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Green Vrs Red

Courtesy of  Delaware Way

Dear Kavips:

In response to your asking, here is why I went to the meeting in Newark High School for the Power Plant.  My boss made me.  I was pissed off about it because I was suppose to go to my first grader” concert that night, and had to miss it.   I got the call at 4:00 from my boss and was told I had to go there ASAP.  I said WTF for and he said it was important.  I said my daughter is more important, and he said, he could let me go that very day if I didn’t show up for this meeting….

I had to call out of a service call and postpone it till the next day to make the trek up there. and get inside.  I saw a lot of other HVAC vans and many that I trained with so it wasn’t all bad I guess.

Sad thing is, I don’t even want the power plant cause I live downwind from it right off Rt. 4, behind the ShopRite…. I think a lot of others were forced like me to go, because we all weren’t too happy to have to be there… But, gotta do what the boss man says….

Signed…

(your buddy)

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Number one is… Hawaii… I can see that…. it’s a long haul in LPG ships.

Number two is … Florida… Rick Scott, Tea Party. Payback for supporters.  I can see that…..

Number four is… Alabama..  State supported monopoly of one private natural gas company…  i can see that.

But why is Delaware, which is only 100 miles from the cheapest natural gas in the world now being fracked in the Alleghenies, paying more than 47 other states, including the crony deal Alabama has to live with?

The answer is in two words…

Delmarva Power.

State Of Delaware Gets Front Paged On Kos

If Christie laughed at every time he was lampooned, he’d lose weight.

The mess in WV brings this home…   Anytime you allow industry near water, at some point in the future there will be an accident…. Prevention as opposed to monitoring, is the only way to insure no such event occurs

The proposed legislation will be incremental.  It will be minor in scope.  It’s design is to pit the same groups that combined to apply political muscle to push forward both Newark’s contaminating power plant, and the Millsboro chicken processing plant, towards next applying political pressure to diminish and eventually abolish the Coastal Act.  It will be pushed along as good for jobs, taxes, and energy benefits.  However, none of those will receive benefit.  Instead it is designed in a way to open the coastal area to development. The benefits will all go to developers, Surprised?  Developers as we know are very reputable human beings and would never break a law, would never allow any facility to be built which might pollute, in order to make hundreds of millions of extra dollars.

The Coastal Act is Delaware.  If it goes, Delaware again becomes the cess-pool is was before environmental laws were ever dreamed.

As went Army Creek, so goes the entire Delaware coastline….

Time to get busy now… Stir the pot so nothing sticks to the bottom later.

Don’t you hate how everything is in initials today… As if one is supposed to remember what all those stand for….

Cunt Switching Imbeciles sue Damn Norquist Rectal Energizer Conglomerates over Raping Governor’s Gerbil’s Ass*oles.

Perhaps I got it wrong.  Now I have to go look-up other alternatives on the Internet and see what other possibilities could occur.  Are you sure I’m wrong? You are, huh?  Do any of them fit?

Perhaps if one didn’t use initials and came right out and said  “Caesar Rodney Institute sues  Delaware Department of Natural Resources and Environmental Control over Regional Greenhouse Gas Initiative”, we’d save a lot of time…  However the off-line consensus says I nailed it pretty well with the first stab of interpretation….

So what is this about?

Did you ever at work have those smart asses who try to cause trouble by challenging the interpretation of every word in the employee handbook?  Their prime objective is simply to be annoying.  For example if the handbook states that shoes must be worn, they point out that it doesn’t specifically allow for sneakers, and that under some obscure rule or regulation that only they can find, someone once said that sneakers were different from shoes….  Therefor all those wearing sneakers need to come to work in “real” shoes?  And so they force an issue that should have been left unchallenged, for of course sneakers are shoes and everyone knows that, but we have now to go through a long trial and they and the sneaker people have to appear before the arbitrator and waste everyone’s time to decide the obvious, that yes, sneakers are shoes because they protect the feet almost equally….. And therefore much time is wasted over nothing…..

