Comment on AI Electric Bills

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obsoleteacct@lemmy.zip ⁨1⁩ ⁨week⁩ ago

Gas isn’t energy, it’s fuel. It’s a commodity with a global market. Producers have to physically store it. Refined gasoline has a shelf life and production is planned weeks to months in advance. If demand falls off their product depreciates and they have storage expenses. If a gas company cuts production below demand competitors can ramp up and eat that market share because consumers have options.

But electricity tends to be a captured, monopolistic market. There’s no scalable physical storage. The supply is whatever they are producing locally right now and they have some say in that. There’s no tanker of Saudi electricity coming to relieve the market and you’re not going to drive your house to a filling station to top off your electricity.

Liquid natural gas is similar, in that most people will just pay whatever is asked for what’s pumped into their homes, but less dramatic because it is a physical commodity that can be replaced or substituted.

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