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Articles by Cathy Kunkel
Puerto Ricans Take Power Into Their Own Hands
Above image: Elizabet Wendt. As the climate crisis intensifies and 2050 climate targets seem increasingly out of reach, efforts to build local climate resilience are becoming increasingly relevant. In Puerto Rico, AMANESER works with local groups to install and maintain their own rooftop solar systems to meet critical household needs.
Alerta: el gobierno planea contratar mucha más generación de la necesaria
El 17 de octubre, la Autoridad para las Alianzas Público-Privadas de Puerto Rico (Autoridad P3) publicó una solicitud de cualificaciones (RFQ, por sus siglas en inglés) para la construcción y operación de 3 mil megavatios (MW) de generación eléctrica nueva en la isla.
Why let Big Tech destroy our climate?
As the globe struggles to meet current climate goals, a new threat is emerging. The threat is coming from Big Tech companies like Apple, Microsoft, Amazon, Alphabet (Google) and Meta (Facebook). Together, these companies represent a sector that dominates the market. At $3.6 trillion, Apple is now seven times the size of ExxonMobil, the nation’s leading oil company.
Puerto Rico Is Facing Down Another Undemocratic, Austerity-Obsessed Bankruptcy Deal
In the near future, a federal judge in New York will decide whether to approve a debt restructuring deal that will have major consequences for Puerto Rico’s people. , (Spencer Platt / Getty Images) A federal judge in New York will soon be ruling on the largest local government bankruptcy in US history — not of any city in New York, but of the Commonwealth of Puerto Rico.
Puerto Rico Is Facing Down Another Undemocratic, Austerity-Obsessed Bankruptcy Deal
A federal judge in New York will soon be ruling on the largest local government bankruptcy in US history — not of any city in New York, but of the Commonwealth of Puerto Rico. The judge will decide whether to approve a debt restructuring deal that will have major consequences for Puerto Rico’s people and economy over the next several decades.
Retrasos, daños y mal servicio: los dos primeros meses de LUMA Energy ponen de relieve los defectos de la privatización
Los puertorriqueños enfrentan desafíos en los primeros meses de la adquisición de LUMA, lo que pone al relieve la necesidad de una supervisión más fuerte 16 de agosto de 2021 (IEEFA EE. UU.)—Las dolencias y frustraciones identificadas en los primeros dos meses de la operación de LUMA Energy de la red de energía de Puerto Rico resaltan las fallas subyacentes con el contrato de privatización, según un análisis del Instituto de Economía Energética y Análisis Financiero.
IEEFA U.S.: Delays, damages and poor service: LUMA Energy’s first two months highlight privatization flaws
Puerto Ricans face challenges in early months of LUMA takeover, highlighting need for stronger oversight August 16, 2021 (IEEFA)—Failures and frustrations identified in the first two months of LUMA Energy’s operation of Puerto Rico’s energy grid highlight underlying flaws with the privatization contract, according to an analysis by the Institute for Energy Economics and Financial Analysis.
IEEFA: Puerto Rico has chance to use billions in federal aid for creation of resilient, renewable grid
More than $14 billion in federal funds should be used to increase Puerto Rico renewable sources Puerto Rico should take advantage of a unique opportunity to deploy billions of dollars of federal funding to create a resilient, decentralized electrical system based on renewable energy—an opportunity that neither the Puerto Rico Electric Power Authority (PREPA) nor private operator LUMA Energy has shown any interest in pursuing.
IEEFA: Puerto Rico’s electric grid suffers series of setbacks under Luma Energy management
Power outages and services delays should raise alarms for the future More than two weeks into its management of Puerto Rico’s electrical system, private contractor LUMA Energy is not off to a good start.Frequent power outages and service delays have tested the patience of an already over-burdened customer base since LUMA Energy took control of the island’s electric system in a privatization switchover on June 1st. This has had predictable consequences.