Yeah, this lawsuit is like that…. Very similar to the Constitutional Sheriff’s argument that 2013 put to rest….  The formula is the same. Take an obscure colonial reference, twist it in a fashion so someone could according to that interpretation be acting illegally, bring it up and harass until it goes to trial, then appeal your loss, then appeal that new loss again….  The sole object it to waste time, and draw attention away from doing one’s assigned duties.

Of course or laws are designed so  they have the right to do that… but in balance,  we are also given right, if not duty,  to skewer them royally for all the selfishness and pomposity they exhibit…  Of course as in the work-place analogy, all the exaggeration we do makes little difference in the outcome, for as the ridicule piles on from us, they double down, enabling us to pile even more ridicule upon them…….  Our only benefit is that we get something to mock, to laugh at… And if you live this life and don’t laugh out loud every other minute, your missing out on life my friend….

One of the suitors is a legislator…. Harold “Lost-My” Peterman… a Log Cabin Republican from Milford…. Peterman

Hi. I’m Harold “Lost-My” Peterman and I approve this lawsuit.

So what does all this mean?

Essentially it means the Koch Brothers are  paying to impede Delaware’s entrance into the agreement we have over CO2 with our neighbors, because Koch-heads don’t care how people get hurt as long as they make their money….   That is essentially what this is all over….

Now here is their mixed up, convoluted,  obfuscated,  Rue Goldberg Contraptionalized, attempt to make that money grab look like something else…..

They are challenging its Constitutionality, taking a page right out of Jeff Christopher’s bid to becomes Supreme Ruler over the Fiefdom of Delaware….

They are trying to win friends by implying that environmental controls  were not put in place to protect the environment from money grabbers who just want to make money and don’t care what harm gets left behind….  but instead were put there by “bad,  bad people” who “just don’t like them”, and therefore in fairness they should just … go away…  So they can make more money.

They are also trying to scare the population by making everyone think that energy costs will rise solely because of laws to protect the environment….

Before we jump on them and bust apart their claims,  let’s cover what the Regional Greenhouse Gas Initiative really does…

Most of us don’t know.  In plain speak, it was a way of spreading out the costs of what we will one day have to pay…

This concept is very pertinent at a time we are all sensitive to corporate abuse of our social structure. Wal*wart and McDonalds are paying $7.25 and hour, and enjoying the fruits of that low labor cost while they send their employees off to get food stamps and Medicaid at the taxpayers expense…

We, the taxpayers are subsidizing their business…  Wal*Mart and McDonald’s should be paying for the Food Stamps and Medicaid costs out of their excessive profits….   But since they aren’t… it amounts that they are using government subsidized labor to increase their profit margins, then walking away from their self-created problem….

It is the same with energy…. Essentially we will one day have to pay for our energy’s damage to the environment.  That is a given.  The question is when…  Recognizing this, several states joined in a pool to sort of start assessing power companies some of that cost now, so it would not be a giant shock in the future.

The way it works is that in this region, power companies will have to cut down their emissions or pay a fine.  It is minimal in the first few years and gradually gets tighter over time.  The Power companies if they possibly cannot meet the requirement for a variety of reasons, can do so through credits earned by paying cash to companies who did come in under their threshold of gas emissions…. It’s like if I farted less than you,  and you farted more, you could pay me money for the times I didn’t fart…

It is an arbitrary scheme and that is why it has animosity behind it, primarily from people of “that type” who don’t like arbitrary schemes.  But the contrivance was built to create a marketplace incentive by using that biggest motivating factor ever,… money!   By playing these rules, you can make money by cutting down your greenhouse gases….

To make this lawsuit even more of a moot case, every state is already far under the allowance caps, because cheap natural gas from fracking has replace dirty coal in most furnaces….

The second myth being propelled by Koch-heads is that this will cost you, the customer, more money…  They  play on our common sense notions that if things cost more to get, the price goes up….  Well, you can readily see with energy, … that is not necessarily so….

Let’s use gasoline as an example… Right now at the pump gas is at $3.45 to $3.55 a gallon for regular.  I saw both on my return from church this Sunday.   The last time prices were that high, a barrel of oil cost $107.  It now costs $93.   Yet, when it was at $98, the pump prices were between $3.20 and $3.30….

