Tuesday, 27 December 2011

Homeless - Stranded, & Need Help

!: Homeless - Stranded, & Need Help

Even if you do not see them, they are there. Every day they are standing at the stoplight at the interstate ramp of I-40 at 15-501. They are holding signs that say, "Homeless, Stranded, Need Help." You might occasionally glance at them but you are careful to avoid eye contact. You wonder if they are really stranded and homeless. You wonder how much money they make. You wonder if they would accept an ordinary day job if someone offered it. You wonder what type of condition, circumstance, or character flaw allows these men to degrade themselves by begging for change at freeway stops. You occasionally take quick glances at their faces and see vacant, distant, pathetic expressions. You begin to notice the same expression on the faces of many other highway beggars in the area. You wonder what their lives are really like.

Maybe you do not wonder about any of this at all, but many of us do. I did. I became curious about two men who I had noticed standing every day at the 15-501 Exit off of I-40. One morning a few months ago (for reasons that I still do not understand) I pulled off the ramp and onto a service road. I walked through the underbrush, over a fence, across the ramp and approached one of the highway beggars. As I approached the homeless man, I mentally rehearsed a few openers to explain my interest. I slowly walked close enough to shake hands and introduce myself.

I said, "I've noticed you guys out here for a long time. Do you mind if I ask you a few questions?" The homeless man said, "What kind of questions?" "I don't really know, yet," I admitted. "I have this idea about making a videotape that describes what you guys are doing out here. I think a lot of people would be interested." "I don't know about a videotape, but we'll be happy to talk to you. I'm Charles."

He looked over into a stand of trees about 30 feet from the ramp. There were two other homeless men sitting on crates in what I later learned was their "break area." Charles pointed at me and yelled over the traffic noise to one of the other homeless men, "Talk to him!" He smiled at me and said, "His name is Bulldog. I can't talk to you right now. You can go talk to Bulldog if you want to."

Bulldog looked like a guy who had earned his nickname. He was a short, sturdy, tattooed guy with long hair. He was sitting with another man who appeared to have some type of skin disorder. I walked over and sat down in the break area and started chatting with Bulldog. He told me that he was a former Navy Seal. He said that he had been on the highway ever since both of his parents died many years ago. He said that he and Charles worked together and that they had been standing at this same ramp for almost two years. I must have looked surprised that they had been at the same spot for so long. Bulldog explained, "We're all out here waitin' for something. Charles over there is waitin' to get his driver's license back. Ralph here is waitin' for his disability claim to go through. Everybody out here is waitin' for something." I asked, "What are you waiting for, Bulldog?" Bulldog looked up to the sky, raised his hands into the air and said, "I'm waitin' to be taken up by Jesus."

Eventually Charles joined us in the break area. He appeared to be a respected leader among the group. He told me that he previously worked for thirteen years for an electric company in the area. He had been married and had several children. His life had taken a sour turn a few years ago when he lost his driver's license. He was a little vague about how this happened, but he said the loss of his driver's license started a chain reaction of negative events that left him with no way to earn money.

I brought up the idea of making a videotape to tell some of these stories. Bulldog made it very clear that he was not interested. Charles said, "We don't know you well enough for something like that. But you can come out here anytime to talk with us if you want." His invitation led to a series of visits over the next several months. During these visits I learned a great deal about their lives. I also grew to like these guys.

The first few conversations focused primarily on the mechanics of their work as panhandlers. Charles and Bulldog told me that they "own" the ramp at I-40 and 15-501. They sometimes share their ramp with a few other local people, and they are happy to share "shifts" with drifters who are just passing through. I asked Bulldog if other panhandlers ever challenged their ownership of the ramp. He looked over into the trees at a long metal pole and said he was not worried about that. He said it was "sort of a code of the West" that panhandlers respected each others' property rights. Charles and Bulldog start early enough each morning to catch the rush hour traffic.

