We are witnessing a structural collapse of the US energy model. Between the April 6 deadline to reopen Hormuz and the DOE pulling $1.8B in funding for grid upgrades this morning, utilities are now passing 100% of their "infrastructure decay" costs directly to the consumer.
With hardware like transformers now 90% more expensive than in 2021, the double-digit hikes we're seeing aren't for growth, they're for survival. Are we just accepting that energy is now a variable liability, or is there a legitimate way to hedge against a system that is physically falling apart?
The US Grid Death Spiral: Why the DOE's $1.8B loan cancellation marks the end of "stable" utility rates.
byu/imgood-hboutU-3030 ineconomy
Posted by imgood-hboutU-3030
2 Comments
The US grid is no longer a utility; its a legacy debt instrument. We’re paying a premium for ‘magic smoke’ insfrastucture while lead times for transformers are offficialy at 210 weeks (4 years). If you aren’t calculating your 20-year liability right now, you aren’t paying attention. You’re just waiting for the next ‘Emergency Surcharge’ to wipe out your OpEx. This is the ultimate ‘inflation tax’ and most people are flying blind.
$1.8 billion is a drop in the bucket compared to what the true costs actually are now and how much worse they will be now that the Dear Leader has bombed Iran thereby FUBARing the world’s economy.
The best solution for personal energy “protection” is going both solar and wind at home. Solar systems for homes with additional small individual wind generator where applicable.
The major power distribution networks are still needed but throwing a mere $1.8 billion at the problem nationwide is like pissing into the wind.