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Microsoft Pollutes To Avoid Fines

An anonymous reader writes "Microsoft's Quincy data center, physical home of Bing and Hotmail, was fined $210,000 last year because the data center used too little electricity. To avoid similar penalties for 'underconsumption of electricity' this year, the data center burned through $70,000 worth of electricity in three days."

295 comments

  1. Wait, what? by Anonymous Coward · · Score: 5, Funny

    You get fined for saving electricity now?
    Where is this world going...

    1. Re:Wait, what? by Jeremiah+Cornelius · · Score: 1

      I toured Quincy.

      What a hole.

      --
      "Flyin' in just a sweet place,
      Never been known to fail..."
    2. Re:Wait, what? by Locutus · · Score: 0, Troll

      they probably over stated how many people would be using their services( servers ) so they got tax breaks etc for putting the data center there with the understanding of how much they'd spend on things like energy. These "expenses" were calculated for how much revenue was put back into the community/State/etc.

      So nobody is using BING and hotmail usage is going down so they are not using enough energy and get fined for not meeting their obligations. Make sense now?

      LoB

      --
      "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
    3. Re:Wait, what? by lister+king+of+smeg · · Score: 0, Troll

      Don't worry its about to pick up with windows 8 requiring a Microsoft email account and having bing built in along with integrated skydrive and Microsoft office (web version) zune music service, xbox live, and every possible windows live component they can cram into it. They will have absolutely enormous usage even if windows 8 is a flop because it will ship by default on so may computers.

      --
      ---Saying gnome 3 is better than windows 8 not so much a compliment as it is damning with light praise.
    4. Re:Wait, what? by Anonymous Coward · · Score: 1

      You know that making shit up and putting "probably" in front of it doesn't make it correct, right?

    5. Re:Wait, what? by GigaplexNZ · · Score: 4, Informative

      Windows 8 doesn't require a Microsoft email account. It merely highly recommends a Microsoft account that doesn't have to be tied to Microsoft email services (mine is tied to GMail). You're still welcome to use a local account and skip the cloud features of Windows 8.

    6. Re:Wait, what? by Kalriath · · Score: 1

      Locutus would never let a little thing like "facts" get in the way of his Microsoft-hate spewing.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    7. Re:Wait, what? by El+Puerco+Loco · · Score: 4, Funny

      Yeah, what kind of sneaky company would ever write it's contracts in such a way that you have to pay for their product whether you use it or not?

    8. Re:Wait, what? by Cajun+Hell · · Score: 4, Funny

      You know that making shit up and putting "probably" in front of it doesn't make it correct, right?

      Probably not.

      --
      "Believe me!" -- Donald Trump
    9. Re:Wait, what? by cdxta · · Score: 1

      $70,000 / 0.0076kwh (cost per kwh) ~=921052Kwh
      2.7 seconds ~= (~0.3 seconds less than time of fastest car to get to 60mph)
      921052Kwh * (3600 seconds) ~= 3315789474 kws(seconds)
      3315789474 kws / 2.7 seconds ~= 1228070176 watts ~= 1.21 Gigawatts
      Yeah, I see what you’re really doing there Google ...
      Those three days were spent umm, filling a capacitor of some kind I think...

    10. Re:Wait, what? by Thumper_SVX · · Score: 1

      To understand the reasons, I suggest reading When the Lights Go Out by Maggie Koerth Baker. This is an excellent book that details the reason the electric generation and transmission infrastructure in the USA (and most of the world) is a trainwreck waiting to happen.

    11. Re:Wait, what? by ToddInSF · · Score: 1

      Why'd you tell ?!

      I've really enjoyed watching all the MS hate boys make fools of themselves for over a year...

    12. Re:Wait, what? by Locutus · · Score: 1

      no shit sherlock, it's an opinion but then again all you seem to be able to do is oppose the statement and not the content. So, attacking the statement does not make it incorrect.

      LoB

      --
      "Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
    13. Re:Wait, what? by KingBenny · · Score: 1

      mhm, it never ceases to amaze, sister miriam and st. Augustine come to mind. That's 140k net, i'd do it if it were my business, who wouldnt ?

      --
      Free speech was meant to be free for all... how can anyone grow up in a nanny state ?
    14. Re:Wait, what? by KingBenny · · Score: 1

      in case anyone answers to this, which i doubt since it's from days ago : please save me the you can't do that because it's wrong part. Any reply has to include an example of a company that actually paid the fine and sucked it up i.o. finding a 'solution' to avoid it, please don't mind if you do. I don't think that will have happened this side of reality yet

      --
      Free speech was meant to be free for all... how can anyone grow up in a nanny state ?
  2. stupid inaccurate title as usual by Anonymous Coward · · Score: 5, Informative

    It was a perfectly sane response to the situation, and btw the generation is from hydro so really what added pollution was there?
     