They take a long break about ten o'clock. They return in the afternoon around three and work through evening rush hour. They work in thirty minute shifts. One of them stands on the ramp with a sign while the other sits on a crate in the break area. They are a team, and they work together well. They pool their revenue and share expenses. They say they each can make about ten to twelve dollars a day, but I suspect that they may make a little more than that. Charles has studied the giving patterns of people passing by and can predict which days will be better than average. For example, he said, "Fridays before holiday weekends are always our best days."

Charles and Bulldog live together in a campsite in the woods near the Interstate. They do not reveal the location of the campsite but they appear to be very proud of it. They each have a tent, sleeping bag and a propane tank. They live in this campsite year round, regardless of the temperature. They store water in containers and take "half a bath" at the campsite each morning. The other "half a bath" they take in the restroom at Wal-Mart. They take pride and satisfaction in their ability to live independently in the woods. They correctly pointed out that, "Not everybody can to do it."

Eventually, I learned that Charles and Bulldog have "regulars" who frequently give them food. Bulldog told me that he once returned to the break area after being away for a while, and someone had left food on top of one of the crates. On one occasion while we were talking, they were eating freshly baked bread given to them that morning by a truck driver from a bakery. In fact, they seemed to have plenty of food. "What we really need," Bulldog said, "is propane fuel and bug repellent to get rid of the ticks."

Charles and Bulldog told me that each panhandler in Durham must buy a permit for twenty dollars from the city or be subject to a fine. This permit includes a photo ID that the panhandler must wear when working. This requirement became relevant one afternoon when I was at the Interstate ramp during a visit from the Durham police. A young policeman parked his patrol car and approached the break area where I was sitting with four panhandlers. Everyone but me quickly stood up and displayed his ID card. When the cop asked to see my permit, Charles said, "This guy is some kind of social worker. He's okay." The friendly cop accepted the harmless but untrue explanation and left.

I think the police actually like the panhandlers at the 15-501 ramp, and I can understand why. On another day while I was visiting the ramp, a car at the intersection started to smoke from under the hood. A young woman driving the car panicked and immediately called 911 on her cell phone. Charles approached the car and asked if he could help. The distraught woman said that she thought her car was on fire. Charles asked for permission to look under the hood where he saw a small leak in one hose. He reassured the woman that her car was fine. He called Bulldog over to help push the car out of the road and onto the curb. Within minutes a police car and a fire truck were at the scene. Charles took charge. He explained the circumstance to the patrolman and told him, "Everything is under control." The police and fire department quickly moved on to other matters. When the woman's husband arrived, Charles continued to manage the situation in a way that minimized the young woman's embarrassment for overreacting. Later Charles told me that he and Bulldog often manage situations like that at "their intersection."

Charles, Bulldog, and the other panhandlers I met are not ashamed about begging for money. Their acceptance of begging challenges the stereotypes about work and self sufficiency that most men in our culture are stuck with, whether we like it or not. I think Charles and Bulldog have created some sophisticated rationalizations that make them more comfortable with begging. For example, Charles says, "At least we are not stealing money. We would rather accept what people give us than steal it." Another rationalization is supported by the permit that they wear. They say, "If there was something wrong with panhandling why would the city sell us a permit to do it?" One of their friends said, "I am not proud of standing out here with a sign but I am proud of being able to live on my own in the woods."

After two years at the same Interstate ramp, Charles and Bulldog have established some very strong relationships beyond the community of fellow panhandlers. The strongest of these relationships is with a group of Divinity School students from Duke University. This handful of students has created the 15-501 Ministry that exists to serve the handful of panhandlers near the 15-501 intersection. Every Sunday afternoon the students set up a small tent at the end of a service road and conduct a Christian church service for the panhandlers. The students return every Monday afternoon and serve a free meal. The students have a very strong friendship with Charles and Bulldog that appears to be based on mutual trust and respect. One of the students is helping Charles get his driver's license back.

Charles and Bulldog do not have a house, but I do not think they are homeless. They have a comfortable campsite and people who give them enough money and supplies to eat reasonably well. They even have a sense of independence that comes with being free spirits who are able to make a home in the woods. In some ways they have more than a house. They have created a genuine community.

