Lights Out: The Electricity Crisis, the Global Economy, and What It Means to You

Electricity powers almost every part of our lives. Yet many of us pay little attention to our electricity service. It's something that's noticed only by its absence—such as when service is disrupted, and our water, telecommunications, transportation, and banking systems grind to a halt, and our homes, our businesses, indeed, our daily lives, shut down. Curiously, electricity doesn't hold the headlines or dramatic power of oil, even though the ability to ensure its uninterrupted supply at a reasonable price is even more essential to global survival and prosperity. That's because it is still treated and viewed as a parochial industry, the "local utility," despite the fact that it is being moved and shaken by a sophisticated global energy business, and deeply implicated in global environmental issues.

Written by Jason Makansi, one of the world's most seasoned electricity industry experts, Lights Out calls attention to this dangerous paradox—one that is quietly immobilizing progress—and proposes a comprehensive road map that will put us on a more rational path and help us avoid the serious consequences of an unhealthy electricity infrastructure.

Filled with in-depth insights and practical advice, Lights Out examines our "third-world" transmission grid, one that is in desperate need of upgrading; offers an honest assessment of how to deal with electricity's contribution to global warming; and addresses numerous hot-button economic, environmental, and political issues related to the current debate—from free markets versus regulation to energy independence versus foreign imports. Beyond just uncovering and illuminating the problems, however, Lights Out also presents a comprehensive collection of technical solutions and regulatory reforms from both the productionand demand sides of the equation—a framework forrethinking, rebuilding, and enhancing our entire electricity production and delivery infrastructure.

Divided into three engaging parts, this essential book offers a detailed look at:

• How today's electricity system works—from the extractionof the raw energy source to the electricity-consuming appliances in your home—and what happens if these "supply lines" begin to break down

• Why the strongest, most vibrant economy in the world is increasingly dependent upon a production, transmission, and distribution system that continues to be built for the last fifty years, not the next half century

• What can be done to rescue us from the current path we're on—from embracing new technologies ready for deployment to reformulating business models based on common sense, not market or political ideologies

• And much more

Prescriptive and provocative, Lights Out will redefine the simmering debate on how the world can—and must—act now to head off the global consequences of inadequate electricity service, consequences that could eventually, and more insidiously, wreak greater havoc than the ongoing tensions in world oil markets.

Makansi (president, Pearl Street Inc., a consulting company "focused on all aspects of electricity production and delivery") provides the general reader with a portrait of the electricity industry, addressing the connection of American utilities to the global economy, issues of failing infrastructure, the contribution of electricity production to global warming, and other interconnected issues. He also offers prescriptions to fix the failed deregulation of the 1980s and 1990s, which he blames for the current decrepit state of the transmission grid. Annotation ©2008 Book News, Inc., Portland, OR (booknews.com)

Praise for Lights Out

"Lights Out is a fast paced, no-holds-barred account of what is wrong in our electricity sector and how we might get it back on track, written by someone who has been in the business long enough to know what he is writing about."

—Leonard Hyman, author of America's Electric Utilities: Past, Present, and Future

"Jason Makansi gives us a succinct, insightful view of recent electricity problems. His lively, provocative writing explains the mysteries of the technology, the politics, the regulation, and the market manipulation. Parts of the book may make you mad, but you won't be able to put it down and you will always be learning something."

—Lester Lave, PhD, Professor of Economics and Codirector, Electricity Industry Center, Carnegie Mellon University

"This new work is provocative, factual, and will make you think about the situation we face. It is a must-read for anyone even slightly interested in the adequacy of the U.S. power sector and what the future may hold. Industry, regulatory, and political leaders need to read this to see the possible end results of their decisions."

—Barry Worthington, Executive Director, United States Energy Association

"Jason Makansi's long history in the electricity business has given him keen insights into the inner workings of the utility industry, and his examples and illustrations, based on his personal attempts at demand side management at home with his family, give a lighter background to what is a profound and sometimes alarming thesis."

—Geoffrey R. Egan, PhD, President, APTECH Engineering Services, Inc.

"This book enables even the novice to understand clearly the multifaceted issues facing an electricity-thirsty world. This book lays the foundation for understanding how complex power generation and delivery truly is, and is a clarion call to citizens and consumers worldwide alike to become more informed and more involved."

