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Bringing Power to the People: The Unlikely Case for Utility Populism

By Kate Aronoff  - Dissent, Summer 2017

One glaring omission in the postmortem handwringing about the 2016 election is the fact that most poor people in America—of all races and genders—simply didn’t vote. They were prevented from doing so by a number of structural barriers—voting restrictions, second and third jobs, far-flung polling locations—as well as a lack of excitement about two parties they saw as having abandoned them.

Enter: twenty-first-century electric cooperatives, a perhaps unlikely player in the contest for power between progressives and conservatives in the heart of so-called Trump country in rural America.

If there’s one thing poor, rural communities tend to have in common, it’s where they get their power—not political power, but actual electricity. Over 900 rural electric cooperatives (RECs)—owned and operated by their members—stretch through forty-seven states, serving 42 million ratepayers and 11 percent of the country’s demand for electricity. They also serve 93 percent of the country’s “persistent poverty counties,” 85 percent of which lie in non-metropolitan areas. REC service areas encompass everything from isolated farm homes to mountain hollers to small cities, with the highest concentrations in the South, the Midwest, and the Great Plains. And they might just offer an opportunity to curb the right and the climate crisis alike.

Nominally democratic, RECs have the ability to transform a sizable chunk of America’s energy sector—one of the highest-polluting parts of our economy. Servicing ratepayers whose top agenda may not be climate change, the push to integrate renewables into RECs’ energy mix nonetheless grounds the transition away from carbon-intensive fuels in something more material: energy bills. Member-owner reformers dotting the map of red and rural America are already waging fights over their cooperatives on two fronts: for basic representation and for energy efficiency. Their work—combining a zeal for small-d democracy with one for bringing down emissions—could hold the key to making sure the transition away from fossil fuels includes some of the poorest places in the country on the ground floor. Crucially, it could also help extend our much heralded clean energy revolution beyond liberal enclaves like New York and California. If successful, reformed RECs could give progressives a much needed foothold in places the Democratic Party has long since abandoned. They might also help greens refocus fights onto pocketbook issues.

Understanding the RECs’ radical potential, however, means understanding their history. Rural electrification was intended to accomplish one goal: to serve people neglected by the private sector. At the start of the Great Depression, some 90 percent of rural homes lacked electricity. For private utilities (the only game in town at the time) extending power lines to customers spread out over tens or hundreds of miles simply wasn’t worth the cost—especially considering that the vast majority of those potential customers happened to be poor.

Capitalism is destructive and unsustainable: It needs to be replaced

By John Bachtell - People's World, June 6, 2017

This article is based on remarks made by the author at the CPUSA National Labor Conference, May 20-21, in Chicago.

Several crises of contemporary capitalism have reached or are reaching dangerous tipping points. They are rooted in a path of destructive and unsustainable development.

They include extreme wealth and social inequality, job loss and dislocation from automation, and the existential threat posed by the ecological crisis.

These interconnected crises are impacting everything and must be addressed together. And they can be.

But standing in the way are Trump, the GOP and extreme right, and their main support base: monopoly-finance capital, the fossil fuel industry, and the military-industrial complex. Their agenda is intensifying these crises and must be defeated.

This underscores the urgency to build the broadest resistance movement and radically elevate the fight for unity of our multi-racial, male-female, LGBTQ, immigrant and native-born working class and people. This is central to guarantee the working class emerges as leader of the entire movement to break the extreme right political stranglehold and open the way for the challenging, contested, and complex transition to a just, peaceful, eco-socialist society.

The World Needs Big Ideas — Here are 10 from the Far Left

By Mary Lorax - Medium, March 4, 2017

The world is in crisis — socially, economically, and environmentally. The world needs big ideas, people want big ideas, and the Democratic Party doesn’t have any. That’s why Hillary lost — she offered nothing.

Bernie offered some narrative, and some solutions, too — like free college — and that’s why he gained a following, and why he was polling ahead of Trump. But Trump offered explanations for our crises too. And not only that, he offered ideas, BIG IDEAS, as terrible as they may have been.