I do think that they are stranded and need help. Charles expressed it best when he said, "If somebody drove by in a car and gave me a thousand dollars it wouldn't make any difference. I could get an apartment and pay the deposits and two months' rent. After that I would be right back out here, but I would have lost this ramp and lost my campsite." I think he is stranded on the Interstate ramp because he cannot take the risk to leave and let go of what little he already has.

Their situation seems similar to many of us who drive by on their ramp. We own cars and live in houses, but many of us are still stranded in one situation or another. Some of us are stranded in painful relationships. Some of us are stranded in dead end jobs or in mindless routines. Some of us are stranded on Interstate ramps. Maybe the common thread is our inability to take our own version of risk that threatens what little we have.

Sparky, another member of the 15-501 panhandling community, told me he has been standing on I-40 with a sign since 1991. I asked, "How long are you going to do this?" He said, "Only three more years. Then I'm going to retire." He sounded just like countless other people who tread water while waiting for retirement. Maybe we avoid eye contact with the panhandlers because we do not want to face what we have in common.


Homeless - Stranded, & Need Help

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Monday, 19 December 2011

Rising Tides, Rising Temperatures: Global Warming Effects on the Oceans

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Wednesday, 14 December 2011

Black and Decker Electric Pole Saw

!: Black and Decker Electric Pole Saw

When one needs to cut down a tree limb or chop up some firewood, a chainsaw is often employed. Chainsaws are the best tool for cutting wood because they are designed for exactly that purpose. Chainsaws are powerful tools that should not be handled lightly. Gasoline powered chainsaws are among the most powerful of the tools, but most people don't require this level of power. For most consumers, a lighter, easier to use chainsaw is often best. Electric chainsaws fit this description to the tee. For trimming branches high up in the air, people often choose a specific type of electric chainsaw called the pole saw. Pole saws have an electric chainsaw on one end of a long pole, allowing users to trim trees while planted firmly on the ground.

Black and Decker, a well known manufacturer of power tools, makes a consumer-level electric pole saw. This product has the added advantage of being completely wireless, using a rechargeable battery pack for power. Users can walk to and from the worksite without dragging along an extension cord. The saw blade is attached to an adjustable pole that can reach heights of up to 14 feet. The eight inch guide bar can cut through branches up to six inches thick. When fully charged, the tool can cut through 100 1.5 inch thick branches in one sitting.

The pole consists of three sections, allowing it to fold down into a compact shape for easy storage. The electric motor is designed to be unobtrusive, allowing users to see the work surface without the motor's bulk obstructing their sight. Users control the blade using a simple switch on the handle. At only 7.6 pounds, it is incredibly easy to maneuver even at full extension. A storage bag is included to hold all of the accessories like chain guard and oil.


Black and Decker Electric Pole Saw

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Tuesday, 6 December 2011

Portable Generators - Safe Use

!: Portable Generators - Safe Use

The demand for portable generators has increased substantially in recent years. There are myriad reasons for this increase. Emergency portable generators can have significant benefits to individuals and communities, helping to save lives, and lessening the hardships caused by natural disasters and lengthy power outages. Consumers should, however, be aware of the dangers associated with improper use of electric generators. We will highlight a few of these in the following paragraphs.

Portable Generators Produce Poisonous Carbon Monoxide

Carbon monoxide is an odorless and colorless gas discharged in generator exhaust. Inhalation of carbon monoxide is often lethal, and a number of deaths occur each year as a result of consumer generator use.

In 2004, the Consumer Products Safety Commission (CPSC) studied deaths from generator use following four major hurricanes that struck land in the state of Florida. Powering air conditioners and other appliances during nighttime hours was the primary factor identified in generator-related deaths in the CPSC Florida study, and in each of the cited cases, improper location of the portable generator became key to the tragic outcome. In 2000, two children swimming behind a family houseboat on Utah's Lake Powell drowned after losing consciousness when a portable generator beneath a swim deck produced dangerous fumes. Once again, poorly planned placement of a consumer-use generator was cited as the primary cause of the tragedy.