IEEFA U.S.: Poor decisions on LUMA contract put Puerto Rico’s workers and communities at risk
FOMB privatization plan pushes electrical workers to the margins May 12, 2021 (IEEFA) ⎼ Why is the Financial Oversight and Management Board (FOMB) of Puerto Rico aggressively pushing a grid privatization contract that threatens to destroy the one asset the electrical system has—its skilled workforce—while raising costs for the bankrupt island government? LUMA Energy is scheduled to take over the non-generation functions of the Puerto Rico Electric Power Authority (PREPA) on June 1.
IEEFA: Consultants poised to make more than $1 billion from bankrupt Puerto Rico utility
Huge consulting fees highlight systemic problems with reform of island utility April 29, 2021 (IEEFA) ⎼ The transformation and financial restructuring of Puerto Rico’s bankrupt electric power authority have generated more than $440 million in consulting contracts during the last seven years and could cost island residents more than $1 billion before completion, according to a study released today by the Institute for Energy Economics and Financial Analysis.
Cathy Kunkel: HIV crisis off city's agenda, but not going away (Opinion)
It happened again. Charleston is ground zero for a national overdose crisis. Hepatitis and HIV rates are on the rise from intravenous drug users sharing needles. In 2018, then-Mayor Danny Jones decided to shut down the only harm reduction program in town that was following best practices to distribute clean syringes. At the time, the mayor ran roughshod against the advice of a broad coalition of medical professionals, faith leaders and people in recovery.
IEEFA: Savings from Puerto Rico grid privatization off to a bad start
Contractor that promised savings set to exceed budget even before taking over Puerto Rico’s key electrical system privatization initiative has been a longshot to save money for the people of Puerto Rico—and the odds are getting longer, according to an analysis of the 15-year contract with LUMA Energy and its proposed budgets for the next three years.
IEEFA: Puerto Rico can provide resiliency to 100% of homes through solar expansion
Investing in renewables would lower costs, reduce price-volatility and provide resiliency to Puerto Rico March 10, 2021 (IEEFA)—Investing $9.6 billion in distributed solar panels and batteries—funds that are already available from the federal government—could transform Puerto Rico’s electrical system into a resilient grid that provides every home on the island with a clean, reliable source of energy, according to a report released today.
IEEFA U.S.: Financial rationale for Mountain Valley Pipeline has evaporated in changing market
Falling demand, legal and regulatory challenges spell financial peril for pipeline project March 8, 2021 (IEEFA) — A 303-mile pipeline that would move natural gas from the Appalachian Basin to markets in the eastern and southern U.S. is in financial jeopardy because of reduced demand projections and legal challenges, according to a report released today by the Institute for Energy Economics and Financial Analysis (IEEFA).
IEEFA: Puerto Rico power authority continues end-run attempts around regulators with federally-funded natural gas plans
$850 million in federal funds targeted for 400-megawatt (MW) combined-cycle natural gas plant and 11 new peaker plants In August 2020, the Puerto Rico Energy Bureau approved a long-term plan for the island’s electrical system that called for greater investments in renewable energy and storage. The bureau worked for months to integrate analysis from a variety of stakeholders and eventually rejected new natural gas initiatives because of their costs and logistical challenges.
Cathy Kunkel: The real divide is between rich and poor (Opinion)
I am running for Congress in West Virginia because we need an economy that works for all of us, not just a wealthy few. The coronavirus pandemic has exposed even more sharply the economic divides in our country. We live at a time when just two families in our country have more wealth than half the population of our country, 160 million Americans.
Cathy Kunkel: Congress needs to focus on meeting economic needs (Opinion)
Last week, Rep. Alex Mooney, R-W.Va., published an op-ed attacking House Democratic leadership for their new system of proxy voting during the COVID-19 pandemic. Meanwhile, tens of thousands of West Virginians are on the cusp of losing pandemic unemployment insurance when it expires at the end of July. That includes self-employed and “gig economy” workers who are not typically eligible for any kind of unemployment benefits.
“It’s About Giving People Real Economic Freedom”
Interview by Micah Uetricht We’re quickly moving into election season, and miracle of miracles, many candidates are actually good. The rise of the Democratic Socialists of America in the wake of Bernie Sanders’s first campaign has already led to socialist electoral victories around the country, from Rep. Alexandria Ocasio-Cortez in New York to the six socialist city council members in Chicago.