The radical left has a lot to offer. We have new, innovative, and necessary ideas. However instead of promoting them and developing them, we often get caught up in reacting to an increasingly far-right, neoliberal political landscape — always on the defensive. We need to be developing our own ideas, and creating and sharing visions. We can’t be afraid of presenting bold proposals for fear of them sounding too far-fetched in an extremely right-wing media and political climate. People want big, revolutionary ideas.

So here’s a list of some of the left’s coolest ideas.

Networked socialism: back to the future

By Gabriel Levy - People and Nature, September 23, 2016

Germany, 1888. Karl Steinmetz, a precociously smart twenty-year old student, quit the university town of Breslau with the police on his heels. Steinmetz had been caught up in the crackdown on the Social Democrats, then Europe’s largest socialist movement by far.

Soon after starting university, Steinmetz joined the socialist club, which was banned after affiliating with the Social Democrats. A previous round of arrests had hit a party newspaper, The People’s Voice, and he took over as editor. Soon afterwards, he wrote an article that was deemed inflammatory, and he had to flee arrest.

Steinmetz emigrated to the US, travelling steerage class (i.e. sleeping in the hold). He anglicised his first name to Charles, and soon found work at a small electrical firm in New York. He became an electrical engineer and by 1893, aged 28, had made a key contribution to the invention of alternating current (AC) transmission equipment, working out mathematical formulae essential to its construction.

The electrical industry was in its infancy: the world’s first power stations had been opened in London and New York eleven years before in 1882. This incredible technology made it possible to produce artificial heat and light of unprecedented quality, and to power new gadgets from irons and radios to fridges. It paved the way for automation of factories, and underpinned the communications revolution of telephone and telegraph. Within a few decades a world without it would seem unthinkable to people in the rich countries.

Steinmetz’s work on AC current was crucial to the system’s growth. With transformers and high-voltage AC transmission lines, electricity could travel long distances, and a patchwork of local networks could be unified into regional or national grids.

When the small company Steinmetz worked for, Eickemeyer, was taken over by General Electric, he moved into senior research jobs and ended up as the head of the engineering consulting department. But his glittering engineering career didn’t lead to him abandoning his socialist ideas. On the contrary, he wrote and spoke about how electricity networks would hasten the arrival of a socialist society.

Steinmetz believed that, because electricity can not be efficiently stored, the network’s expansion would inherently compel producers and consumers to cooperate collectively. This would more rapidly usher a socialist economy into being.

“Implied in this argument was a planned economy, run by technocrats who would engineer this cooperation, by deciding which utilities to interconnect and when industries should consume electricity”, wrote Ronald Kline, Steinmetz’s biographer.[1]

Like many reformist socialists, Steinmetz thought that electrical networks, properly regulated by the state, could help to turn massive capitalist industrial corporations into socialist ones.

Back in Germany, and in Britain – where the welfare of urban workers had become a battlecry for many socialists, and liberals – the “municipal socialists” saw provision of electricity, along with e.g. water and sewage services, as a way for local government to constrain the power of private corporations.

But belief in the progressive potential of technology was in no way limited to the right wing.

NY Times Pushes Nukes While Claiming Renewables Fail to Fight Climate Change

By Harvey Wasserman - EcoWatch, July 25, 2016

The New York Times published an astonishing article last week that blames green power for difficulties countries are facing to mitigate climate change.

The article by Eduardo Porter, How Renewable Energy is Blowing Climate Change Efforts Off Course, serves as a flagship for an on-going attack on the growth of renewables. It is so convoluted and inaccurate that it requires a detailed response.

As Mark Jacobson, director of Atmosphere/Energy Program at Stanford University, pointed out to me via email:

The New York Times article "suffers from the inaccurate assumption that existing expensive nuclear that is shut down will be replaced by natural gas. This is impossible in California, for example, since gas is currently 60 percent of electricity supply but state law requires non-large-hydro clean renewables to be 50 percent by 2030. This means that, with the shuttering of Diablo Canyon nuclear facility be 2025, gas can by no greater than 35-44 percent of California supply since clean renewables will be at least 50 percent (and probably much more) and large hydro will be 6-15 percent. As such, gas must go down no matter what. In fact, 100 percent of all new electric power in Europe in 2015 was clean, renewable energy with no new net gas, and 70 percent of all new energy in the U.S. was clean and renewable, so the fact is nuclear is not being replaced by gas but by clean, renewable energy.