Because of many similar incidents, the Consumer Products Safety Commission promulgated in December, 2006 that all new generators sold after March of 2007 be affixed with labels setting forth technical and performance data, in addition to the following warning:

"Using a generator indoors CAN KILL YOU IN MINUTES. Generator exhaust contains carbon monoxide. This is a poison you cannot see or smell. NEVER use (generator) inside a home or garage, EVEN IF doors and windows are open. ONLY use outside and far away from windows, doors, and vents."

The CDC reported that a small portable generator will produce the carbon-monoxide level of six idling cars, a reality that surprises many consumers. Carbon-monoxide levels can be compounded with generator use because the gas is heavy and tends to linger, making it difficult to expunge from an infected area. This means that generators are never safe to use indoors, including inside of open garages, and that during operation they should be located as far from residential units or buildings as possible. In particular, operation near windows, screen doors, vents, and air conditioning ducts should be avoided. Operators should also note wind direction, and locate generators so that prevailing air currents carry fumes away from nearby buildings or residences.

Though all portable generators produce carbon monoxide, certain models create less CO emissions than others. For example, generators equipped with overhead valve (OHV) engines, a standard design in modern models, produce less carbon monoxide emissions than models sporting older side-valve, pushrod engines. Any consumer who intends to use a portable generator in locations with restricted airflow should seek a model creating the fewest emissions possible.

Portable Generators must be Dry and Free from Debris

Safe emergency portable generator use requires planning. Since portable generators are often used in inclement weather, or during the night when visibility is restricted, understanding how and where to use them in advance is critical. It is best to operate generators only in open areas, and, whenever possible, in locations where the generators will be protected from falling debris like leaves and twigs, and from blowing rain, sleet, or snow. A portable generator should never be wet during operation. An operator should likewise never be standing in water or on damp ground when he or she starts a portable generator. Portable generators should always be grounded according to manufacturers' recommendations. Methods of grounding vary by generator model, but in general will require that a generator be connected to a fixed metal object (for instance, a cold water pipe - spigots for hoses or sprinklers on the outside of the house can be effective choices for generator use).

If heavy debris falls onto the engine of a portable generator, covering it or restricting air flow, the unit can overheat, producing dangerous levels of heat that in extreme instances can even ignite debris. If possible, an operator should dislodge undesired debris from a generator using pressurized air rather than scooping the debris out by hand.

We recommend placing a portable generator atop a concrete pad which rests at least 15 feet from all residences or buildings. Ideally a small roof should cover the pad, leaving a minimum of three feet of clearance on all sides of the generator for ventilation purposes. Other suggested generator locations are beneath a canopy, or inside an open or well-ventilated shed or carport.

Portable Generators must be Properly Connected

A portable generator should never be plugged directly into a residential electrical system (i.e., a wall outlet). Appliances should either be plugged straight into a generator outlet, or into a generator-ready extension cord (often referred to on packaging as "generator cords"). Since portable generators will be placed outdoors, operators need to be sure that any extension cord employed has been manufacturer-rated for outdoor use, and that it carries the Underwriters Laboratories endorsement for the maximum wattage produced by the generator model. Whenever possible, operators should also avoid routing extension cords in a manner that would create tripping hazards or covering extension cords with combustible carpets or padding which can cause heat build-up and perhaps even fire. Particular care must be taken when using an extension cord in wet conditions. If an extension cord is hot to the touch, it has been overloaded and must be either replaced or its load reduced. Operators should periodically inspect all extension cords for frays, cuts, cracks, exposed wiring, and plug damage, and replace any which have been compromised. An operator should always power on a portable generator before connecting a load to it (this is true whether appliances are to be connected directly or via an extension cord), and when connecting appliances, an operator should first connect the highest-wattage ones.

Rather than plugging appliances into a portable generator directly or via an extension cord, a user may wish to employ an electric transfer switch (which should be installed by a licensed electrician or somebody familiar with building codes in the operator's area). A transfer switch serves as a bridge between the generator and main circuit-breaker panel of a building or residence. It allows a portable generator to send power directly and safely into a home electrical system. The National Electrical Code (700-6) provides that transfer equipment must be designed and installed to prevent inadvertent interconnection of normal and emergency power sources. In other words, an electric transfer switch needs to stop a potentially-lethal problem known as back feed -- electricity being created by a home generator that enters outside power lines where it poses an electrocution risk to unsuspecting power-company workers. In an attempt to ensure that transfer equipment is installed according to code, some local government agencies require that the installer obtain a permit prior to installation. A qualified electrician will know when a permit is needed, and how to go about obtaining one. One type of transfer switch, referred to as a double-pole, double throw model, won't engage unless outside utility power has been safely disconnected. Models of this kind are an excellent way to ensure that rules of safety are observed.