    1. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0, Informative

      Mod Up!

    2. Re:stupid inaccurate title as usual by icebike · · Score: 5, Interesting

      Title there is ONLY because it was Microsoft.
      Any other company, and it would go unnoticed.

      Why wasn't the Washington state utility board dragged thru the mud on this one instead of a company acting responsibly to reduce energy consumption?

      --
      Sig Battery depleted. Reverting to safe mode.
    3. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0, Flamebait

      Would've gotten the same hate if it'd have been Apple too.

    4. Re:stupid inaccurate title as usual by rgbrenner · · Score: 5, Informative

      Microsoft signed an agreement to use X amount of electricity, almost certainly to get a lower price per kwh. They then used/purchased less electricity than they agreed to, and no longer qualified for the discount (hence the 210k "fine").

      What's the problem here?

      Can I get the same agreement for my home? I "promise" I'll use 1 billion kwh/month. Same pricing if I don't though.. right?

    5. Re:stupid inaccurate title as usual by OzPeter · · Score: 3, Insightful

      so really what added pollution was there?

      Heat pollution from running all those electrical devices.

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      I am Slashdot. Are you Slashdot as well?
    6. Re:stupid inaccurate title as usual by robthebloke · · Score: 2

      I'd heard it was a landscape gardening company with a penchant for dry stone walling?

    7. Re:stupid inaccurate title as usual by AmonRa1979 · · Score: 2

      Except that the hydro-generated electricity produced in Washington does get sold to other States. The use of that electricity by Microsoft meant that some other State probably had to generate electricity by some other means, creating pollution. My guess is that this fee has something to do with the lost revenue since they could have sold that electricity to another State at a higher price if they had enough advanced notice that Microsoft wasn't going to use it. I also suspect that there are incentives for the companies generating electricity to offer it first to Washington State businesses... there are probably laws regulating that too since the rivers in Washington State are a resource of the people of Washington.

    8. Re:stupid inaccurate title as usual by Your.Master · · Score: 5, Insightful

      The problem is that there isn't a rational basis for not just allowing Microsoft to pay for $70k in power and not use it -- donate it for free back to the energy company, if you will. They have to actually waste the electricity to get lower prices. This situation isn't good for anybody.

      - The environment loses because, although this utility is a hydro source, energy is fungible and it's likely that a fossil plant had to make up the difference somewhere in the grid. I could be wrong, it's possible it would just have been dissipated (or just not extracted from the plant in the first place).
      - The utility loses out on $140k.
      - Microsoft has to burn a bunch of energy to no end.

      In this round, Microsoft got off easiest. Last round, the utility got off easiest. But there's no effective difference between this and Microsoft paying $70k and *not* consuming that power, except that the utility potentially can sell $70k of power elsewhere, which is actually good for them, or at worst, non-bad. Why is that not happening?

    9. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      If that was the case it would have been cheaper for Microsoft to pay the fine.
      So the penalty made is cheaper to waste the electricity.

    10. Re:stupid inaccurate title as usual by Your.Master · · Score: 5, Informative

      And actually, according to this article: http://www.nytimes.com/2012/09/24/technology/data-centers-in-rural-washington-state-gobble-power.html?pagewanted=all&_moc.semityn.www

      That's the same argument Microsoft made. The utility company tried to call their bluff, Microsoft wasn't bluffing so they started their heaters, and the utility company folded.

    11. Re:stupid inaccurate title as usual by icebike · · Score: 3, Informative
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    12. Re:stupid inaccurate title as usual by AmonRa1979 · · Score: 1

      I'm not sure what you mean. Microsoft had a choice to burn through $70,000 of electricity (priced lower because the people of Washington are allowing their resource to be used by this electrical company) or pay a fine 3 times higher. The fine is there because the regulation doesn't artificially lower the price for interstate sales. The company could have sold it else where for a higher price, but due to regulation I suspect they are required to sell to Washington State businesses first at a regulated rate. Also, it's not like you can stock up an infinite amount of water behind a dam, so the electrical company needs to know in advance when its electricity is being used. I'm sure they have to plan months in advance for estimated water coming into the dam... contracts must be issued in advance to sell it outside of the State. Coming from Washington, I know that there are regulations like the one I stated above. However, I don't know the extent or limitations put on electrical companies for selling it out of State. So, that's why I used the word "guess" in there.