Cathy Kunkel
Cathy Kunkel is an independent energy analyst based in Charleston, WV and co-chair of the West Virginia Working Families Party. Cathy Kunkel is an energy analyst, environmental and community activist, and member of the Democratic Socialists of America running for Congress in West Virginia’s second district. She explains her history of organizing and argues that “red-state” voters will get on board with an agenda that includes Medicare for All and a just transition for fossil fuel workers.
Roselló Steps Down So Puerto Rico Can Rise
Puerto Rico has experienced a remarkable week, culminating in mass protests that have received wide coverage in the US media. All sectors of Puerto Rican society have united in an attempt to unseat Governor Ricardo Rosselló.
West Virginia Isn’t Just “Trump Country”
West Virginia is a state that embodies the tensions and possibilities inherent in the recent antiestablishment turn in American politics: it is a state that voted 68 percent for Donald Trump in 2016, and it is the state that kicked off a national wave of rank-and-file labor militancy in 2018. And now West Virginia has a candidate for governor in 2020 running an ambitious antiestablishment campaign.
IEEFA update: Under PREPA’s new debt deal, electricity prices will rise 13% by next summer in Puerto Rico - Institute for Energy Economics & Financial Analysis
Rates will continue to rise to pay down legacy debt A deal has been reached to settle the more than $8 billion in legacy debt of the Puerto Rico Electric Power Authority (PREPA). Last Friday, the Financial Oversight and Management Board (FOMB) for Puerto Rico published an agreement between the government of Puerto Rico, the FOMB, a majority of PREPA bondholders, and Assured Guaranty, a major insurer of PREPA bonds.
IEEFA Puerto Rico: PREPA privatization plan overlooks unionized workers as best asset - Institute for Energy Economics & Financial Analysis
Honoring collective bargaining agreements is fiscally sound and economically necessary Puerto Rico’s Senate and House of Representatives are finalizing an energy policy bill that amends the existing privatization plan for the Puerto Rico Electric Power Authority (PREPA). One of the remaining issues is whether to require future private utility owners to honor existing PREPA collective bargaining agreements with labor unions. The legislature should protect these agreements.
Author at Institute for Energy Economics & Financial Analysis
Energy Analyst Cathy Kunkel is an independent consultant with Kunkel Energy Research. She has testified before regulatory bodies and was a senior research associate at Lawrence Berkeley National Laboratory. She has undergraduate and master’s degrees in physics.
Cyclone struck Puerto Rico aims for 100% renewables, but new rules favour gas
A bill put forth last week by leading Puerto Rico senators pushing for major energy policy reform for the island makes some noteworthy commitments to renewable energy. Unfortunately it would do little to shut down the rush to natural gas development that threatens to crowd out investment in renewables. On the one hand, the bill significantly strengthens Puerto Rico’s renewable portfolio standard to 50 percent by 2040 and 100 percent by 2050. Gov.
Puerto Rico energy bill: A step toward renewables or another scandal waiting to happen?
Last week, leading Puerto Rico senators introduced a major energy policy reform bill for the island, and a hearing on the bill is scheduled for Friday. The bill makes some noteworthy commitments to renewable energy, but unfortunately would do little to shut down the rush for natural gas development in Puerto Rico that threatens to crowd out actual investment in renewables.
IEEFA update: The unsustainable debt deal that won’t die - Institute for Energy Economics & Financial Analysis
July’s proposal to pay bondholders 77 cents on the dollar for about a third of the debt of the Puerto Rico Electric Power Authority (PREPA) straggles on, neither approved nor rejected despite deadlines passing. If the measure of success of a debt settlement is that it offers realistic payouts to bondholders while allowing the debtor the ability to emerge as a going concern, then it’s time to forget about this deal. This proposal doesn’t move PREPA toward a credible solution to its debt problems.