Operators need to keep something else in mind: Because utility workers are completely vulnerable when working on downed lines, lines that they believe are without power, many municipalities have criminalized the reckless use of portable and home generators. Violators can be subject to harsh fines, and even incarceration if convicted. Improper or reckless employment of portable or home generators can also void homeowners' insurance in the event of property damage or personal injury. Given the number of drawbacks, engaging a licensed electrician to install transfer equipment is a sound investment.

Operators should take care not to overload a portable generator. In addition to its running watts, all generators have a maximum or surge-watts rating, reserve power which is intended to start appliance motors, and is not available for more than a few seconds at a time. During normal use, appliances connected to a generator should not consume above 80% of the generator's maximum running watts. This reduces the chance of unintended damage or overheating. The watts used by an appliance will often be listed on a data plate attached to its back or underside. If a data plate cannot be located, a wattage meter which is inserted between an appliance and wall outlet is a good way to determine its exact wattage demands. A list of the average watts used by many common household appliances is also available on our website. Lists like ours are not intended to be comprehensive; however, such lists give some indication of the number and size of appliances a portable or home generator model ought to power safely.

Other Safety Tips for Portable Generators

Portable generators use 12 to 18 gallons of gasoline per day; for this reason, an extended blackout will require substantial fuel reserves. Gasoline, diesel, and other fuels burned by portable generators are highly combustible, and storing substantial amounts of them can be hazardous if done carelessly. We recommend that gasoline be stored in a container meeting American National Standards Institute (ANSI) requirements, as well as any applicable state requirements (the state of California, for example, has more stringent requirements known as "CARB"). ANSI coordinates the development and implementation of voluntary safety standards by United States manufacturers. An ANSI-compliant container will always be prominently marked as such.

It is advisable to use a stabilizer, such as STA-BIL, in gasoline or diesel which will be stored for emergency purposes. The shelf-life of pump gas is roughly six months, and for diesel, roughly a year. Stabilizers can frequently double a fuel's effective shelf-life. Some stabilizers can endow gasoline with a life span of up to two years, and diesel considerably longer. T-REX recommends that, ideally, gasoline supplies be used and replaced annually. It is good practice to use fuel stored for emergency use in other gas-powered equipment -- like chain saws and lawn mowers, ATVs or motorcycles. This guarantees that fuel supplies are replenished, and that gasoline is always ready for use when needed. Having a few extra quarts of oil, air and fuel filters, and spark plugs is also advisable.

There should never be open flames near a portable generator during operation. Flames, including lighted cigarettes, should also be kept away from a generator fuel supply. In particular a candle should never be used to provide illumination when preparing a generator for operation or powering it on.

A portable generator should not be refueled while running. If possible, refueling should occur after the generator engine has been allowed to cool, to prevent inadvertent fire should fuel make contact with a hot surface. To avoid refueling spills, it is always wise to store alongside a generator a funnel that can be used for pouring fuel and a rag to clean up spills. It is also advisable to have a flashlight and fire extinguisher within reach.

Keeping a portable generator in good working condition is important to ensure that it operates efficiently and safely when needed. Most manufacturers recommend that portable or home generators be started and allowed to run for five minutes every three months to insure that they remain ready for use. During down time, fuel tanks should be kept full (topped off). This prevents condensation from accumulating inside the tank, and diluting fuel. Water-saturated fuel can produce starting problems, and the engine may sputter during operation. Unfortunately, few people who purchase portable generators for emergency power needs heed this simple advice. Ignoring it can mean that a generator will not operate when it is most needed. We also advise generator owners to have their units serviced annually by a qualified technician.