    13. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      Thats not how hydro power works, Hydro is a great base power, its always running, but its quite difficult to change the load, especially to raise it up to power microsoft needed those 3 days. I can guarantee you the plant had to use an old coal-fire generator, or a natural gas burner to be able to handle the increased load

    14. Re:stupid inaccurate title as usual by OhSoLaMeow · · Score: 1

      Wanapum Dam is not the only supplier of power to Washington State:
      Bonneville Dam provides a significant amount of power to the Pacific Northwest and they are a federal agency.

      --
      They can take my LifeAlert pendant when they pry it from my cold dead fingers.
    15. Re:stupid inaccurate title as usual by icebike · · Score: 4, Informative

      Wanapum Dam is not the only supplier of power to Washington State:

      Bonneville Dam provides a significant amount of power to the Pacific Northwest and they are a federal agency.

      Sigh.....

      Wanapum Dam is the only dam owned by Grant County Public Utility District.
      Grant County PUD is the ONLY power company selling power to Microsoft's Quincy Data Center.
      It is the ONLY dam germane to this story.

      Would you like to throw out any other unrelated facts while you are on a role here?

      --
      Sig Battery depleted. Reverting to safe mode.
    16. Re:stupid inaccurate title as usual by v1 · · Score: 0, Offtopic

      Would you like to throw out any other unrelated facts while you are on a role here?

      Certainly! "If you forget to check your grammar carefully before making a flaming post, you're going to have a bad time."

      role, noun: a part or character played by an actor or actress

      roll, idiom, "on a roll": enjoying continuing good luck or success

      --
      I work for the Department of Redundancy Department.
    17. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      mod up!

    18. Re:stupid inaccurate title as usual by DerekLyons · · Score: 3, Insightful

      This is hydro power - not a stack of coal or a pipe full of natural gas behind a valve, and this complicates things. Those fuels sit still until you need them, but water keeps coming regardless.

      If Microsoft didn't use all the power, then the company didn't use all the water - which can mean they have too *much* water behind the dams when the spring run off starts next year... and they can't simply dump it because that has consequences downstream. (It's the same as if a customer ordered enough widgets from you to fill half your loading dock, and then not only refused to pay them - they refuse to pick them up either.) Most folks don't realize that hydro utilities must budget their water flow - some for irrigation, some for power generation, some for the fish ladder, some for downstream flow... it's a complicated business.

    19. Re:stupid inaccurate title as usual by hawguy · · Score: 1

      It was a perfectly sane response to the situation, and btw the generation is from hydro so really what added pollution was there?

      Since the hydro plants are connected to the same power grid as dirty coal and other plants, every KWh of hydro power that's wasted is a KWh that has to be produced from other sources. If MS didn't use the power in their datacenter, the hydro utility would have sold that power on the grid and some other plant would have produced less.

    20. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      Grant County PUD probably buys power as well from BPA (Bonneville Power Administration), as do all the other utilities in the pacific northwest. But this power purchasing wouldn't be part of Microsoft's contract, just what Grant County PUD does in general already.

      So, Bonneville (and The Dalles and John Day and McNary and probably even Grand Coulee) Dam isn't totally relevant, correct, it's still there in the background.

    21. Re:stupid inaccurate title as usual by Darinbob · · Score: 3, Insightful

      You can let water through the dam without generating electricity.

    22. Re:stupid inaccurate title as usual by rtb61 · · Score: 1, Interesting

      Read the article and certainly the utility is way out of order in not promoting energy efficiency. M$ here's a smart move to make take over the local communities sewerage processing and implement methane maximisation through digestion and collection. Use the methane in those diesel generators, implement some co-generation, making use of the heat output in say in a sports centre, heated pool et al and really work up that energy efficiency. No need to ever rest on your laurels.

      For the energy company, discounting to silly levels to please the state and local community it what will only be a temporary labour solution as M$ will inevitably move on at the end of the effective life of the building.

      Trying to recover that lost state income by anti-conservationist practice is just in the worst taste imaginable. When are individual going to be able to cheat on state and local taxes just like corporations do by threatening to move out. Seriously there should be a Federal law to block state and local tax evasion as it affects cross state boundary transaction. All are meant to be equal under the law and that should include states and local communities, equal application of state and community taxes should be mandated just ask Mitt Romney and Paul Ryan (yeah I know they only mean it when it comes to sticking it to the poor when the rich cheating on state and local taxes it is AOK with those two).

