When you want a second medical opinion, you consult a doctor in the same field. Would you ask an eye doctor to confirm a diagnosis of a heart problem? For a peer review to be valid, the first opinion must be reviewed by someone with credentials in the same specialty.
This is not what Sempra Services did when it hired the Fermanian Business and Economic Institute to review a city-commissioned’s community choice aggregation study. The institute’s review raised several concerns about the feasibility of switching to a government-run energy program. But are those concerns valid? Is the Fermanian Business and Economic Institute a qualified peer in the electric utility world?
The city-commissioned CCA study’s authors concluded that a government-run program for San Diego is feasible. It’s the first point the institute attacks, saying, “It is first important to understand the meaning of ‘feasibility,’” going on to call it a weak endorsement.
Yet in the engineering study world, pronouncing something “feasible” is actually a strong endorsement, and a very good indication that something will indeed work well.
That the institute misunderstood the word’s connotation is a clear indication it is not a peer in this industry. The city’s CCA program is aimed at combating climate change, a global existential threat. That the institute didn’t bother to spend 15 minutes reviewing the word’s usage in similar studies is unconscionable and casts great doubt on the Sempra Services-funded review’s credibility.
Other aspects of the review similarly suggest misunderstandings. At the heart of the study is the use of a standardized mathematical model – the pro forma. It is used to evaluate financial investments and produces two kinds of results: scenarios, which are designed to reflect a potential reality, and sensitivity analyses, which are used to evaluate input variables and do not represent reality.
We Stand Up for You. Will You Stand Up for Us?
I'll take a renowned economists opinion over some industry hack every time. You don't have to be an industry peer or an economist to know that alternative energy is going to cost more than traditional energy. I am all good and fine if you want to pay extra for free range chicken or organic power, but sign yourself up for this debacle DONT FORCE US IN.
By the way anyone really think a city that can't fill a stationary pothole or deal with the homeless is equipped to deal with power contract negotiations?