IEEFA update: A perilous rush toward natural gas dependency in Puerto Rico - Institute for Energy Economics & Financial Analysis
IEEFA is urging the Financial Oversight and Management Board (FOMB) of Puerto Rico to halt the rush to natural gas infrastructure development in Puerto Rico.
IEEFA Ohio/Pennsylvania: Bracing for Economic Fallout From Failing Power Plants - Institute for Energy Economics & Financial Analysis
Time has borne out what we said in a report we published in 2014 arguing that FirstEnergy was in financial trouble and that its strategy of seeking bailouts from customers might not be enough to turn around the company’s flagging fortunes.
Chairman Rob Bishop is now impeding Puerto Rico’s recovery
Rep. Rob Bishop Robert (Rob) William BishopDefense Department walks back opposition to sage grouse amendment More than 100 Dems oppose GOP efforts to change endangered species law Western lawmakers introduce bills to amend Endangered Species Act MORE (R-Utah), chairman of the House Natural Resources Committee, has abandoned the sound fiscal stewardship that once made him a leader on fiscal solvency and responsible economic recovery for Puerto Rico.
How Puerto Rico misses the mark in latest attempt to privatize broken power authority
In its version of a bill to privatize the Puerto Rico Electric Power Authority, the Puerto Rico legislature has improved some on Gov. Ricardo Rosselló’s original proposal, but lawmakers are ultimately failing the Puerto Rican people every bit as badly as Rosselló has. We’ve criticized the governor’s original privatization proposal for essentially aiming to set up a process that would enable the implementation of politically driven contracts devoid of regulatory oversight.
Little chance new fiscal recovery plan for Puerto Rico’s electric company will succeed
Puerto Rico’s bankrupt electric utility cannot afford to pay back the utility’s creditors over the next five years without jeopardizing much-needed investment in the rebuilding and resiliency of the island’s power grid. Nor can the utility continue to pay fossil fuel producers exorbitant amounts for oil, coal and gas. Those are the two major takeaways from a report we released last week on the Puerto Rico Electric Power Authority’s five-year fiscal plan .
IEEFA Puerto Rico: Proposed Offshore Gas-Import Project Makes Less and Less Sense - Institute for Energy Economics & Financial Analysis
In shelving its review of the economic viability of a proposed natural gas import complex off the south coast of the island, the Puerto Rico Energy Commission last week took a policy step in the right direction. The Aguirre Offshore Gas Port (AOGP) would bring additional liquefied natural gas into the commonwealth for electricity generation, but the commission noted that the project today lacks a clear economic rationale.
Two Pipeline Expansion Projects in Appalachia Indicate a Rush Toward Overbuilding - Institute for Energy Economics & Financial Analysis
We’ve published a report today that concludes that two natural gas pipelines proposed for construction from West Virginia into Virginia and North Carolina are indicative of a rush toward industry overbuilding.
A Strategy to Win
On March 29, the threat of a looming strike forced Oklahoma’s Republican state government to concede a $400 million funding bill granting a historic teacher pay raise of $6,000. Inspired by the example of West Virginia, Oklahoman educators nevertheless decided to push forward with their strike. But two weeks of striking proved insufficient to force an intransigent Republican government to concede to the educators’ demands for increased school funding. Schools reopened this Monday.
A Strategy to Win
On March 29, the threat of a looming strike forced Oklahoma’s Republican state government to concede a $400 million funding bill granting a historic teacher pay raise of $6,000. Inspired by the example of West Virginia, Oklahoman educators nevertheless decided to push forward with their strike. But two weeks of striking proved insufficient to force an intransigent Republican government to concede to the educators’ demands for increased school funding. Schools reopened this Monday.
Now is not the time to rollback oversight of Puerto Rico’s power company
Members of Congress have rightly expressed concern over Puerto Rico Gov. Ricardo Rosselló’s incessant campaign to steamroll the Puerto Rico Energy Commission, the progressive regulatory body that is seeking responsible modernization of the island’s backward electricity system. Just last week, the Puerto Rico Senate approved a bill that contains the governor’s most recent plan to dismantle the commission.
