NEMA Currents

NEMA Staff attend DOE Smart Grid workshop

2008-08-18T15:18:00Z

Two NEMA staff members, John Caskey from the Industry Operations and Eric Hsieh from Government Relations, participated in the Department of Energy’s Smart Grid Implementation Workshop. The objective of the workshop was to develop metrics for measuring progress toward the implementation of the Smart Grid. More than 140 experts from utilities, equipment manufacturers, state agencies, universities and national laboratories attended.

Teams of attendees worked to develop metrics for seven specific smart grid characteristics including:

Enable active participation by consumers
Accommodate all generation and storage options
Enable new products, services and markets
Provide power quality for the range of needs in a digital economy
Optimize asset utilization and operating efficiency
Anticipate and respond to system disturbances in a self-healing manner
Operate resiliency against physical and cyber attack and natural disasters

According to the summary report from the workshop, examples of potential metrics for the seven smart grid characteristics include:

Percentage of customers capable of receiving information from grid operators and the percentage of customers opting to make electrical use decisions based on that information
Percentage of distributed generation and storage devices that can controlled by the grid operator
Number of smart grid products for sale that have been certified for end-to-end interoperability
Percentage of grid assets (e.g. transmission and distribution equipment) that are monitored, controlled or automated

The next steps are to refine the metrics and develop methodologies for measuring progress toward smart grid implementation. The DOE will then use the metrics to define the research, development, demonstration, analysis and technology transfer activities it will undertake as authorized by Title XIII of the Energy Independence and Security Act of 2007. A fundamental conclusion of the workshop is that there is an urgent need to provide educational materials about Smart Grid that contains consistent definitions and concrete examples for state utility regulators, environmental groups and consumers.

Gas Prices Down....But for How Long?

2008-08-18T14:41:00Z

Anyone who fills up their gas tank on a regular basis has undoubtedly noticed that gas prices have dropped over the past few weeks. Even with this lull, don't let this drop in price ease your mind that they will stay that way. According to the Energy Information Administration (EIA), under the Department of Energy, gas prices will only follow this trend for a short time. In the EIA's Short-Term Outlook report, it states that gas prices will fall only in the short-term. After this short respite, prepare yourselves for increases in oil prices from increased demands that the winter seasons brings.

The report states; "Residential heating oil prices during the upcoming heating season (October though March) are projected to average $4.34 per gallon compared with $3.31 during the last heating season, an increase of about 31 percent."

What will help smooth the "peaks and valleys" that accompanies oil prices? Wide-spread adoption of energy-efficient technology. The world's need for oil will not be eliminated overnight, but the increased use of energy-efficient technology will wean everyone off the dependence for oil.

Beijing Olympics and Making Progress

2008-08-16T03:53:00Z

Looking out of the window on this date in 2004, here is the picture I took from the NEMA Beijing office that we had opened a few months earlier:

Yesterday, our NEMA Beijing colleague Jia Ke took this one from the same window:

During the interval, while the construction crews converted an urban redevelopment site into a latter-day world famous landmark, we’ve assisted over forty member companies establish, enhance, and expand their business presence in the Middle Kingdom. From answering day to day questions, to getting NEMA standards adopted in China, to solving certification problems, to setting up and taking members to a series of business visits, you name it, we’ve done it. Who’s next? Congratulations People’s Republic of China on a fantastic 2008 Olympics! Congratulations all you exceptional athletes who make us all want to get out and do a little exercise. And congratulations NEMA members who have worked so hard to succeed in this relentlessly expanding marketplace. Btw, talk about a blue sky day………..nice pic, Jia Ke.

A (Brief?) Sigh of Relief

2008-08-15T19:51:00Z

With inflation hitting a 17-year high (subscription required) and foreign economic growth tanking (subscription req'd) (not to mention another military conflict breaking out), things economic certainly could be better. Of course they could be much, much worse.

The advance estimate for real GDP in the second quarter showed growth of nearly 2 percent. While hardly impressive, it is likely that this number will be revised up to possibly 3 percent. Manufacturing output increased for the second consecutive month in July and the gains were widespread; closer to home for NEMA, electrical equipment output remains solid.