It is a sound practice to keep small children away from portable generators. Even if a generator is being operated in a safe and well-ventilated area, its engine parts can become burning hot during normal use.

Finally, certain portable generator models are safer than others. Emergency generators are not intended for daily use, but are built to provide continuous occasional power in an emergency, or during a natural disaster or blackout. Inexpensive models can be more susceptible than top brands to heat failure, and heat failure in extreme instances can start fires. There are many inexpensive generators on the market -- while inexpensive does not mean bad or unreliable, lower-priced brands may not last as long, or be as safe, as their higher-priced counterparts.

Summary

Here is a summary checklist of safety tips for portable-generator operators:

oOperators should always read the operating instructions or user's manual before starting or using a portable generator. For best results and ultimate safety, an operator should adhere to these instructions. Generator owners should never remove warning stickers or safety devices from their models.

oA user should be familiar with the sound of his or her portable generator during normal operations. This allows for quick and easy identification of a problem during use; if a problem is detected, operators must immediately power down the unit.

oA portable generator should be used only outdoors and as far away as possible from open windows, air conditioners, vents or air-conditioning ducts.

oUsers should check wind direction to ensure that during operation, exhaust emissions are being blown away from buildings and residences.

oThere should be plenty of ventilation on all sides of a portable generator.

oA portable generator should be operated only in clean, dry locations. A permanent or temporary shelter may need to be built to house a portable generator during its operation. An operator should never touch any generator unless his or her hands are dry.

oA portable generator should be properly grounded before use to prevent inadvertent electric shocks.

oAn undersized or frayed extension cord should never be used with a portable generator. If an extension cord becomes hot to the touch during use, it has been overloaded and the operator needs to replace it immediately with a larger cord, or power down the generator. Operators should always route extension cords to minimize tripping hazards.

oA generator should never be connected to an existing residential wiring system unless a DPDT electric transfer switch is used to prevent back feed, and isolate generator power from external lines.

oThe main circuit breaker in a home or building should be turned off before any appliances are connected to a portable generator.

oOperators should ensure that generators are not overloaded by too many or too-large appliances; it is a good safe practice never to attach enough appliances to exceed 80% of a generator's running watts.

oFuel for the portable generator should be stored in a safe ANSI-compliant container.

oThere should never be open flame near a portable generator during operation or fueling.

oA user should power down and, if possible, allow to cool, a portable generator prior to refueling.

oA generator should be serviced at least annually even if it has not seen use. Unless an owner is qualified, it is best to engage a specialist for generator service or repairs.

_______________________

This article is for informational purposes only. It is not intended to serve as a substitute for, or replacement of, the operating instructions or user's manual of any generator, regulations or guidance promulgated by government agencies, or recommendations made by qualified electricians. Generators should be used only in accordance with manufacturers' instructions.

This article was prepared by the management of T-REX Generators. T-REX Generators is a virtual warehouse mega-store specializing in portable generators and generator accessories. We carry portable generators for natural disasters and emergency preparedness, job sites, recreation, and home back-up power needs. By supplying superior generators from industry-leading manufacturers, and maintaining a low-cost structure, T-REX is able to assure consumers that every generator purchased from us is a top value. For more information, visit our website at http://www.trexgenerators.com.


Portable Generators - Safe Use

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Tuesday, 22 November 2011

Tree Trimming: The Different Tools That Are Used For The Job

!: Tree Trimming: The Different Tools That Are Used For The Job

The best time for tree trimming varies from tree species to another. In general, spring up to the early part of summer is considered as the best time for this type of tree service. When tree trimming and shaping is done, it's really important that the right tools are used in order to prevent injuries both to the trees and the persons doing the job. In addition, using the proper tools will also help ensure that the tree ends up looking more aesthetically pleasing instead of the other way around.

There are different kinds of tree trimming tools available in the market today. Each one of them is designed for cutting different trees that have different sizes and varying heights.

