Will the USA Democrat Republic ever understand the wisdom of diversification of energy sources requires a long-range plan?

The Chicago Tribune article titled: Illinois running out of time to save jobs and protect energy future, reports the reality of time and the need for a long-range energy plan for diversification of available energy sources for any State in the USA.

The Purpose of This Post

Is to relate and ancient wisdom verse, an idiom, and proven successful investment advice for investors of any product or service to both profit and survive the future.

King Solomon

Since no one knows the future, who can tell someone else what is to come? (Ecclesiastes 8:7)

Definition of diversification

1: the act or process of diversifying something or of becoming diversified : an increase in the variety or diversity of

2a: the act or practice of spreading investments among a variety of securities or classes of securities I’ve emphasized bond mutual funds because they’re so useful for investors of average means.

b: the act or policy of increasing the variety of a company’s products

Idiom – Build it and they will come

What’s My Point?

Energy costs will vary over time because of supply and demand.

At one time nuclear power was the cheapest as well and still is the cleanest environment source of energy in Illinois.

For example, gas used for ovens in homes and industry was in short supply before fracking was discovered.

Coal at one time was delivered to homes and factories for energy but is now considered the least desirable source of energy for the environment, yet it still is a source of energy.

Wind and solar are the current favorite of solar are more costly and cannot be dependent upon because of Illinois weather.

Water Dams or lake tides can produce only limited energy.

My point is energy is vital to the State of Illinois for both home and industry to attract industry and jobs. Costs will vary but costs can become meaningless to users when energy is interrupted because of weather or natural disasters such as what is now being experienced in Mississippi.

In My Opinion

Illinois legislators need to face reality of energy and develop long range diversification of energy sources for the same reason investors diversify to reduce risks.

As for costs and environment, all various energy sources need is the State to legislate to allow h a long-range plan to allocate minimum and maximum State allocation guarantees to energy providers, so as to allow investors to remain in business and attract investors with guaranteed interest payments.

Amortizing all energy costs to provide one price will allow for guarantees of energy output to smooth costs from various types of energy sources.

As time goes by, the energy allocations to be adjusted with the percentages of energy by various providers to create price competition and a means for energy producers to obtain investment funds and provide needed energy.

Since reality is that no one knows the future. Yet we do know if we put all our eggs in one basket the risks increase.

Hopefully, as time and science vary to hopefully provide less costly and cleaner sources of supply energy which may or may not ever occur in the future.

In other words, reality for Illinois is if you do not build and provide a diversified plan for energy sources that as suppliers or energy sources diminish, so will the risks increase with reliance on less producers of sources of energy.

If large users of energy want to enter into contracts with sources outside the State of Illinois to enter into contracts to obtain lower prices because of volume usage that the prices of State amortized pricing, in my experience as an energy buyer for a large Corporation, most business , companies know best to choose risks of lower prices vs risking a having the benefit of a reliable source for their power needs, State influenced energy planning goals  and diversification is a form of insurance in event off a natural disaster. Or the event the energy supplier become unable to fulfill the contract.

Energy Price Manipulation

I believe the underlying reason legislators are hesitant to fund nuclear is because Com Ed executives recently admitted to paying bribes to Illinois legislators to increase prices to consumers which present Illinois law has power to approve or not.

Competition is and always has been the best means to provide price competition and prevent price manipulation by limited energy sources.  How to prevent price manipulation is simple in my opinion, which is another separate issue.

As for salaries of energy executives and owners, the reality of the best way in my opinion is to prevent price manipulation is a combination of prohibitive tax brackets and death taxes to dismantle the ticking time bomb of National Debt.

If an energy expectative or legislator is convicted of bribery is to fine the person, not the energy company because all they will do is pass on heavy State fines to the users or shut down the energy plant for lack of opportunity to profit.

Problem is the cost to produce power requires huge investment funds by produces and in the case of the present nuclear power plant in question, State and consumer funds were used.

However, the reality of energy supply requires large investment and the key is to attract a large number of investors by paying the investors with guaranteed interest. For example, Government Treasury bonds are only paying minimal interest compared to inflation. Guaranteed interest rates higher will attract investors who want to invest without risks similar to investors who seed to reduce risks through stocks and bonds diversification.

If interested

Read the Source Links below

You Decide

What should be the goals of State legislators other than revenge against aa supplier for agreeing to bribery demands of a state legislator in order to profit or compete in every changing energy market and regimental emotions of voters.

Regards and goodwill blogging.

Source Links

Chicago Tribune

https://www.chicagotribune.com/opinion/commentary/ct-opinion-nuclear-energy-byron-dresden-plant-20210830-c3hmgfaztvdidow7aqjsu4m73u-story.html

Ticking Time Bomb vs Death Taxes

King Solomon, The National Debt: America’s Ticking Time Bomb – Rudy u Martinka (rudymartinka.com)

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