Reply To: T-shirt designers unite and take over

[Rematog]

Brian,

Well, First, I still disagree with the assumed installed cost of $250k/ 5 MW module. With all costs (land, roads, buildings, cooling tower, transformers, etc.) I would argue between 1 to 2 million per FF module, IF modules sold for $500k FOB site. But, even with my upper estimate ($400/kw installed), many towns and cities would likely become their own utilities. With the low capital ($400/kw is dirt cheap) and operation costs (almost no cost for fuel), this would be very attracative. But, this would also require these entities to have service contracts with someone to provide high tech maintenance. And this facility would not be located downtown, but outside of town, probable near the local distrubution sub-station.

Plus, that town would have to buy the distribution assets of the utility currently servicing the area. Even using eminate domain, the govenment, local, state or national, can’t just take property. It must pay for it, likely the utilites book value for those assets. If the utility is dropping rates, due to the utility replacing it’s old plant’s with FF power, then the incentive is less.

Lastly, remember, that part of the “Pact” of a regulated utility with the government is that in return for giving up the ability to determine what it will charge for power (the rates are set by state commissions in most cases), the Utility is guaranteed a fair return on investment. In the past, this has resulted in “stranded assets” (plants that can’t be run due to new laws) owned by the utility being charged to the consumer. You can be sure that the utilities lawyers will file to have that town’s portion of the “stranded assets” included in the book value of the assets the town would have to pay for.

When all is said and done, these small city owned “utilities” running local FF modules, would be looked on by the town govenment as a revenue source for the city (like a lot of small water districts…I’ve been to city council meetings and seen this). The town council would set rates based on the old fear and greed model. I.e. “How much can we charge the voters before they get too mad at us and vote us out.” Also, these local run gov. agencies often become full of patronage jobs….

Regarding a unit in the basement of a shopping mall…… FF is not likely to get that well accepted in my lifetime. I’m in my fifties, and doubt that they would be allowed in urban areas for at least 20-30 years. The attitude that these are as safe and easy to use as an air conditioner, well, I just don’t buy it. They are certainly way more complex. They generate X-rays and some level of nuclear contamination, and the fuel is a pretty hazardous material. Not something to put in a basement and run by someone that can’t fix their own air-conditioner or plumbing.