Showing posts with label IOWA FORUM. Show all posts
Showing posts with label IOWA FORUM. Show all posts

IOWA FORUM

By Mark Cooper

Why would anyone pay a $150 for something that costs $100? They wouldn’t if they had a choice, and that’s the problem with new nuclear reactors. Wall Street knows that new reactors cost too much and won’t fund them. But MidAmerican wants to build them, so the company is looking to the Iowa ratepayer to play the fool.

MidAmerican’s 636,000 customers in Iowa are captive customers; they can’t shop for the best power deal. Historically, when a utility wants to add new generating capacity it must build the plant and begin producing electricity before seeking to recover the costs from its customers. They can only recover costs that are reasonable and prudent. And the utility’s rate of return on its investment in the new plant should be commensurate with the risk the utility faces in undertaking the project.

MidAmerican, through HSB 124 and SSB 1144, wants to turn the whole process on its head. As a result, all three of these traditional consumer protections would be dramatically weakened.

The cost recovery scheme that MidAmerican is pushing shifts the risks away from its stockholders and onto its ratepayers. Electric bills rise long before a new power plant even produces one kilowatt. Ratepayers are on the hook even if the new plant costs soar, or the project is canceled or abandoned.

Last year, the Iowa legislature considered cost recovery legislation that had a provision empowering the Public Utility Board to require competitive bidding for new electricity resources. Under that approach, only if nuclear is cheaper can the project proceed, but MidAmerican knows nuclear is much more costly than efficiency, natural gas or wind, so this year’s bill drops that language. In other words, keep out competition – and the beneficial effect it has on prices.

And what exactly does MidAmerican want its customers to underwrite?

Earlier this year, MidAmerican President and CEO William Fehrman told the Iowa Senate Commerce Committee that his company is exploring a plan to build small modular reactors as opposed to one large central generating plant like Iowa’s existing Duane Arnold reactor. Small modular reactors are units that produce tens to hundreds of megawatts versus the 1,200 to 1,600 megawatts of new reactor designs.

Small modular reactors have become something of the darling of nuclear power advocates recently, in part because they claim that these small reactors will solve the major cost problems of large nuclear projects.

But smaller reactors don’t necessarily mean that the electricity produced will be cheaper. In fact, estimated costs for these new and untested designs are purely hypothetical, since none have ever been built commercially.

Meanwhile, utilities are abandoning or delaying proposed new large reactor projects throughout the U.S., because estimated costs for these reactors have soared and can’t compete against cheaper alternatives. In Florida, this has resulted in ratepayers paying almost half a billion dollars so far for new large reactors that that won’t be built until after 2020 – if ever.

Giving MidAmerican advanced cost recovery for totally untested designs is the absolute worst thing to do with ratepayer money. Ratepayers are not merely forced to be investment bankers; they are turned into venture capitalists with a high risk of failure and no projected return on their investment.

MidAmerican is selling its plan to the legislature and Iowans as a way to create jobs and deliver new supplies of energy. That’s just not true. Nuclear reactors produce relatively few jobs for the dollars invested. The costly electricity means consumers have less to spend on other goods and services and add to the cost of doing business. And the equipment vendors often are foreign corporations, sucking U.S. dollars overseas. The alternatives available in Iowa will create at least twice as many jobs as nuclear reactors.

Would Iowans benefit by paying higher electricity rates now for risky reactor projects that may or may not happen a decade or two in the future? The answer is a resounding “no.”
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Cooper is a senior fellow for economic analysis at the Institute for Energy and the Environment at Vermont Law School.
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Copyright (C) 2011 by the Iowa Forum. 3/11

Thursday, October 22, 2009

A Rose for Sister Mary

IOWA FORUM
By Erik Camayd-Freixas

When the Iowa Department of Human Rights awarded the 2009 Cristine Wilson Medal for Equality and Justice to Sister Mary McCauley for her defense of community after the Postville raid, she humbly said: “It is our duty to work for equality and justice.”

These are just the latest of this brave woman’s history-bound words in a ministry that started the day of the raid, May 12, 2008, when she summoned Father Paul Ouderkirk out of retirement with a phone call: “Father, we need a collar down here.” Ever since, she has been a pillar of strength and inspiration to many in Postville and across the country.

When I was inside Waterloo’s National Cattle Congress, interpreting the misguided prosecutions and watching authorities sworn to uphold the Constitution deny it to 389 ragged workers in chains and tears, I was reminded of Orwell’s Animal Farm: All are equal under the law, “but some are more equal than others.” I was dumbfounded, confused, and afraid, with no one to turn to for guidance on equality and justice. That is when I found Sister Mary.

It was the evening of May 13th. Eager to find out what was happening “on the outside,” I found an Internet video clip of Sister Mary, surrounded by trembling women and children, describing the tragedy. “This shattered us,” she said firmly. “Hundreds of families were torn apart by this raid. The humanitarian impact is obvious to anyone in Postville. The economic impact will soon be evident.” I had found a moral compass.

