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Google Explains Why It Became an Energy Trader
angry tapir writes "Google has explained how it might use its status as an energy-trading company to increase the use of renewable energy sources in its data centers. In February, the company's Google Energy subsidiary received approval from the US Federal Energy Regulatory Commission to buy and sell power on the wholesale market."
GP said electricity, not energy, they could well be producing more electricity than they use.
For an example of an industry producing more electricity than it uses, may I point you towards something called "power stations"?
It is currently illegal to resell electricity that you generate using 'waste'.
OP is technically correct but its a massive simplification, and not a serious problem for an organized well run company.
It has to do with depreciation and losses. If IBM writes off an ancient server and sends it to the scrapyard, they don't have to pay any property tax on it anymore and can deduct the value of the server off their profits and balance sheets. Its a simplification, but you don't have to pay tax on a loss of money from giving up and scrapping that server.
This applies to pretty much any industry. Let say you're a sawmill. And your accountant deducts the value of some screwed up scrap wood, so you don't have to pay tax on that wood anymore, or at least it offsets the gains/profits that you do have to pay taxes upon. Then, dude installs a cogeneration plant, burns the "worthless" scrap wood, and gets money for it. Unless they tell the accountant/IRS that wood is now a profit center instead of a loss center, big tax problems can develop. Its also complicates the situation if some "valuable" wood is freely given away in the trash can, and some is burned for profit, because its a money laundering/theft/fraud opportunity.
This is one line of thinking that leads to scrapped computer equipment being pushed thru a chipper shredder to make sure no one can ever use it again.
"Science flies us to the moon. Religion flies us into buildings." - Victor Stenger