An impressive rally (subscription required) as of late by the dollar versus the Euro and other major global currencies has had many desirably effects, particularly taking the edge off import price inflation and the dollar hedging benefits of investing in oil and other commodities. Plus, overseas travel just became a little more affordable. Whether the dollar rally puts a dent in export growth, which has been a critical driver of the broader American economy, remains to be seen, but it will be closely watched.

Perhaps one of the lesser-noticed pieces of good news has been the significant retreat in commodity prices. Yes, crude oil spot and futures contracts are still fetching over $110 per barrel, but the pace at which gold, oil and natural gas prices have declined in the last few weeks has been a surprise. Some fear that falling prices will stop the drive towards reducing energy consumption dead in its tracks, but I disagree at least with respect to the near term. American consumers appear to have changed their habits enough that these shifts will stick this time around (see here for another example). If that were not enough, the supply side of the energy equation has already responded. Prices are high enough to encourage exploration and extraction in areas that were considered too expensive just a couple of years ago.

VAP on Parade

2008-08-14T13:07:00Z

Once again, as is done every two years, hundreds of hours of valuable time have been expended to solicit, respond, collate, and distribute a report on the status of the adoption of IEC standards by the 21 member economies of APEC, the Asia Pacific Economic Cooperation. Everyone in the private sector involved in this years’ effort, one that covered 168 targeted IEC standards, has remarked to anyone who would listen that the effort has contributed not one iota of additional electrical safety to the millions of consumers in these economies nor to the commercial success of manufacturers who provide the products. One wonders, why are we doing this?Sorry – what is VAP, you ask. Voluntary Action Plan, which outlines each member economy’s alignment of their standards with “international” standards. So, what’s the goal here – safe electrical installations or high VAP alignment scores? Ask the millions of parents, administrators, fire officials, etc. who see the big picture and they will tell you safety trumps alignment hands down. The APEC bureaucrats, on the other hand, take great delight in reporting their high alignment numbers, and equal delight questioning the not-so-stellar alignment of USA.To understand what is going on, and the distortions that are reflected in the VAP report, one has to have some understanding of the requirements of a safe electrical system, namely an installation code, product standards, testing and certification, and inspection. Omit any one of these and the safety of the system is suspect. Every safe and reliable electrical installation requires dozens of different types of products to function, from wires and switches, to protection devices and outlets, to conduits and junction boxes, to…you get the point. So we look at the compilation of the statistics and see that some economies only need 16 different standards to do all of this (!) and get a 100% alignment score, while others require dozens of standards (and effective product certification and effective inspection) but get low marks because many of their standards do not reference IEC standards. As if they are the only international electrical standards in play. What else are the statistics failing to disclose? That manufacturers of a number of products that seek IEC inclusion are being denied it because of antiquated IEC rules that permit an entrenched network of standards gurus to refuse to take action to include all the world’s safe products in IEC standards, or regularly stymie the efforts of those dedicated individuals who sincerely think their products should be available to consumers world-wide based on their history of safe, reliable performance. Of course this provides obvious commercial benefits to those who can maintain the status quo.

Voting -- It's Your Decision

2008-08-13T17:27:00Z

"The penalty that good men pay for not being interested in politics is to be governed by men worse than themselves" (Plato, 427-347 BC). As the November 4th election approaches, voters will be bombarded with campaign ads, flyers, web videos, emails --- all aimed at promoting a particular candidate and his or her position on issues. Of course, to vote one must be registered and if you cannot vote in person on election day, you have the option of voting early via absentee ballot. To find out the deadlines for registering in your state, and how to get absentee ballots, you can visit http://www.bipac.net/page.asp?g=nema&content=voter_reg. Remember what Plato said.

Taking away your privacy?

2008-08-13T17:24:00Z

As amazing as it sounds, there are candidates running for office that support certain union efforts to take away your right to vote in private when deciding on whether to join a union or not. By a 4-1 majority, employees support the current federally-supervised private ballot system, but the so-called Employee Free Choice Act would eliminate that right and replace it with a system where your vote in no longer private but made public to your employer, union organizers, and fellow workers. Such a change could result in intimidation and coercion in the workplace on something that is a personal decision. Few realize that the legislation passed the House in 2007, but was defeated in the Senate; however, voters may not be aware that this legislation will be reintroduced when the new Congress comes into office in January 2009. So, you may want to find out more about this attack on privacy and ask candidates where they stand on it. The Coalition for a Democratic Workplace has information at www.myprivateballot.com.