Sister Mary had told the world what was happening in Postville. The ball was in my court: Shame on me, if I didn’t follow her lead and tell what happened on the inside. After I published my essay on the Waterloo prosecutions, she wrote to thank me. Since then we have corresponded and spoken regularly about equality and justice.

Those who do not know her might think she is a passionate advocate. Yet it is not passion or politics that drives her, but duty, serene faith, sheer humanity, and intelligence. Sister Mary is the voice of reason and sanity in times of extremism and crisis. Hundreds of gendarmes in trucks and helicopters storm the town; wailing children, destitute mothers, hungry workers beg for shelter; community volunteers seek her direction; and Sister Mary delivers, calm amid the storm. Her composure and kindness are a source of strength for others.

I joined the Postville relief effort part-time from afar and found it heart-wrenching, even in small doses. I wondered over the months how those in Postville could cope day-to-day with so much misery. I understood when I met Sister Mary last October at Luther College and at the Postville anniversary vigil in May. A year of stress and sorrow had taken a visible toll on many of the relief workers, but Sister Mary was in for the long run.

Day in and day out they reckoned with the traumatized children; the desperate women with ankle monitors and deformed hands from 24,000 daily cuts on the meatpacking line; the starving families in Guatemala and Mexico, the workers languishing in jail, the persistent fear and despair, the bills, the legal and medical needs, the empty food pantry, the crumbling economy of the town, the homeless, and the long, cold, heartless winter of 2008. And they are still at it. Sister Mary’s work is far from over.

Almost a year and a half later, among many other problems, there are still women with electronic shackles and ankle sores, suffering from depression and post-traumatic stress. Sister Mary accepted the Human Rights Medal on their behalf.

In contrast with Mary McCauley’s leadership and grandeur stands the federal government’s callous disregard for the local community, both migrant and Iowan. Postville’s is the most egregious example of reckless enforcement, abuse of process, and domestic interventionism in American history. Yet no investigation, acceptance of responsibility, or assistance of any kind has been forthcoming. Instead, a follower, in this untoward prosecutorial debacle, is being promoted to a position of leadership as Northern Iowa’s U.S. Attorney.

The Cristine Wilson Medal, reserved for true leaders, is a fitting preview of how history will regard these events and their participants. It symbolizes the inspiring strength of the individual, and shows the world that in the end, big government was no match for the little nun from Iowa.
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Camayd-Freixas, is a professor of modern languages at Florida International University.
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Copyright (C) 2009 by the Iowa Forum. 10/09

Monday, July 27, 2009

A Strong Case for Sotomayor


IOWA FORUM

By David C. Baldus

Now that the Senate has finished its hearings on the confirmation of Judge Sonia Sotomayor, the next steps in this process are critical to all Iowans. Senators Grassley and Harkin will soon execute one of their most important constitutional responsibilities – voting to confirm the lifetime appointment to the Supreme Court.

Judge Sotomayor is a highly qualified nominee who will keep faith with our nation’s constitutional values. Iowans should value someone who is moderate and measured in her rulings.

President Obama has chosen someone who is superbly qualified and endorsed by the American Bar Association. Judge Sotomayor has outstanding legal credentials and she understands that upholding the rule of law means going beyond legal theory to ensure consistent, fair, commonsense application of the law. We Iowans understand the need for someone who respects fair application of the law for all.

Judge Sotomayor would bring more federal judicial experience to the Supreme Court than any justice in 100 years, and more overall judicial experience than anyone confirmed to the Court in the past 70 years. She has been a big-city prosecutor, a corporate litigator, a federal trial judge on the U.S. District Court, and an appellate judge on the Second Circuit Court of Appeals.

Before she was promoted to the Second Circuit by President Clinton in 1998, Judge Sotomayor was appointed to the District Court for the Southern District of New York by President George H.W. Bush -- with a show of bipartisan support that proves good judging transcends political party.

In fact, our 41st president recently spoke out against Judge Sotomayor’s few detractors, saying, “I think she’s had a distinguished record on the bench and she should be entitled to fair hearings.” I couldn’t agree more -- after all, fairness is what this is all about.

The Supreme Court needs more fair-minded members such as Judge Sotomayor, who is in the mainstream of American viewpoints and is not pushing a political agenda. We need judges who will uphold our Constitution and the law to provide equal justice and protect personal freedoms for everyone in America, regardless of wealth, status, or popularity.

Now it’s time for the Senate to vote on her confirmation. Sotomayor should be seated before the August recess to allow her time to prepare when the Supreme Court reconvenes in September. In nominating Judge Sotomayor, President Obama has chosen someone with the ideal combination of brilliance in the law and a real-world understanding of how legal theory is applied.
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Baldus is a professor of law at the College of Law at The University of Iowa.
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Copyright (C) 2009 by the Iowa Forum. 7/09