Tuesday, October 29, 2019

Do You Want To Know Why Intel Said They Would Never Build Another Factory In California?

It's partly the regulation, we've looked at that over the years, links below and it's partly the cost of electricity, ditto on the looks and links. California has the highest electricity prices in the contiguous United States.
And now they seem to have something of an intermittancy problem as well.
From the U.S. Energy Information Administration (scroll down):
Data for August 2019  |  Release date: October 24, 2019  

Residential Commercial Industrial Transportation All Sectors
Census Division
and State
August 2019 August 2018 August 2019 August 2018 August 2019 August 2018 August 2019 August 2018 August 2019 August 2018
New England 20.77 20.19 15.91 16.14 12.61 13.02 8.40 8.18 17.57 17.40
Connecticut 21.29 21.27 16.73 16.39 13.41 13.78 12.14 10.13 18.55 18.36
Maine 17.90 16.91 12.38 12.17 8.90 9.24 -- -- 13.88 13.26
Massachusetts 21.54 20.80 16.24 16.96 13.97 14.62 5.41 5.59 18.14 18.19
New Hampshire 19.47 19.32 15.55 15.25 12.76 13.04 -- -- 16.80 16.57
Rhode Island 21.76 18.70 15.49 15.79 14.61 14.88 17.03 16.93 18.21 17.06
Vermont 16.68 17.96 15.77 15.06 10.92 10.65 -- -- 14.96 15.09
Middle Atlantic 16.09 16.24 12.94 13.03 6.62 6.93 11.26 10.78 12.99 13.15
New Jersey 15.79 15.25 12.75 12.56 10.80 10.43 8.97 8.91 13.95 13.60
New York 18.39 19.02 15.22 15.50 5.69 6.08 12.54 11.54 15.43 15.73
Pennsylvania 13.83 13.95 8.49 8.81 6.38 6.71 6.33 7.51 9.83 10.06
East North Central 13.42 13.32 10.07 10.12 6.93 7.06 6.86 6.86 10.25 10.26
Illinois 12.51 12.52 8.85 9.14 6.53 6.78 6.67 6.66 9.46 9.72
Indiana 12.25 12.53 10.72 10.61 7.19 7.29 10.45 9.98 9.84 9.87
Michigan 16.53 15.40 11.46 10.92 7.44 6.91 8.22 10.82 12.13 11.39
Ohio 12.45 12.90 9.31 9.90 6.14 6.92 7.94 7.76 9.54 10.05
Wisconsin 14.80 13.99 11.15 10.75 8.07 7.62 14.09 14.31 11.20 10.74
West North Central 13.14 13.28 10.56 10.57 8.13 7.92 10.27 10.91 10.78 10.75
Iowa 14.73 14.18 12.21 11.37 8.59 8.14 -- -- 11.29 10.73
Kansas 12.96 13.95 10.51 11.10 7.29 7.62 -- -- 10.60 11.21
Minnesota 13.91 13.78 11.00 10.75 8.16 7.76 9.46 9.94 11.05 10.81
Missouri 12.71 12.92 10.29 10.44 7.63 7.72 11.10 11.96 11.05 11.15
Nebraska 11.83 11.98 9.44 9.36 8.10 8.21 -- -- 9.78 9.75
North Dakota 12.06 11.80 9.47 9.62 8.55 7.96 -- -- 9.53 9.35
South Dakota 12.72 12.62 10.03 10.09 8.28 8.16 -- -- 10.57 10.55
South Atlantic 12.11 11.71 9.28 9.08 6.74 6.49 8.04 8.02 10.21 9.87
Delaware 12.24 12.21 8.98 9.35 7.30 7.96 -- -- 10.30 10.34
District of Columbia 12.39 12.56 11.12 12.34 7.82 8.53 8.66 9.46 11.32 12.25
Florida 11.90 11.33 9.32 8.86 7.58 7.61 8.12 7.78 10.62 10.14
Georgia 12.38 12.60 9.97 9.89 7.10 6.38 8.29 6.36 10.52 10.33
Maryland 12.46 13.05 9.59 10.11 7.75 7.92 7.51 7.66 10.80 11.30
North Carolina 11.71 11.29 8.96 8.71 6.56 6.54 7.83 7.90 9.78 9.46
South Carolina 12.56 10.36 10.17 8.08 6.11 5.32 -- -- 9.94 8.10
Virginia 12.36 12.27 8.10 8.38 6.81 6.94 8.62 8.03 9.63 9.76
West Virginia 11.56 11.40 8.74 8.99 5.99 6.46 -- -- 8.51 8.70
East South Central 11.40 11.19 10.66 10.43 5.89 5.90 -- -- 9.63 9.39
Alabama 12.83 12.32 11.68 11.19 6.35 6.26 -- -- 10.35 9.91
Kentucky 10.62 10.60 9.70 9.50 5.34 5.45 -- -- 8.58 8.44
Mississippi 11.22 10.84 10.34 9.99 5.97 6.18 -- -- 9.39 9.21
Tennessee 10.80 10.85 10.65 10.61 5.79 5.73 -- -- 9.87 9.73
West South Central 11.26 10.96 8.42 8.31 6.76 5.64 6.49 8.10 9.15 8.63
Arkansas 10.08 10.01 8.70 7.59 6.39 5.83 13.43 11.68 8.51 7.95
Louisiana 9.57 9.92 8.55 8.83 5.20 5.66 8.76 9.34 7.82 8.10
Oklahoma 10.61 10.87 8.38 8.60 5.24 5.50 -- -- 8.43 8.66
Texas 11.80 11.27 8.37 8.24 7.51 5.62 6.32 8.01 9.61 8.82
Mountain 12.18 12.16 10.02 9.97 6.94 7.17 9.53 9.51 10.06 10.08
Arizona 12.52 12.83 10.89 11.18 7.05 7.66 10.43 11.29 11.21 11.52
Colorado 12.70 12.43 10.68 10.44 7.53 7.52 8.84 8.89 10.60 10.36
Idaho 10.18 10.48 7.80 8.14 6.65 7.17 -- -- 7.99 8.40
Montana 11.91 11.29 10.55 9.87 5.35 6.29 -- -- 9.14 9.07
Nevada 11.79 11.40 8.59 8.16 8.50 8.10 10.27 9.05 9.92 9.55
New Mexico 13.00 13.48 10.51 10.69 5.37 5.81 -- -- 9.60 10.01
Utah 11.17 10.85 8.78 8.43 6.37 6.80 10.69 10.47 8.98 8.83
Wyoming 11.97 11.75 9.59 9.55 6.90 6.60 -- -- 8.27 8.02
Pacific Contiguous 17.21 17.51 16.31 16.34 11.38 11.14 9.59 9.18 15.57 15.68
California 19.86 19.85 19.05 18.74 15.27 15.17 9.64 9.19 18.64 18.55
Oregon 11.18 11.12 8.72 9.43 6.37 5.74 9.13 8.98 8.95 8.86
Washington 10.06 9.93 8.70 8.62 5.43 5.20 9.36 8.70 8.19 8.00
Pacific Noncontiguous 28.57 28.92 24.94 24.94 22.88 24.01 -- -- 25.33 25.81
Alaska 23.56 22.51 19.96 18.50 16.30 17.69 -- -- 20.09 19.48
Hawaii 31.16 32.39 28.93 30.00 25.21 26.23 -- -- 28.18 29.27
U.S. Total 13.30 13.26 11.00 11.03 7.44 7.25 9.71 9.50 11.10 11.01

