Juggling Dynamite

While offshore wind farms are already common in Europe, the Block Island Wind Farm in Rhode Island, is the first ever built in the US. This week officials switched on a connection between the island and Rhode Island’s main power grid, and shut down the now antiquated, diesel plant that had burned some 1 million gallons of fuel annually as the island’s previous power source.  See America’s first offshore wind farm, just shut down a diesel plant:

“The emissions that go along with nearly a million gallons of diesel a year — that’s all going to go away,” said Jeff Wright, chief executive of the Block Island Power Co.

The offshore wind power potential in the US is huge. If fully developed, offshore turbines could supply four times today’s total US electricity generating capacity — enough to power roughly 800 million homes.

“Having an operating project demonstrates to the rest of the industry, including the supply chain, that a project can be built, and the same to state governments whose political and financial support for these early projects will be critical,” said Jeremy Firestone, director of the Center for Carbon-Free Power Integration at the University of Delaware.

In recent months, developers have won leases from the federal government to build other offshore wind farms along the Atlantic Coast. Projects likely to be completed in the next several years include wind farms off the coasts of Long Island, Maryland, and Delaware, Firestone said.

PBS reported on the project last December.  Here is a direct video link.  Note:  when critics complain about the look or cost of turbines, they overlook the full cost accounting of fossil fuel excavation, transportation, burning, spills, maintenance, water waste, contamination, pollution, health costs, disease, wildlife devastation, climate change and clean up costs.  Fossil fuel and service companies have not set aside nearly enough funds for the restoration and repair work needed in the decades ahead.  For more perspective on just some of the costs that lie ahead for we, taxpayers, in the aftermath of the oil era, see:  A Sobering Look at the Future of Oil.

Now available on Netflix.

The True Cost is a groundbreaking documentary film that pulls back the curtain on the untold story and asks us to consider, who really pays the price for our clothing? Here is a direct video link.

After 5 tortuous years of discussions between public safety advocates, regulators, banks, insurance cos and other investment dealers, yesterday the Canadian Securities Administrators (CSA) caved. They announced that all provincial regulators, except the Ontario Securities Commission and the Financial and Consumer Services Commission in New Brunswick, will scrap plans to introduce a standard requiring those offering financial advice to put their clients’ best interests ahead of sales targets.

This is all extra nauseating, coming as it does, after the latest whistle-blower reports about the aggressive, self-focused sales culture driving Canada’s largest bank and investment dealer recommendations today.  See  ‘A very disheartening day’:

“This is a very disheartening day,” said investor advocate Ken Kivenko. “Things are definitely not working for Canadians who trust the financial advice they’re getting.”

Go Public has heard from employees at Canada’s big five banks and other financial institutions who admit they often put people’s money into mutual funds and other investments that will generate sales revenue, commissions and management fees but that often aren’t the best option for the client.

The vast majority of investment “advisors” in Canada are actually salespeople — only advisers spelled with an “e” have a legal duty to act in a client’s best interest.

So long as the public continues to accept financial advice from the sales force, individuals will continue to suffer from capital mis-allocations, excessive risk exposure and compound losses over each full market cycle. The only hope is if the public demands change while voting with their money–refusing to accept advice from those who do not operate under a fiduciary duty.  Eyes wide open.