Utah Energy - Following in the footsteps of California and Europe?

At a Marlo Oaks fundraiser today, I was seated at a table with Utah governor, Spencer Cox, US Congressman (Utah 3) John Curtis, former Utah Speaker of the House, Greg Hughes along with several other donors to Oak's campaign for Utah State Treasurer.

The topic came around to energy. Representative Curtis, who chairs a Republican Caucus on climate change, noted the energy problems of Europe. Germany, for one shifted its efforts to renewable energy sources without insuring sufficient energy reliability during the transition. As a consequence, Germans will be paying 8x versus last year for natural gas this winter. Yes, Curtis notes, the German government will subsidize the high consumer gas bills, but its ultimately the taxpayer who foots the bill. Curtis warned that California is "doing a Europe" and already is facing the prospects of rolling blackouts and the highest power rates in the nation.

I said that Utah has the lowest power rates in the nation, around $0.11 per kilowatt hour. I referred to a speech given to LSDM four or five years ago by Gary Hogeveen, CEO of Rocky Mountain Power (RMP). Hogeveen said that Utah would phase out its coal plants, now supplying 70% of Utah's electrical power, over the next fifteen years (now ten or eleven years to go) after the coal plants reached the end of their depreciable life. RMP, per Hogeveen, would then replace the coal power with a medley of gas, solar and wind. RMP would accomplish this transition without increasing Utah's overall power costs, per Hogeveen. I told my tablemates that I would like to see Hogeveen update his forecast, because, given what's going on in California, eg. higher power costs as California moves into renewable sources, I didn't see how the same cost increases wouldn't accrue to Utah as it makes its energy transition.

Governor Cox made two points. 1. Utah coal plants may have to be phased out sooner than planned. Colorado interests are making a credible effort with the EPA to close Utah coal plants sooner than anticipated. Pollution from Utah coal plants, Colorado interests say, renders Colorado air quality unsafe. If Utah coal plants are forced to close early, Governor Cox says, Utah energy prices will skyrocket. 2. The notion of nuclear power as a source of clean energy is gaining support. RMP is a partner on the nuclear plant currently being built near Kemmerer, Wyoming. Governor Cox wants to ramp up discussion on nuclear power.

The upshot of this discussion was that it's not just Europe and California that is entering a self-made energy trap. Utah may not be far behind.

PS. Governor Cox noted, with some irony, that much in the same way that Germany had a reliance, now curtailed, on Russian natural gas, Utah exports coal power to California. So, the Californians may not be as virtuous as they let on as they use out of state power from "dirty" coal. And California could be left in more of a lurch than they anticipate if Utah coal plants are forced to shut down earlier than scheduled.

PSS. Mistakes of transcription are mine.