Table 5.6.A. Average Price of Electricity to Ultimate Customers by End-Use Sector,
by State, August 2019 and 2018 (Cents per Kilowatthour)

....MORE

For a manufacturer like Intel (or data center operators like AMZN; GOOG; FB etc) there is no way they will ever build in Cali.
Previously on California Dreaming::
January 2019  
"Intel to Invest $10.9 Billion in New Israeli Fab" (INTC)
Intel has publicly stated they will never again build a new factory in California. In fact, when they closed Santa Clara's D2 fab in 2008 it was painted as the last Intel manufacturing plant in Silicon Valley.
It was, in fact, the last Intel manufacturing facility in the entire state of California.
Though still headquartered in Santa Clara they do their manufacturing in Oregon and Arizona and now Israel....
August 2015
The California "Energy Miracle" (not) 
This is a subject we've explored a few times from slightly different angles.
This study looks at electricity usage per person whereas our preferred measure was electricity usage per dollar of GDP generated. We also looked at total BTU's including natural gas and gasoline. More after the jump including one of the better songs about solar.
December 2007 (9 months before the financial crisis)
The California Miracle: Ain't
This is just a peek behind the curtain. As the truth that California's economy was based on ever-escalating real estate prices becomes clear, the myths of supremacy will be shown to be just that.
Just one example: it's easy to be energy efficient if you make your living swapping paper.
But that activity should not be confused with wealth creation, it's more of a greater fool or musical chairs type of game....
There's more but I don't remember the links offhand, use the search blog box if interested.
I do remember the song was by some guys who didn't seem to get out in the sun very much.
Ladies and Gentlemen, The Ramones: 


https://youtu.be/1Z9iUdiS3hI