The point being made is that energy prices, because we need them no matter what they cost, are set by demand, not supply…   Holiday Travel pushed the price up the week before Thanksgiving, and  Christmas and New Year’s pushed it up now…  Especially with fracking, acquiring energy is rather cheap.  Some wells produce at a cost of 19 cents a gallon.

So who gets hurt, is not the consumer, if costs go up…  The money makers in the middle are the sole ones who have to eat their profits.   Which is exactly why the Koch Brothers are funding this nuisance lawsuit to cast aspersions upon the Greenhouse Gas Initiative….

If  the Koch Brothers earn $3.26 cents off of every gallon sold at $3.45,  they will fight to make sure that doesn’t drop to $3.25, or $3.24, or $3.23 or lower….  People purchasing energy will not be affected by the Initiatives.  The Corporate Investors will.   Unfortunately as we can see with today’s gasoline, even when energy prices plummet, we the consumer, don’t get the benefit… The Hedge funds do…

So the bottom line is this….  The Greenhouse Gas Initiative save us money… They put the cost of the problem upon those who are creating the problem, and not leaving it for us to pay from some other account at some future date…  Corporate profits in the energy business are too high, and have been since deregulation.    Those who are making money off of polluting the world, off of blowing CO2 into the air,  should be able to make money and pay for the polluting of the world… The Koch Brother think differently, and that is why they are paying for this lawsuit…

It is ironical that a Delaware legislator from Milford, which does not have a huge power plant in their backyard as to those poor souls at Millsboro,…. would sell his soul and the souls of his constituents, just for some Koch Campaign money come his next election…..

Bottom line, is if the Brandywine Zoo put baboons in a glass enclosed Monkey House, and then suddenly no one came into see them, ever,  they  craving attention, would probably file a law suit just exactly like this one….

John Young alerted me to this line in the new election law…..

§ 7558. (Municipal) Election results; recounts; contests.

(a) A person certified as being elected shall not take office before the seventh day following certification of the election.

The commissioner of Delaware’s elections certified  the Newark Election on December 3rd, 2013….

December 4th, 2013    Day One

December 5th, 2013    Day Two

December 6th, 2013    Day Three

December 7th, 2013    Day Four

December 8th, 2013    Day Five

December 9th, 2013    Day Six

December 10th, 2013 Day Seven……..

On December 10th, by law, the  new mayor can be sworn in……  That is this coming Tuesday btw and today is Sunday. December 8th…

(In case you don’t know she was sworn in on December 3rd, 2013. )

The real issue is how can anyone run an election and be in such violation of state code?  Either the code is bogus, or rendered meaningless by lax enforcement, or completely ignored by our election overseers, or completely off the Commissioner of Election’s radar and whatever the law states is in another solar system to her.

How can anyone in the computer age, run and win a campaign, and get sworn in, before the law allows?

What kind of state is this, where law is routinely ignored if your position on a controversial issue, aligns  with those wealthy enough to can throw $45,000 of illegal money to throw a town’s election?

The complaint here is not so much about Polly; it is leveled precisely  the Delaware Chamber of Commerce and like groups for attempting to run things their own way, even if a Delaware law stands in their way…..

The law was broken.  Sp what are we going to do about it?

Electric Costs by State

Over the past year, Delaware has experienced one of the highest increases in electrical power costs to commercial customers. So much so, that to get a new business to even consider moving in, we had to allow them to build their own power plant because our electricity is just “too” expensive.

The sole reason Delaware ranks so high is that our Public Service Commission rolls over and approves everything Delmarva asks, no matter how ridiculous…. The laws of supply and demand, do not apply here.

Currently they are considering a huge increase and Delmarva Power even says its reason, is to stretch their increase in profits over a wider stretch of time. Instead of getting hit with a sudden charge because Delmarva Power desires higher profits at some point in the future, they wish now to stretch that increase over a wider time span. Not that they need to pay for anything already spent. That is done. But they want you to now pay for their profits in advance of what they predict they will have 10-20 years up the road… Is this mad? No, it isn’t when you have a Public Service Commission that rubber stamps everything you ask for.