Anticounterfeiting – UL go for gold

2008-08-13T16:25:00Z

Underwriters Laboratories recently unveiled their latest holographic label. The gold hologram will replace the silver hologram that UL has used for the last 12 years. The UL holographic label is used on 32 common consumer product where the risk of counterfeiting is greater, including power supply cords, nightlights and ceiling fans. Almost 20 billion products carry the UL logo, including 1 billion using in the holographic form. The new hologram is designed with higher levels of security in mind. It borrows technology from banknotes including color changing ink and a series of overt and covert security measures designed into the hologram. One of them is a UL symbol that disappears when viewed through the viewing windows on an authenticator card (think 3-D specs!).

The implications for manufacturers go beyond the cost of the labels and have brought some pushback from industry as my colleague Alex Boesenberg reported in a recent blog. UL is responding to industry's concerns by giving manufacturers more time to implement the change and ensuring there will be an adequate supply of the gold holographic labels. Some manufacturers are still unconvinced that the benefits of these anticounterfeiting measures outweigh the additional cost for the holographic label.

Down in the Dumps

2008-08-08T19:53:00Z

Unless you've been living under a rock for the past, oh say 18 months, you might have heard that the housing market has seen better days. Recently, though, opinions have surfaced that it may have finally hit rock bottom and some signs of improvement should be coming within months. For example, new and existing home sales, while still extremely weak, have flattened out and housing inventories haven't grown significantly larger in recent weeks. In news this week, the pending home sales index actually increased 5.3 percent in June and reached its highest level since last fall. On the surface, it was generally a positive report. However, a considerable portion of these contracts can likely be attributed to sales of foreclosed homes that are contributing to the supply glut in numerous markets.

And even still, there are ominous rumblings that inventories could face further renewed upward pressure. According to this article (subscription required), 2007-vintage mortgages are going bad at a faster clip than those originated back in 2006. Needless to say, this will remain a serious headwind to stabilization, much less recovery, for both the housing and credit markets. Indeed, the current housing market freefall is already rivaling what occurred during the dreary early 1980s recession and has spelled doom (or near-doom) for several banks and other financial entities. The correction has been much more abrupt this time around. Back then, the peak to trough movement in new housing starts took over 4 years (1978 to 1982) to fully play out compared to less than 3 years (January 2006 through June 2008, assuming we're close to a trough). Does this mean the broader housing market will rebound faster this time? That is a hard one to pin down, but one thing is for certain it will be a while until one can call it a seller's market again.

Are we really running out of Fossil Fuels?

2008-08-07T13:42:00Z

NEMA's energy efficient products are playing a key role in conserving energy for our country, but this can't take the place of new energy supplies being sought and harvested responsibly within our own territory.

Should we as the most powerful nation on earth really be satisfied with sitting on our hands begging OPEC to pump more and charge less, while our Congress threatens us with increased taxes, via questionable environmental laws such as cap and trade that will only further hinder and stifle our economic productivity and future development? Shouldn’t the U.S. be able to mine and harvest the very resources it has been fortunate enough to have been blessed with in the first place? Can’t we drill and be environmentally conscious at the same time? The rebuttal that seems to be constantly offered is a whinny….”it will take ten years to see any benefit”……well, we still put part of our salaries in 401K’S and IRA’s while not expecting any benefits for 10, 20, 30 or 40 years…..don’t we?

Are you aware that China, India and Cuba have formed a Gulf oil partnership to drill off of Cuba’s coast? Check a map lately? Think about it!

Fact: The U.S. is the only country having proven reserves both within its territory and off its coasts that it refuses to harvest.

What is oil shale? Find out more here http://ostseis.anl.gov/guide/oilshale/index.cfm And here http://emd.aapg.org/technical_areas/oil_shale.cfm