"Further, the article fails to consider the fact that the cost of keeping nuclear open is often much greater than the cost of replacing the nuclear with wind or solar. For example, three upstate New York nuclear plants require $7.6 billion in subsidies from the state to stay open 12 years. To stay open after that, they will need an additional $805 million/year at a minimum, or at least $17.7 billion from 2028-2050, or a total of $25.3 billion from 2016 to 2050. If, on the other hand, those three plants were replaced with wind today, the total cost between now and 2050 would be $11.9 billion. Thus, keeping the nuclear plants open 12 years costs an additional $7.6 billion; keeping it open 34 years costs and additional $25.3 billion, in both cases with zero additional climate benefit, in comparison with shuttering the three plants today and replacing them with onshore wind."

Gideon Forman, climate change and transportation policy analyst at David Suzuki Foundation, also shared his dismay on the Times piece:

"The notion that non-renewable power sources are necessary is questionable at best. Some scientists believe that, over the next few decades, renewables could provide all our power. One is Stanford Prof. Mark Jacobson. He has done modeling to show the U.S. could be entirely powered by renewables by 2050.

"Porter is wrong to claim that nuclear produces 'zero-carbon electricity.' If we look at the full nuclear cycle, including production of uranium fuel, we find it involves considerable carbon emissions. Jacobson and his co-author, Mark A. Delucchi, have written, 'Nuclear power results in up to 25 times more carbon emissions than wind energy, when reactor construction and uranium refining and transport are considered.'

"Porter says if American nuclear plants were replaced with gas-fired generators it would lead to 200 million tons of additional CO2 emissions annually. But it's wrong to suggest that nuclear could only be replaced by natural gas. A full suite of renewables—along with energy storage and conservation programs—could meet demand, certainly in the not very distant future.

"Porter suggests that nuclear power can 'stay on all the time.' But of course, nuclear plants, like all generators, are sometimes out of service for maintenance. This downtime can be considerable. For example, it is expected that from 2017 to 2021, Ontario's Pickering nuclear station will require back-up almost 30 percent of the time."

Karl Grossman, professor of journalism at State University of New York/College at Old Westbury, called the Times piece "outrageous." He told me:

"The Times piece continues the paper's long record of minimizing and downplaying—not recognizing and indeed often denying—the deadly impacts of nuclear power. It's been a shameful journalistic dysfunction. As Alden Whitman, a Times reporter for 25 years, told me, 'there certainly was never any effort made to do' in-depth or investigative reporting on nuclear power. 'I think there stupidity involved,' he said, and further, 'The Times regards itself as part of the establishment." Or as Anna Mayo of The Village Voice related: 'I built a full-time career on covering nuclear horror stories that the New York Times neglected.'"

So where do I stand on the Porter piece? Here are my eight biggest complaints:

How to Socialize America’s Energy

By Kate Arnoff, Dissent, Spring 2016

To hear Lyndon Rive tell it, there is a war brewing between the private-sector innovators building the clean energy economy and the utility bureaucrats standing in its way. Rive is the cofounder and CEO of SolarCity, one of the country’s largest solar providers. In late December, the company came under sudden assault from Nevada regulators when the state’s Public Utilities Commission (PUC) unanimously passed a law allowing it to raise the monthly fees charged to solar panel owners by 40 percent. The measure also reduced the amount customers could be paid for excess electricity they sell back to the state’s energy grid. PUC staffers say the move was a defense against an existential threat posed by private solar to the traditional utility model. If solar customers could take advantage of utility grids without paying for it, who would pay for upkeep on power lines and generators? Homeowners installing solar panels on their roofs, generating their own electricity, and selling the excess back to the utility at a profit, the PUC argued, were leading into a “death spiral.”

Solar companies saw the move in life-and-death terms, too. SolarCity retaliated against the PUC’s decision by announcing that it would withdraw from Nevada entirely, laying off 550 staff in the process. Another major solar company, Sunrun Inc., followed suit, cutting hundreds of jobs statewide. The PUC’s decision, SolarCity’s Rive warned Fortune, would “damage the state’s economy, and jeopardize thousands of jobs.” Similarly, he told ThinkProgress, “These jobs can be lost if you have a person [read: regulator] who doesn’t look at the future and only looks at supporting the monopolies of the utilities.”