(If your boss ALWAYS granted every request you made) would you be ticked in the head to ask for a million dollars a year? Of course not. You’d be insane, NOT to do it!

So here is their argument. The customers should pay us all this extra profit now, and that way, the corporate entitiy won’t have to charge you as much for their steep growth in profit over the next 10-20 years….

Yep. That is their sole argument, and to all intents and purposes, the Public Service commission is going to rubber stamp that request and pass the bill to you.

No business will want to invest in a state that penalizes its users of electricity.

The price per kwh to commercial users in Delaware jumped from $9.85 to $10.41 (5.68%).… The price to industrial users in Delaware jumped from $7.70 to $8.46.(9.8%).. For the curious, residential costs actually dropped 13.91 to 13.38 cents per kwh. (-3.8%)

Costs Electric 2013 Delineated

If as a data center business you were to use 200 MWh of power, that percentage of increase alone would have cost you (.56/kwh X 1000 kwh/MWh X 200 MWh = $112,000) of extra money EVERY SINGLE HOUR!. Put bluntly, Delmarva Power’s rate increases are costing Delaware its jobs.

What if you moved to PA? YOUR RATES DROPPED 2 CENTS PER COMMERCIAL AND 19 CENTS INDUSTRIAL. How about expensive New York? YOUR RATES DROPPED 57 CENTS IN COMMERCIAL AND 61 IN COMMERCIAL! Surely New Jersey went up you ask? INSTEAD OF DELAWARE’S CLIMB OF 56 CENTS, NEW JERSEY SQUEAKED UP 1 CENT IN COMMERCIAL AND 29 CENTS IN INDUSTRIAL! To round out the Middle Atlantic, Maryland and Virgina both dropped their commercial rates as well from 2012 to 2013….

Delaware’s costs are the 15th highest in the nation.

If you are paying $112,000 more dollars in Delaware PER HOUR,… there is no tax offset that can come even close to matching that expense.

Which is why Delaware is now ranked at the bottom of job growth and business environment.

In catering to one’s friends within the inner social circle of Wilmington, we have chased away all other new business investors.

PSC is holding a public hearing next Wednesday, Oct. 16 at 7 p.m., at the University of Delaware’s Arsht Hall, 2600 Pennsylvania Ave., Wilmington. This topic will be discussed.

Just curious, would you invest in a state that allows its power to increase costing you $112,000 of extra money per hour?

I would think not. Unless of course you could build your own power plant, and cut out the middle man who uses his monopoly to outlandishly sky-jack his prices…. Then, and only then, does moving into Delaware become commercially feasible….

One should certainly hope the Public Service Commission understands that what it chooses or does not choose to do, creates huge ripples that then race across Delaware’s economy.

Pushing the data of the Moody’s Analytics regarding Delaware being the only bad risk in the country, some other illuminating factors emerge.  The revenue data taken from our tax receipts over the past two years, portends to ever decreasing departmental budgets state wide in 2013 and 2014.

This problem will be compounded further, by this fourth quarter competing with the largess of last fourth quarter.  If you remember, incomes were very high in December 2012, as a lot of capital gains were cashed in to beat the tax increase beginning in 2013.  There was a huge flood of tax revenue that pushed up estimates, both in personal and corporate income taxes.  The December revenue was 23.3% higher than December 2011.

That largess won’t be coming in this year and we will have to deal with the difference.

Second, due to impingements to our economy, our tax revenue will be under last year.

Delaware employment is growing slowly.  Yet there are only 18 states with a total unemployment (U6) higher.  As a result, personal income tax revenue is down.  This was compounded by a tax decrease recently given to the top 1% of earners. Passage of this tax rate decrease, means those who were the only people actually gaining income, will now, not be paying any of their increases into the treasury, as is being required of everyone else.

