Delaware’s Electric Energy Crisis

 By: Kenneth J. Reuter JR., Guest Contributor

Today, Delaware is in an electricity shortage. We consume one hundred times more electricity than we produce. It has not always been that way. Generation constraints are driven by political pressure to reduce greenhouse gas emissions through the elimination of fossil fuels. Concurrently, demand for electricity has never been as high as it is now and there are no signs of it slowing down. Massive amounts of data require a corresponding massive amount of electric energy to produce. We all want clean energy. But arriving at that destination requires a practical approach and pragmatic thinking which is lacking today. Delaware is second from the bottom out of 50 States in electricity production. We have seen coal plant closures in Sussex County and output reductions in highly efficient natural gas plants in New Castle County. It is time to build a practical, pragmatic, and sensible energy plan for Delaware. Our population is expanding. If we want to build a bright future where we attract industry that in turn produces non-government jobs, we have no alternative than to start planning now.

First, recognize the difference between Baseload and Intermittent Power Generation. Baseload generation operates 24/7 irrespective of weather.  Intermittent Generation does not and comes in two forms – Wind and Solar. Wind and Solar are intermittent sources of energy in that generation is not a steady 24/7 operation but dependent on the amount of wind and the sun.  Intermittent generation is not dispatchable energy.

Current generation shortages in Delaware demand immediate expansion of Baseload Generation. Three crucial steps must be taken to avoid extended outages.

1. Extend where practical all current forms of electric generation. Climate initiatives have taken priority over needed capacity and in some cases have been prematurely decided. Before we sanction the decommission of any power plant, we must first ensure that replacements are in the predicable future. To date, planning has been woefully inadequate.
2. Fast-track adding to existing natural gas plants and exploring adding new plants to the Natural Gas fleet. Concurrently, laser focus on Nuclear Generation, for that presents the best option to generate clean electric energy into the future. Technological improvements have advanced nuclear to near state-of-the-art generation.  Advancements such as factory produced SMRs (Small Modular Reactors), refinements in Fission and Spent Fuel Management, plus accelerated advancements in Fusion technology have given rise to very real solutions to produce clean, reliable and dependent electricity that can meet rising demand into the future.
3. Assemble a strong core of knowledgeable experts to accelerate the creation of logical, practical legislation to pave a new road to lead Delaware into the future. Steps have already been taken to do just that through the newly formed Nuclear Energy Feasibility Task Force or NEFTF. The time is now to accelerate and sharpen its focus and build a solid plan for Electric Generation into the future.

 Delaware is moving in the right direction now and sharpening its focus to not only meet current and future electricity demand, but to protect and expand potential new jobs that fuel our economy.  In our world today, abundant electricity is not a luxury.  It is crucial to our way of a healthy, safe and strong economic life.

Kenneth J. Reuter, Jr. has devoted 40 years to the electric energy industry, beginning with extensive technical training in the U.S. Navy and earning an executive MBA from Northeastern University and a BS from the University of Delaware. His career includes engineering roles at leading U.S. National Labs and leadership positions with top companies such as AMP Inc., Framatome Connectivity, Areva Transmission & Distribution, and Siemens Energy. Reuter’s expertise spans commercial engineering, business management, and executive leadership in energy generation, transmission, and distribution.

Empowering Delawareans Through Transparent, Patient-Driven Health Care Choices

By: Jane Brady, Chair, A Better Delaware 

A Better Delaware does not often comment on national issues, but in the case of health care, there is no more significant power that can impact Delaware citizens more than the federal government policies regarding the provision of, and billing for, health care services.

You may have followed the current debate about whether the federal government should continue to provide subsidies under the inaptly named Affordable Care Act (Obamacare). The system is becoming more unaffordable as time goes on, and the structural flaws that are contributing to that decline have not been addressed by Congress. Worse, they are not part of the current discussion. Much of the problem stems from direct payments to insurance companies, resulting in the patients being, generally, unaware of what the health care they receive actually costs.

There are a number of ideas about what might work.  Multiple experts have recommended a change to the structure that would put patients and insured in more control of what health care choices they make and how their health care dollars are spent.

One choice is to expand Health Savings Accounts (HSAs).  While there are some HSAs in the marketplace today, they have restrictions. The plans currently allow an individual to establish an account into which they can make deposits that can be withdrawn later, tax free, for certain medical expenses, such as deductibles or copayments.  It can follow you from job to job, but there are limits on the amount you may contribute each year, and you cannot continue to contribute from six months before you go on Medicare or retire.

Recently, Anthony LoSasso, a health economist, proposed a structured plan called a Health Freedom Account (HFA).  That plan would not so much address how much the government subsidies are, but how they are allowed to be used by the individual insured.  As LoSasso explains it, the government would provide a defined contribution for low-income individuals, the amount of which would be tied to the Consumer Price Index (CPI). This would eliminate the automatic increases currently in Obamacare and save money.  LoSasso proposes that if an insured selects a plan that costs less than the subsidy, the excess would be deposited into the HFA, which would then be available for other health care costs.

Everyone, whether they support Obamacare, Medicare and Medicaid as they are, or want to change the delivery of health care, believes that the cost of health care is too high.  A significant factor is the fact that, because of the direct billing to insurers, patients are unaware of the value of what they are receiving. They have little to no information about cost in advance of a medical procedure or visit and cannot make informed decisions in selecting a health care provider, for everything from regular checkups to elective surgery.  That has to change. If we are to reap the benefits of patient driven care, we must adopt a system in which the patient or insured makes the choices of what is in their health care plan, can choose those services they need, and avoid paying for those they do not.

Think about it. You don’t go into the store and buy something not knowing the price.  You don’t pick up a bag labeled “meat’ and take home whatever is in it.  You would not think of hiring a contractor to fix your front door without asking if the bill would be $50 or $500. Healthcare is the only service that is provided regularly, where you don’t know what the bill will be. And to be truthful, many of us don’t care because our exposure is limited to a $20 co-pay. Knowing what things cost directs our choices, and if the money to pay for a medical procedure was coming out of an account, the balance of which we were aware, we would make an effort to get the best value for that money.

We should have a law that requires patients to know what procedures cost at the different facilities, like an MRI or a knee replacement? Well, we have those laws on the books, both at the federal and state level, and they are not enforced. Compliance is poor, and accountability is almost non-existent.  We need to change that.

Moving to patient directed care will be challenging. The industries that benefit from the near dictatorial authority with regard to the cost of health care will not give up that power easily. But our citizens deserve the opportunity to know what the cost is for a procedure and where they can get the best value.  Their choices will not only save them money but save money for the taxpayers as well.

Jane Brady serves as Chair of A Better Delaware. She previously served as Attorney General of Delaware and as a Judge of the Delaware Superior Court.