Whose side to take in Nevada is far from clear. The state’s primary utility company, NV Energy, is owned by Warren Buffett. Two of the governor’s advisers work as lobbyists for the company, and their involvement in the December law’s passage remains unclear. Monopolistic, fossil fuel–based utility companies (which provide about two-thirds of the country’s power) are no friend of the people.

What about the solar companies? Rive is joined on the SolarCity’s management team by Silicon Valley icon Elon Musk, whose vision of the renewable energy future carries a strong libertarian streak. Entrusting the market to achieve the “best solution,” Musk has advocated swapping environmental regulations for a revenue-neutral carbon tax, and sees the disruptive power of private green innovation as the key to averting climate catastrophe. No doubt net metering—what allows solar customers to sell surplus power back to utilities at retail price—is a necessary step for a transition to renewables. But the coverage of the fight in Nevada, stacked unanimously against the PUC, would suggest there’s only one option for a low-carbon future: a free-market paradise for corporate solar.

What other possibilities are there? Beyond Big Solar are a range of ownership and profit structures that complicate the renewables landscape, and could ensure that an economy powered by something other than fossil fuels will be more equitable and democratic than today’s. Energy cooperatives and publicly owned utilities are two promising models that allow for stripping dirty energy from our power grids without doubling down on profit-hungry development. The alternative to a corporate-controlled fuel transition is simple: socialize America’s energy economy.

Getting Serious About Keeping Fossil Fuels in the Ground Means Getting Serious About a Just Transition

By Patrick Young - Counterpunch, April 21, 2016

As the climate crisis continues to deepen and as it becomes less and less plausible that current efforts to curb global warming will even come close to preventing our earth from crossing the 2 degree Celsius ‘red line,’ the climate movement has shifted towards a bolder vision for climate action. Virtually every pole of the climate movement has evolved towards a set of bolder, more urgent demands and the mantra ‘keep it in the ground’ has begun to dominate the discussion about fossil fuel extraction and use.

While this bold position certainly reflects the urgency of the threat of climate change, the immediacy of the demand presents a new set of challenges for the climate movement.  What happens to the millions of working families who are currently depending on incomes from jobs in and related to the fossil fuel industry? And what happens to communities whose economies rely on income from the fossil fuel industry and the low income workers as revenue dries up and energy costs rise?

According recent data from the BLS, 761,000 workers are employed in the extraction and mining sector and 116,700 workers are employed in the refining and processing sector in the United States alone. Each one of those direct fossil fuel industry jobs supports as many as 7 related jobs—from delivery drivers, equipment manufacturers, to the clerks at the mini-mart across the street from the power plant that workers stop into on their way to work.  In total, it is fair to say that more than 6 million workers rely on the fossil fuel industry for their livelihoods in the US alone.

If we are going to keep fossil fuels in the ground, what happens to those 6 million working families?

Well, If You Ask Me: The Sun's Going Down in Nevada

By Dano T. Bob - IWW Environmental Unionism Caucus, January 30, 2016

Boy, the state government and utility commission of Nevada sure know how to kill some jobs! In the most recent installment of the corporate fossil fuel utility attack on renewable energy, Nevada just pulled the plug on viable Net Metering for solar energy, thus all but killing the nascent solar industry there.

Here’s the word from GreenTech Media on the decision from December:

“The Nevada Public Utility Commission voted unanimously in favor of a new solar tariff structure on Tuesday that industry groups say will destroy the Nevada solar market, one of the fastest-growing markets in the country.

The decision increases the fixed service charge for net-metered solar customers, and gradually lowers compensation for net excess solar generation from the retail rate to the wholesale rate for electricity, over the next four years. The changes will take effect on January 1 and will apply retroactively to all net-metered solar customers.

The broad application of the policy sets a precedent for future net-metering and rate-design debates. To date, no other state considering net-metering reforms has proposed to implement changes on pre-existing customers that would take effect right away. Changes are typically grandfathered in over a decade or more.

“While the people of Nevada have consistently chosen solar, the state government today decided to take that choice from them, and damage the state’s economy,” said SolarCity CEO Lyndon Rive.