Across the nation, total state tax revenues first quarter 2013 rose 6.8%.  Across the nation state income taxes grew 18.4%, state corporate taxes grew 9.4%, and state sales taxes grew 5.5%  ….  Delaware does not have a sales tax.

Only 6 states had declines in personal income tax that same quarter.  Delaware led the pack as having the largest decline at 15.8%. States less shy about raising taxes, California and New York had the highest gains.  $6.3 billion and $1 billion respectively.  Incidentally as correctly predicted by the kavips economic model, both economies are thriving.

Based on withholding data, Delaware’s amount withheld dropped from a 9.3% increase in last quarter 2012, to a 2.0 increase in first quarter 2013, both over the previous year.  At the outset, the potential exists for a loss of that 7.3% difference in fourth quarter 2013.

The wealthy pay in the form of estimated payments.  They don’t use withholding.  The average estimated payment’s percentage increase over 2012, was 12.2%.  However the 4th quarter payment was a jump of 23.3% over the fourth quarter of the previous year.  Meaning the average of the previous 3 quarters was a negative or -3.7% from the year 2011.  Only that windfall of the fourth quarter, driven primarily by federal tax changes, gave Delaware its positive increase in estimated payments for 2012. Bottom line.  We were lucky. First quarter 2013, they are up 7.9% in comparison.

Corporate tax.  Overall across the nation, corporate tax increased by 9,4% this first quarter of 2013 over the same quarter last year. 30 out of the 46 states that have corporate income taxes showed increases. 16 of them were double digit increases.  Virginia suffered the largest decline: $87 million.  New York showed the biggest gain:  $239 million.

Tax Revenue is directly related to economic growth.  Growing economies increase personal income taxes and sales taxes as income gets spent. Delaware’s economy is estimated by the Federal Reserve of Philadelphia for the three months prior to June 2013, to lie between the growth rates of 0.1% and 0.5%.

Take the first quarter of 2013.  It is a harbinger of things to come….  In Delaware, the amounts collected Jan-March.

  • Personal income tax:  2012 = $411 million   2013 = $346 million …. drop of $65 million or -15.8%
  • Corporate income tax: 2012 = $65 million    2013 = $73 million …. increase of $8 million or 12.3%
  • Total with other (fees) included:  2012 = $956 million  2013= $883 million…. drop of $73 million or -7.6%….

Our current state budget is running $73 million in the red based on actual versus revenue projections.  And this does not even include the fourth quarter drop off. Delaware was one of only 5 states capturing less personal income taxes in 2013’s first quarter than in 2012. Rhode Island, Indiana, Utah, West Virginia were its team mates. Delaware lost $65 million (-15.8%); West Virginia was second losing a comparative paltry $21 million. or -5.4%.  The others:  Rhode Island -$13 million (-6.4%); Indiana -$5 million (0.5%); Utah -3 million (0.6%)

It was estimated that over the year Delaware’s tax decrease would cost the state $70-80 million.  if averaged per quarter, that would be $17 to $20 million lost to the state every 65 working days.

One would conclude that a big part of Delaware’s state revenue problem is a direct result of that tax break we handed over to the top percent of Delawareans…. There are 15 states with higher top marginal tax rates than Delaware.  All but one of them (Idaho) are showing better growth than Delaware.  The belief that lower taxes creates jobs and better state economies does not agree with reality experienced by other states on a daily basis.

Again, the national economy as a whole is looking better.  Delaware is looking like the exception.  After the Great Recession the national total of state revenues dropped for 5 consecutive quarters. The national total of all state’s revenues has since grown 13 consecutive quarters…

The same criticism that applied to Obama after the Obamacare vote, applies now to Markell after the SB 165 vote.  Instead of trying to fix something that was working fine, one’s attention should have been spent on all that which isn’t (working fine)….

Recommendations for 2014:

Go to multiple tiered tax rates:

  • 10% on $1 million or more
  • 9% on $500,000 or more
  • 8% on $250,000 or more
  • 7% on $125,000 or more
  • 6.75% on $60,000 or more
  • Spend most of our money on Delaware’s people.  Hire empty positions. Keep the money here in state as much as possible.
  • Cut out from budget most consulting fees for out-of-state entities.
  • No hiring of outside specialists or corporate buddies.
  • Add more teachers, firemen, policemen where needed.
  • Push for building an offshore wind farm; override all Pepco’s objections.

