This was very careless of Duke Energy, but I still...This was very careless of Duke Energy, but I still think that MItch Daniels is right in making sure that the plant be completed. In my opinion, the long term benefits outweigh the costs.JNortonhttps://www.blogger.com/profile/10344889663906664664noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-21821286202523705302011-12-02T14:46:04.162-05:002011-12-02T14:46:04.162-05:00In this scenario, Duke energy is dealing with stro...In this scenario, Duke energy is dealing with strong mismanagement of funds and in an attempt to recover loses, they are trying to include the ballooned cost in the rate base. It is unjustified for the corporation to pawn this cost of onto the consumers due to Duke's inefficient allocation of funds.Kanishka Singhnoreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-80570599145904825442011-11-02T12:56:51.763-04:002011-11-02T12:56:51.763-04:00The only strong argument I can think of is that Du...The only strong argument I can think of is that Duke might be able to prove that they might face serious financial distress, if they were not allowed to put the entire amount in the rate base. This might be the only valid argument if the region is dependent on Duke delivering energy. If Duke can take the hit, however, there should be no reason to put the extra costs in the rate base.Maximilian Roeddernoreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-51170780100112898162011-10-31T12:27:28.050-04:002011-10-31T12:27:28.050-04:00I am not sure that management so much as cost itse...I am not sure that management so much as cost itself is to blame. This sounds like fairly advanced technology, and we need to think about our personal investment in the next generation. Cleaner energy is a really effective way to start undoing some of the harm we have already done to this planet.<br /><br />That being said, it is obviously not good when projects go over budget, but when I compare this project to Carmel's performing arts center or various roadway construction projects that have gone awfully wrong in the past few years both cost and schedule wise, I think this is a lesser burden because it offers us something substantial in return.Dariohttps://www.blogger.com/profile/13229084622988286277noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-19742062210301849162011-10-31T00:08:46.591-04:002011-10-31T00:08:46.591-04:00More incentive should be given to the managers of ...More incentive should be given to the managers of those public utilities. They are supposed to be compensated by good management and lowered cost and also punished by poor performance. Absent take-over threat is the low efficiency for government-owned companies. It has been proved and seen in China...Linkui WANGhttps://www.blogger.com/profile/01152140969632827722noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-91628224028881121812011-10-29T22:09:07.831-04:002011-10-29T22:09:07.831-04:00This is not a responsible behavior by Duke Energy....This is not a responsible behavior by Duke Energy. It is clearly their fault that they didn't hire a qualified outside construction manager to build the plant. They should be sorry about their incorrect estimation or wrong decision instead of putting the entire $2.9 billion in the rate base. Putting the costs in the rate base will definitely decrease its consumer surplus and benefits.Minho Choihttps://www.blogger.com/profile/05495175737307855441noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-79930847438849917182011-10-26T15:21:09.465-04:002011-10-26T15:21:09.465-04:00This is inexcusable by Duke energy. This extra cos...This is inexcusable by Duke energy. This extra cost will be passed on regardless of how it is paid. If prices increase there will still be losses for consumers. I just wonder what would be the most efficient way to pay it off. I feel like I would need more information to make a decision as to what the best move would be.Jordanhttps://www.blogger.com/profile/03701688070741176431noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-25945436246446407062011-10-25T20:53:03.264-04:002011-10-25T20:53:03.264-04:00The rate bate of 2.9 billion is the amount of capi...The rate bate of 2.9 billion is the amount of capital needed to complete this project. I do not think it is fair to pass on this much money to the consumers to have to pay for. Gas is already extremely expensive, and since heat is a necessity in the winter time, the consumers cannot avoid these extra costs. Duke should have to pay for their own mistake instead of making consumers pay.Michelle Lawlesshttps://www.blogger.com/profile/03268353627276815839noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-80668955267233036792011-10-24T16:04:55.360-04:002011-10-24T16:04:55.360-04:00Yes, I think that the justification is quite simpl...Yes, I think that the justification is quite simple on their part. They are a company who wishes to maximize their profits. Because they are essentially guaranteed a steady profit I feel like they don't really feel they have a responsibility to their customers as there is nowhere else for them to go to. Maybe more choice would change this?pinevincehttps://www.blogger.com/profile/13005333127299655558noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-2820903755728016872011-10-23T16:37:07.389-04:002011-10-23T16:37:07.389-04:00I can't think of any excuse that would allow D...I can't think of any excuse that would allow Duke to use the $2.9 figure as the rate base. Clearly Duke's management was looking to cut corners at the start of the project, and this resulted in a poor job and extra costs. This is a completely irresponsible way to manage a business, and it is not fair to use $2.9 as the rate base. I also agree with Sumner's comments about the irresponsibility of coal energy as the primary source of energy in the state of Indiana. It is not a sustainable source of energy that can be maintained for future generations.Danielle Coffinhttps://www.blogger.com/profile/02713492391521134072noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-19424655687284267522011-10-23T15:29:09.265-04:002011-10-23T15:29:09.265-04:00Matthew, that's the risk with rate-of-return r...Matthew, that's the risk with rate-of-return regulation-- that a firm will act carelessly because it thinks its costs are all covered. Here, it does look as if Duke may end up paying, though.Eric Rasmusenhttps://www.blogger.com/profile/01609599580545475695noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-79600852767710674842011-10-23T11:12:45.039-04:002011-10-23T11:12:45.039-04:00Duke energy has no right asking the customers to h...Duke energy has no right asking the customers to have to pay more because they failed to properly plan and forecast. Putting the extra million into the base rate will only push the price customers are paying through the roof. Its no excuse that hoosiers will be gaining jobs, and does not rectify Dukes poor planning.Rebeccahttps://www.blogger.com/profile/14478473068807264262noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-16528951796606933122011-10-22T12:57:31.904-04:002011-10-22T12:57:31.904-04:00It seems that Duke knew its power position, that H...It seems that Duke knew its power position, that Hoosiers need jobs, and given something goes wrong they knew they'd be bailed out.Matthew Kalinowskihttps://www.blogger.com/profile/05367513131087103704noreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-7156955532074145792011-10-22T12:15:06.229-04:002011-10-22T12:15:06.229-04:00How irresponsible of Duke to assume that their neg...How irresponsible of Duke to assume that their negligence and failure to hire a qualified construction manager could easily be passed on to the pocketbooks of their customer base? While Governor Daniels discussed the positive effect that the Edwardsport plant would have on Hoosier employment, I'm doubtful that consumers would ever recover the almost extra million dollars that are incurred within the project.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-168286652418122278.post-49571968896675587212011-10-22T11:11:32.703-04:002011-10-22T11:11:32.703-04:00I can think of no excuse which justifies the gover...I can think of no excuse which justifies the government lending additional support to this terrible project. The continued use of fossil fuels as our main source of energy is irresponsible, unethical, and immoral. We are in the midst of a climate crisis, we are destroying our own environment, and we cannot continue America's addiction to fossil fuels. The costs of this project could have gone towards clean tech renewable energy generation. This could have created Hoosier jobs just the same and it would have prevented numerous premature deaths.Sumner Nicholshttps://www.blogger.com/profile/06524601528882299889noreply@blogger.com