—Timothy McCreary, President, HF Controls

"This thoroughly researched and well-documented discourse explores the litany of issues plaguing the energy industry today. Lights Out will challenge your critical thinking skills and may cause you to question your position on the issues. More importantly, Lights Out proposes realistic solutions that even our elected representatives can comprehend and should seriously consider."

—Dr. Robert V. Peltier, PE, Editor in Chief, Power magazine

A behind-the-scenes exposure why our electricity system is headed for a state of emergency-and what can be done to head it off

Most people don't realize that skyrocketing global energy demand and economic growth severely affect the supply of electricity. Between production (power plants) and delivery is an antiquated, "third-world" transmission grid that is in desperate need of hardening against breakdowns, terrorist attacks, inadequate carrying capacity, and operational obsolescence. And while electricity doesn't hold the headlines or dramatic power of oil, the ability to ensure its uninterrupted supply at a reasonable price is even more essential to global survival and prosperity. Lights Out is today's most detailed, in-depth examination of this largely unreported looming energy crisis. Written by one of the world's top electricity industry experts, this powerful book covers numerous hot button economic and political issues-free markets versus regulation; energy independence versus foreign imports; nuclear power, global warming, and other environmental issues; and much more. Beyond just uncovering and illuminating the problems, however, it proposes a comprehensive road map of technical solutions and regulatory reform from both the production and demand sides of the equation-a framework for rethinking, rebuilding, and enhancing the entire electricity production and delivery infrastructure. Prescriptive and provocative, Lights Out will redefine the simmering debate on how the world can-and must-act now to head off a global catastrophe, one that could eventually wreak even more havoc than the ongoing oil crisis.

Jason Makansi is the President of Pearl Street, Inc., a consulting firm; Principal of PS Liquidity Advisors, an advisory service for energy technology companies raising capital; and Executive Director of the Energy Storage Council, a public-policy advocacy organization. A prolific author, respected industry thought leader, and seasoned communicator, Mr. Makansi has been analyzing the technological, business, and regulatory issues in electricity production and delivery for over twenty-five years. He earned a BS in chemical engineering from Columbia University. His earlier books include An Investor’s Guide to the Electricity Economy, also published by John Wiley & Sons, and Managing Steam: An Engineering Guide to Commercial, Industrial, and Utility Systems.

Jason Makansi is the President of Pearl Street, Inc., a consulting firm he founded in 2000 focused on all aspects of electricity production and delivery. He has launched multiple businesses serving the electricity industry, including an investment fund, an advisory service for companies raising capital, and a public-policy advocacy organization. A prolific author and respected industry thought leader, Makansi has been researching and analyzing the technological, business, and regulatory issues in electricity production and delivery for over twenty-five years. He earned a BS in chemical engineering from Columbia University. Makansi is the author of An Investor's Guide to the Electricity Economy, also published by Wiley, and Managing Steam: An Engineering Guide to Commercial, Industrial, and Utility Systems.

Preface.

Acknowledgments.

Part One. The Worst-Case Scenario.

Chapter 1. Night of the Living Dead.

Chapter 2. The Production and Delivery Value Chain.

Chapter 3. Around the World, Around Town.

Chapter 4. Preventing the Worst Case.

Part Two. Insecurities, Vulnerabilities, and An Uneasy State of the Industry.

Chapter 5. Why a First-World Country Has a Third-World Grid.

Chapter 6. Living with a Transaction Economy.

Chapter 7. The Brain Drain.

Chapter 8. Environmental Imperatives.

Chapter 9. Houston, We Have a Problem.

Chapter 10. The Impact of Lengthening Supply Lines: How Elastic Are They?

Part Three. Fighting "The Last War," Planning the Next One.

Chapter 11. It's That '70s Show.

Chapter 12. Sticker Shock (Without the Sticker).

Chapter 13. Electricity Storage.

Chapter 14. Coal: Extracting Its Full Value.

Chapter 15. Exercising the Nuclear Option.

Chapter 16. Savvy Consumption, Empowering Ratepayers.

Chapter 17. Distributed Power.

Chapter 18. Redefining the Grid with Real Intelligence.

Chapter 19. The Rest of the World.

Chapter 20. A Vision For The Future: Daydream, Nightmare, or a Good Night's Rest?

Postscript: Personal Accountability.

Bibliography.

About the Author.

Index.