Occasionally something that you looked at many times, but have never seen, suddenly jumps out and changes your whole perspective. For example, I had always thought that as far as the Revolutionary War went, Delaware’s only claim to fame was that the new flag was first flown in battle on Delaware’s soil…….

Not so! Two hundred thirty-six years ago today, things were really jumping in these parts. It may seem like a long time ago to most of us, but in reality it is only a string of three ten year olds who each knew someone who was ninety. In the vernacular, that means that most of us know someone, who themselves knew someone who actually had spoken to someone, who was alive during the Revolutionary War!…… Whoa…….

August 25, 1777 close to 300 ships sailed up the Chesapeake Bay, anchored off off Elk Neck, Maryland, and began disembarking. That has been called the largest fleet ever assembled off either of the America’s coasts. To put that number into perspective, the famous Spanish Armada, consisted of a meager 130 Spanish ships. The most-oft talked about Battle of Trafalger, consisted of a combined total of some 60 ships. Modern historians can get a perspective by comparing those 300 ships to the 700 off of Dunkirk or the 900 off of Normandy…….

It must have been quite a sight to stand on the top Iron Hill and see over 300 tall masts sailing to defeat you. And on board those ships, were 15,000 solders disembarking to begin marching towards your capital city….That’s close to the total number of women living across Greater Newark in 2010.

Were we living 236 years ago, we would all be on edge! Anticipating a major battle on Delaware soil, 11,000 continental troops were moved into Delaware and bivouacked at what used to be known as Red Mill Neck, and now is near the Marshalltown bridge over top of Red Clay Creek.

The British moved in steps, out of Elkton to Gray’s hill, then up the road to Newark. One account said their line stretched from Glasgow to the bridge across the Christiana, where the I 95 and 896 interchange is today. They marched through the village of Newark, and then advanced parallel to today’s Kirkwood highway and camped at Milltown, just two miles from the American Camp in Newport. For one day, they stared each other down. The potential existed for a pitched battle to have occurred on Delaware soil. When no attempt was made by the British, Washington got scared that he was to be flanked to the north. Had General Howe chosen to do so, Washington and the Continental Army would have suffered a catastrophic defeat. At 2 am, the Continentals forced marched north to Chadd’s Ford, thereby occupying the high ground, and then on the following day, occurred the Battle of the Brandywine, the second to last major battle to be fought by Washington until Yorktown, four years latter.

Just a small footnote:  it was in Delaware  where General Pulaski, from Poland, met Washington while in Wilmington and was placed in charge of developing the calvary.

Although only a small skirmish actually occurred in this small state, with just a few things happening differently, a major conflagration could have happened that could have ended the war for the Americans.

Needless to say, it was relatively scary “in these parts” just 11 score and sixteen years ago.

Delaware's Engagement 1777 August 25
Full Resolution

Wind Potential Offshore USA
Map Courtesy of US Dept. of Energy (right click for full image)

As one can see there is a lot of competition for offshore wind… At one point in time, Delaware was poised to become the center of offshore wind manufacturing. Unless we move quickly, that place in history will be lost….

And just like our once ground-breaking New Castle- Frenchtown Railroad, although considerable investment was put in place to get it running, the rest of the world quickly passed us by…. because Delawaeans did what Delawearns do… sit on their hands…

We need to court GE with all the good reasons why they should build their new 5.0 offshore turbines here in Delaware. We need to spawn the development of an offshore tower construction company set up in Lewes. We need the MAPP lines connecting DC to our coast to continue forward quickly without interruption. Furthermore, we need to get NRG moving on building Bluewater Wind as fast as possible. Finally we need Delaware’s political contingent, including the Vice President, to create the tension always necessary to make bureaucratic things “happen”..

Time is wasting; we are sleeping.. The alarms gone off; it’s time to WAKE UP!.