Anatomy of a Victory
The strike of West Virginia teachers and school service personnel ended Tuesday after the state senate finally agreed to a 5 percent pay raise. Although the pay raise had been announced a week previously in a deal reached by Governor Justice and the leaders of the teachers’ unions, state senate leadership proved to be the major roadblock to actually passing the bill.
When the Rank and File Leads
It’s unclear how the standoff between West Virginia workers and the state senate will end, but if nothing else, this week’s decision to keep striking is a reminder that the rank and file can lead. “We believe the best course of action at this time is to return to school tomorrow, however, we realize that not everyone will,” said the West Virginia Education Association’s president at a press conference Wednesday evening.
The Top Labor Battles in West Virginia History
West Virginia has been rocked over the past nine days by a massive teachers’ strike that has closed all 680 public schools in the state’s fifty-five counties. And it’s been contagious: energized by the West Virginian example, Oklahoma teachers are now planning a statewide strike of their own. The ongoing strike is neither the first time the state has been a site of mass labor militancy, nor the first time a labor battle has spilled from the state’s borders and spread across the country.
When the Rank and File Leads
“We believe the best course of action at this time is to return to school tomorrow, however, we realize that not everyone will,” said the West Virginia Education Association’s president at a press conference Wednesday evening. Since then, school remains cancelled in all fifty-five counties in West Virginia as striking teachers and school service personnel refuse to return to work.
When the Rank and File Leads
“We believe the best course of action at this time is to return to school tomorrow, however, we realize that not everyone will,” said the West Virginia Education Association’s president at a press conference Wednesday evening. Since then, school remains cancelled in all fifty-five counties in West Virginia as striking teachers and school service personnel refuse to return to work.
Do-It-Yourself Class Struggle
Earlier this week, the Supreme Court began hearing oral argument in Janus v. AFSCME, a lawsuit that seeks to gut public sector unions by denying them so called “agency fees,” or mandatory dues contributions from workers. One component of the deliberations was the question of “labor peace” — the state’s interest in stable, predictable labor-management arbitration.
“It Was About the Insurance Fix”
On Friday, hundreds of striking teachers flooded the foyer of the West Virginia capitol building in Charleston. Holding signs that read “Whose side are you on?” they voted to occupy the building until their demands were met. As the Supreme Court considers the Janus v. AFSCME case this very week — posing an existential threat to public sector unions throughout the country — labor movement activists should be watching the West Virginia teachers’ strike closely.
Losing West Virginia
Few states better illustrate the contradictions and failures of the Democratic Party than West Virginia.
Saving West Virginia
Thousands of West Virginia teachers and school service personnel have flooded the state capitol every day since February 22, demanding higher pay and more funding for the state’s struggling public employee health care system. This is West Virginia’s first-ever statewide teacher and school service personnel strike and the only one since 1990.
Losing West Virginia
This article was originally published in Jacobin Magazine. Few states better illustrate the contradictions and failures of the Democratic Party than West Virginia. West Virginia got a lot of attention in this year’s presidential election cycle. It was spotlighted regularly by the media to explain the phenomenon of the “Trump voter.” Unlike states like Michigan and Pennsylvania, Trump’s victory in West Virginia was predicted far in advance.
FERC’s decision: The coal industry lost and the nation’s consumers won
The coal industry came away with nothing last week when the Federal Energy Regulatory Commission (FERC) unanimously rejected a Department of Energy proposal — pushed by the industry — to provide huge subsidies to coal-fired power plants in the United States. FERC protected the interests of consumers by standing in favor of market competition — more evidence that coal can no longer compete with natural gas, wind, and solar power.
Puerto Rico’s solution - microgrid system supported by solar energy
In the lingering aftermath of Hurricane Maria, the flaws in Puerto Rico’s electric system are apparent. First among them is an island-wide system designed with the bulk of its power plants located along the southern coast of the island while the majority of the population lives along the north shore. Electricity delivery has been historically overly dependent on Puerto Rico’s long-distance south-to-north transmission corridors.
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