In July, NV Energy proposed reducing the net-metering credit by roughly half — to 5.5 cents per kilowatt-hour from the current 11.6 cents — to better reflect the cost of serving solar customers. The plan would have established a three-part structure made up of a monthly basic service charge, a demand charge and an energy charge.

According to The Alliance for Solar Choice (TASC), NV Energy’s proposed rate would amount to a $40 monthly fee for most solar customers, who typically save $11 to $15 per month on their electricity bills, thereby eliminating all savings.”

As a radical, I can’t say I love SolarCity particularly. As Elon Musk’s cousins venture into the solar economy, it is a leasing based model instead of ownership, with lots of the benefits going to the company with a lesser upfront cost to customers for installation.

But, “green” jobs are “green” jobs and the solar market in sunny Nevada was booming! Whatever the faults of Solar City’s capitalist owners, it’s the solar workers who’re suffering at the hands of this policy change.

From Climate Crisis to Solar Communism

By David Schwartzman - Jacobin, December 1, 2015

IWW EUC Note: readers should be aware that the term "communism" here does not mean "bureaucratic state capitalism", and can be inclusive of ecosocialism, post-scarcity-anarchism, and/or green syndicalism (depending on one's implementation of the ideas discussed here):

The proposals elites are offering at COP21 wouldn’t halt climate change. What would a socialist solution look like?

Jacobin Editor's Note: Leaders from 147 countries have assembled in Paris for COP 21, the most important climate summit since the 2009 Copenhagen meeting. But climate justice activists worry the result will be the same: platitudes and handwringing, with no firm commitment from Global North countries to drastically curb carbon emissions.

What, then, would a just solution look like?

David Schwartzman, a biogeochemist and professor emeritus at Howard University, has been thinking and writing about climate and energy issues for many years. He recently spoke with Jacobin about the state of the climate crisis, the connection between global warming and the military-industrial complex, and why “the communist horizon in the twenty-first century, if there is to be one, will be solar communist.”

What is the current consensus on the climate crisis?

According to Climate Interactive — a major monitor of climate change — based on public commitments from the major carbon-emitting countries, projected warming by 2100 will be 3.5°C (6.3°F), or 1.5°C above the 2°C warming limit (above the pre-industrial global temperature) agreed upon at the 2010 Cancun Climate Change Conference. The United Nations now gives a somewhat lower projected warming of 2.7°C (4.9°F).

Moreover, some leading climate scientists now think that even the 2 degree limit is too high. For example, NASA climate scientist Jim Hansen describes the 2 degree limit as a “prescription for disaster” because of projected impacts such as sea level rise and acidification of the ocean. His assessment is reinforced by a newly published study in the Proceedings of the National Academy of Sciences. This evidence reinforces the long-term demand of many poor countries for a 1.5 degree limit.

What about fossil-fuel reduction? Is that making an impact?

Roughly 60 percent of greenhouse gas emissions come from fossil-fuel use, with coal, natural gas (due to methane leakage into the atmosphere), and tar sands oil having the highest carbon footprint. Conventional liquid oil has the lowest carbon footprint, about three-fourths that of coal. (The other greenhouse gases derived from human activity include nitrous oxide, the breakdown product of nitrate fertilizer, with methane also coming from agriculture.)

China is the world’s leading carbon emitter, almost double that of the second-place United States.

The big three — China, the US, and the European Union —produce 55 percent of global carbon dioxide emissions. China has committed to leveling off its emissions by 2030 (using carbon emission trading), while the US promises to reduce its greenhouse emissions 26–28 percent by 2025 relative to 2005 emissions.

As Naomi Klein has recently argued — citing the assessment of the Tyndall Centre for Climate Research — the US goal falls far short of what is required for even the 2-degree goal, which would require reductions of at least 8 to 10 percent per year.

Projected warming, in combination with lackluster efforts to cut emissions, has created an imminent crisis. This is the reality check for serious activists. Any remaining possibility of keeping warming below 2°C will require rapid and radical cuts in global carbon emissions — starting with the fossil fuels with the highest carbon footprint — and the simultaneous creation of a viable global wind and solar power infrastructure.

This is What Energy Democracy Looks Like

By Sean Sweeney - Trade Unions for Energy Democracy, February 25, 2015

With climate change looming, we are facing an energy emergency. How can unions fight for change?

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