The Tools Used For Trimming Trees

The process of trimming trees may sound really simple but it's not. Certain guidelines need to be followed in order to ensure the safe cutting of the trees' branches. Overall, doing the trimming job at the right place and at the right time using the proper tools will not only enhance the look of the canopy shape but will also help to promote the growth of the trees while protecting them against diseases. Below are the tools used for the job.

Mechanical Saw: A lot of gardeners nowadays own a mechanical saw, which they use for performing basic garden maintenance procedures. This is a manually-operated tool, which can also be used for trimming trees.

Chain Saw: There are two types of chain saws namely those that run on gas and those that run on electric power. Between the two, gas powered chain saws are more popularly used when it comes to shaping trees. They can be used to trim any kind of tree.

Pole Tree Pruner: This is one of the best tools to use if you're going to trim a tree from the ground. With this tool, you can trim small to medium-sized branches even without using a ladder. A pole tree pruner is made of 3 parts namely a saw, rope, and an adjustable handle.

Lopper: This is well-suited for trimming small trees specifically those that range from 2 to 3 inches in diameter. This is also called the lopper shear or pruner lopper. This comes with a long handle and blade, which resembles that of a scissor.

Ladder: This is important to have since most of trees' branches are too high to reach without using this tool. If you want something really good, an extension ladder is a good choice. You can use this to trim both small and large trees.

Aside from the ones that I have mentioned above, there are also other types of tools that are more sophisticated such as wood chippers. Regardless of the kind of tool that you use, it's important that you use it with precaution by following the manufacturer's guidelines.


Tree Trimming: The Different Tools That Are Used For The Job

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Monday, 7 November 2011

What's Up (or Down) With Texas Electricity Rates?

!: What's Up (or Down) With Texas Electricity Rates?

Since deregulation began within the state of Texas at the turn of the millennium, Texans have learned as much or more about how electricity works than people in any other place in the world. Some of the lessons learned were great for the foundation of understanding how the market would affect customers in principle. Some of the lessons learned could be considered more symptomatic of the times than as part of the bedrock of how the market will always function.

One of the lessons that we've all learned and been taught to expect is that electricity rates will always go up, sometimes way up, during the summer heat season. The notion of the rate increasing and the bills increasing seems almost intuitive. And frankly, why wouldn't it? Since the days before deregulation, Reliant's rates jumped each summer from May - November.

Was the seasonal rate increase a product of additional expenses during that period? Greed? State mandate?

The reality of it is that it was almost exclusively a product of the companies incurring additional expenses in the summer time. But shouldn't the cost of generating electricity more or less remain constant between the winter and the summer? The simple answer is usually "no".

Why?

Given that it is much hotter in the summer within the state of Texas, more air conditioners are run, for both homes and businesses. It takes more A/C power to heat the same room at the same temperature as the outside heats up, too. The A/Cs have to run longer and later to keep homes and businesses cooled off. As more electricity is needed on a household by household basis, and a business by business basis, more electricity has to be generated and placed onto the state's electricity grid. As that happens, more electricity generators need to be run to keep up with demand than in other times of the year. The generators that are forced to come on line during this period are usually more expensive to run for the provider - which is why they're not the first generators online each day. When the generation becomes more expensive, the price increase is spread down the supply chain. The Retail Electricity Provider has to pay more and the customer, ultimately, has to pay more as well.

That makes it seem as though electricity rate increases really should be part and parcel to each year's heat season. But should this always be the case? Perhaps not.

Often times, experts will speak about this cause and effect relationship and then divert on a tangent in regard to natural gas prices. Natural gas prices affect the price of electricity in a place like Texas because many of the less-used generators run on natural gas as fuel for generating the electricity. Natural gas, as opposed to coal, nuclear, or various other products also used to generate electricity within the grid, is a much more expensive and volatile product on the price side. As a for instance, last summer saw record electricity prices that correlated almost symmetrically with record natural gas prices. Heading into this summer, however, we find that as a market, natural gas prices have basically collapsed to points that we haven't seen in more than half a decade. With that as a given, can't we basically assume that prices won't rise significantly? Yes, as part of the equation, as long as natural gas prices are lower, electricity prices will be lower. This is a foundational principle to how the market functions.

