You can build all of the electric power plants you want, but it won't do much good if you can get the electricity to where it's needed. Ditto for natural gas with respect to pipelines. This the second of a five articles on electricity and natural gas prices.

Where's the new Energy Infrastructure?
1) The US has not built a large high voltage (greater than 230 kilovolts (kv)) power line across State lines in a long time. Only 550 miles of high-voltage power lines (greater than 230 kv) have been built across state borders since the beginning of this decade, compared with 5,000 miles of natural gas pipelines.

Public opposition to these projects and delays simply kills projects. The planning horizon for the 500 kv projects can be between 10 to 14 years. In some regions, inadequate transmission causes congestion in the transmission system and higher prices to move power to where it is needed. New York City is very problematic in this regard.

2) It is very hard to build natural gas pipelines across State lines that would move gas to where it's needed. Despite the obstacles there is about 5,000 miles of natural gas pipelines.

People living in the country side don't care about bringing natural gas to larger cities and industrial areas like LA, San Francisco, Miami, Atlanta or Chicago, New York or Boston, although it is easier in the South. They think, "what's in it for me?" This limits supply and can increase the price of natural gas and electricity.

3) To satisfy the demand for natural gas for electric power generation and heating, energy companies have proposed Liquefied Natural Gas Terminals (LNG) in coastal areas. These terminals are controversial because they require large LNG tankers to discharge their cargoes and pose security and safety risks.

4) Global warming and reductions in carbon dioxide (CO2) mandated by the US Environmental Protection Agency are putting the squeeze on coal-fired power plants. Many are proposed coal power projects are being shelved. Because of global warming concerns and the above restrictions on CO2 emissions, electric utilities are envisioning a resurgence in nuclear energy. We'll see.

5) Wind Energy and Solar are favored, but hooking them up to the electric transmission system is problematic. This is because of delays by the transmission owners or the delay in building new transmission lines altogether.

6) Fuel Cells and Light Emitting Diodes (LEDs) are the promise of the future since these technologies are highly efficient. Although LEDs are expensive they are available and appropriate in particular applications. You can buy fuel cells, but until you find them at the Home Depot or Lowes, they'll have little influence on electricity prices or the environment.

The Electricity Calculator
Now that you have some idea of how natural gas and electricity prices are affected, try using the Electricity Calculator.* The calculator will be used to decide future electricity prices and environmental consequences in the United Kingdom.**

You can practice being an Energy Czar using the Electricity Calculator for the United Kingdom that we found on BBC Online. We think its pretty cool. Click the box below and then click start.

* Unfortunately, we could not find an electricity calculator for the United States. Nevertheless, we think using the Electricity Calculator that we found on BBC Online to meet the United Kingdom's electricity needs in the year 2020 is excellent. Have fun and please send us your comments on this.

** About the Electricity Calculator. If you didn't do so well, then you'll want to look at the other energy articles below.

Your comments are always welcome and encouraged. To leave a comment, please Join our community. Learn more.