There’s something to the old saying about not putting all your eggs in one basket, yet that’s what we are doing in the case of electricity generation. Nearly all new electricity generation projects are using natural gas. This lack of diversification increases risks for the future. Why is this happening? There are two reasons. The first is that companies and policymakers are making long-term decisions based on short-term considerations. Natural gas prices fell in 2012 to historical lows. It is foolish to expect that natural gas prices will remain at this level for the 40-year-or-longer life of a new electricity plant, yet that is basically what people are assuming when they commit to gas-fired generation plants based on this price. The foolishness of this is already evident. The price of natural gas rose more than 25 percent last year and has increased over […]