But that's not the entirety of the story. Another variable within the equation is often ignored and typically, by the average trader and forecaster within the Texas market, dismissed as relevant because it is assumed to be a relative constant, is market demand for electricity. And why wouldn't it be? It's always a hot summer in Texas, right? Homes will always need to be cooled, right? Businesses will always be booming and consuming more and more energy to create more products, right?

Well, the truth to one of those questions is, it's often a hot summer in Texas, so that assumption is ok.

On the question about home being cooled, well, homes always do need to be cooled, too. And so do apartments. But what happens if the mix of homes using electricity versus apartments using electricity ever dramatically shifts? Can less people living in homes drive the overall demand for electricity within the market down? Let's think about it.

On average, home dwellers use about 1.5 times the amount of energy that is used by apartment dwellers. Overall, the residential demand within the Texas grid, in aggregate, is roughly 40% of the total electricity used. If the mix of home dwellers to apartment dwellers is historically 55% to 45% of the population within Texas, this would indicate that almost 70% of the residential electricity demand traditionally comes from home dwellers. That also means that home dwellers generally impact about 27-30% of the total demand within the Texas electricity market as whole. Let's assume the 27-30% consumed by home dwellers within the market works for the summer, which is the most likely.

Now consider the possibility that a migration within the marketplace occurs from people living in homes to people living in apartments. In recessionary times, this is usually a reality and this recession is no different. Apartment communities are nearing capacity throughout Houston and Dallas, just as foreclosures rise and people move out of homes after layoffs and payroll decreases as an act of reducing expenses. Publicly available data on this is scarce, but we can use some of the information provided recently by http://HAR.com, which covers Houston real estate sales. This shows that more than 30% less new homes were sold in the Houston area over the first quarter this year and last. They've also released data disclosing that roughly 25% less existing homes were sold in the same time period. Meanwhile, foreclosure rates continue to increase, as do apartment occupancy rate. Extrapolate that across to Dallas as well and the numbers and demand within the overall market starts to look considerably different than years past. Specifically, a shift of that nature on the residential side of electricity usage translates into a relevant decrease in overall market demand for usage. The market clearing price for electricity within the market is based on what the last electricity generator selling electricity to the market has to charge to cover its costs. If the more expensive generators are impacted by that "demand destruction", and given that since those generators are the last to be used, they are impacted, the prices are not going to see the potential exponential increase that those generators would create.

That portrays what role something as simple as a shift in dwelling type for Texas residents could do to the market.

What happens if demand destruction also exists on the business side of the market? Are businesses using less electricity today than they were a year ago in Texas?

The answer is that if demand destruction occurs on the business side, the need for excess, more expensive electricity capacity within the market would see an even sharper decrease than what we looked at on the residential end. Business usage is demonstrably higher than residential usage within the Texas market, as whole.

So are businesses using less electricity today than this time last year? Well, yes. For one, any business that has gone out of business is using less, to be sure. It is a simple fact that the market is contracting right now, which means we're experiencing negative growth today. A classic and directly related example of this situation is what's occurring on the Houston Ship Channel. As a group, this set of businesses uses more electricity than any other specific group of businesses within the state. They have to use enormous amounts of electricity to create the products, such as plastics and tires for automobiles, that they ship throughout the rest of the world. When orders for new products weaken or dry up, these businesses are forced to take action, such as extended shut downs or flat out closures of production lines or the businesses themselves. These events have occurred within the last 12 months, and they've happened across multiple plants with few plants being unscathed.

With business usage for electricity on the whole representing a net decline within the market, coupled with less residential usage for the same reasons, demand destruction is a very real part of the overall prices reflected within the market at the beginning of this summer. If the demand remains depressed compared to the past 7+ years, this often dismissed potential variable within the equation for electricity prices to the public will continue to play a big role. The end result may be so significant that prices throughout the summer don't actually rise much at all, and could ultimately wind up lower at the end of the summer than when the heat season began. With that as a possibility, if not a probability, Texans can count on continuing to see some of the lowest electricity prices within the entire country for the duration of 2009. For every Texas resident within these recessionary times, that should be considered good news.

from May 24, 2009


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