Samantha Johnson Article 9 “Op-ed: Utah needs to plan for the future of energy”

Summary: This article starts by going over power situations in Senegal, West Africa. It

discusses how some can’t afford it and how those who can still get spotty electricity that is

limited. It then goes on to discuss power situations in the U.S., it talks about the rise of

renewable energy and Utah’s own transition into renewable energy. It goes over what it will

take for Rocky Mountain Power and the government to change from their coal-fired plants to

renewable energy.

Analysis: This article deals with the ​Economics 1​​ (the science of making decisions in the

presence of scarce resources) and the Power​ Market 2​​ (group of buyers and sellers, same

place and time) of Senegal, West Africa and Salt Lake City, Ut, USA. It starts by going over the

current power situations in Africa. It says many do not get the ​Utility 3​​ ​( the amount of pleasure,

need fulfillment or satisfaction one receives from the consumption of a good or service) from

power as only some can afford it. It talks about how power companies in Africa need to know

how much electricity appliances/ households need because of the ​Scarcity 4​​ ( when resources

are limited) of power. There is a definite ​Shortage 5​​ ( when QD>QS, consumers hurt, prices

increase until eventually qd=qs) of electricity and it puts many ​Constraints 6​​ (things that limit)

on consumers and producers. There is not ​Equality 7​​ ​(distributing economic prosperity

uniformly among members of society) like we experience here in the US and it could be

classified as a ​Market Failure 8​​ (when the market doesn’t allocate resources efficiently). The

article then goes over power situations in SLC,UT. It is very different here, we have far more

Technology 9​​ (the practical application of scientific knowledge) and better systems which give

us an ​Absolute Advantage 10​

​ (the ability to produce a good using fewer inputs than another

producer) and ​Comparative Advantage 11​

​ ( the ability to produce at a lower opportunity costs

than another producer) to Senegal. The article goes over the ample supply of power and how
Samantha Johnson Article 9 “Op-ed: Utah needs to plan for the future of energy”
power companies keep up with the ​Demand 12​
​ ( the ability and willingness of a consumer to

buy specific goods and specific quantities of the good given the price and time period) here in

SLC. The author gives his ​Theory 13​

​ ​( an explanation of why something occurs) that the

monopoly Rocky Mountain Power will eventually have to transition to renewable energy. He

notes it will be costly and they will need to look at the ​Variable costs 14​
​ (costs that change with

the level of output) and ​Fixed Costs 15​

​ ( costs that do not vary as output varies) and may need

​ ​( simplified representation) to achieve renewable energy production but says it

to use ​Models 16

is inevitable. Rocky Mountain Power has substantial ​Market Power 17​

​ ( a single buyer or seller

that has substantial influence over market prices) and has the ability to shift many states to

renewable energy if they choose to. They will need to look at the ​Opportunity Costs 18​
​ ( the

value of the next best choice sacrificed) and use ​Positive Economics 19​
​ ( attempts to access

the economy using scientific facts) to make the transition. The author closes by saying it is not

​ ​(
all up to Rocky Mountain Power and that the government should offer an​ Incentive 20​

something that induces a person to act) transitioning into renewable energy.