      --
      Chaos - everything, everywhere, everywhen
    23. Re:stupid inaccurate title as usual by viperidaenz · · Score: 3, Funny

      I thought they were a music label?

    24. Re:stupid inaccurate title as usual by Scarred+Intellect · · Score: 1

      As far as I know, GC PUD owns Wanapum and Grand Coulee. Or at least the lease on Grand Coulee. So the power likely comes from a combination of the two.

      In either case, you're right that GP post is misinformed.

      And I'd be surprised if Bonneville provided a significant amount of electricity to Washington (though I don't care enough to check on this). Bonneville does provide a significant amount of power to the PNW region, but so do all our other dams; Rock Island, Priest Rapids, Wanapum, Grand Coulee, Rocky Reach...we do like our dams.

    25. Re:stupid inaccurate title as usual by viperidaenz · · Score: 1

      Not only that, the amount of power produced by a turbine can be controlled semi-independently from amount of water flowing through it. These aren't fixed loads connected to the generators and they're not permanent magnet generators either.

    26. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      Would you like to throw out any other unrelated facts while you are on a role here?

      While not always this pedantic, you invited it, so.....

      The correct word here was "roll", not "role".

      -AC

    27. Re:stupid inaccurate title as usual by BlueStrat · · Score: 3, Informative

      Perhaps you've heard of this company called Apple?
      I think they make computers, or something.

      Lieutenant Dan got us invested in this fruit company or somethin'.

      Then he says we don't have to worry about money no mo'.

      That's good.

      One less thing.

      Strat

      --
      Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
    28. Re:stupid inaccurate title as usual by LinuxIsGarbage · · Score: 1

      The utility company tried to call their bluff, Microsoft wasn't bluffing so they started their heaters, and the utility company folded.

      Are you sure they didn't Start their photocopiers?

    29. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      Why couln't they just pay the "extra" power bill and not use the power?

    30. Re:stupid inaccurate title as usual by Trogre · · Score: 1

      I agree with you there. Hydro has a massive initial impact on the environment (destroying local ecosystems and creating massive sediment downstream). However once that damage is done the actual running of the dam has very little environmental impact.

      Though depending on how the power distribution is set up in that area, a high demand from a large consumer could result in less power from that dam available to the national grid, which could in turn lead to increased demand on other more polluting energy sources.

      --
      "Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
    31. Re:stupid inaccurate title as usual by icebike · · Score: 1

      As far as I know, GC PUD owns Wanapum and Grand Coulee. Or at least the lease on Grand Coulee. So the power likely comes from a combination of the two.
       

      GC Pud owns Grand Coulee?
      Are you sure? I thought it was still owned by its builders, Bureau of Reclamation, or maybe Bonnieville.

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      Sig Battery depleted. Reverting to safe mode.
    32. Re:stupid inaccurate title as usual by icebike · · Score: 1

      Because it was over three times as much as using the power.

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    33. Re:stupid inaccurate title as usual by leonardluen · · Score: 1

      and that unused electricity could have replaced someones fossil fuel based electricity.

    34. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      You are correct, from a social standpoint. But contracts for goods and services are typically between two parties and most comments here relate to that risk analysis. Externalities of cost and social good are unfortunately not part of the United States contracting laws, or most business practices, even if public policy is (which is generally related to extrapolated concepts of fairness, not concepts of social good) - regulations by a state-actor are one of the few ways to force such considerations, but generally result in their own distortion/disruptive impacts on the risk analysis done by the contracting parties.

      Nothing new here. Keep calm. Or don't, but yelling out of our windows didn't do it, what will?

    35. Re:stupid inaccurate title as usual by pspahn · · Score: 1

      Well of course you can. But what happens when you budget the water going through the turbine to generate X in exchange for $Y, and you find out some time later that you were sending too much water through since someone was under-using?

      Do you just try and tell either the water rights owner downstream or the ocean that you want the water back and they need to deliver it to you?

      Doesn't this energy get metered out into the grid based on what is budgeted? ie what is agreed upon in the contract? What happens to it? It's a big ocean where you basically can't get it back.

      The only solution here is storage, or a drastically remodeled financial model so that it gets paid for by... oh yeah.

      --
      Someone flopped a steamer in the gene pool.
    36. Re:stupid inaccurate title as usual by viperidaenz · · Score: 1

      That depends on another power company buying the excess capacity from them.

    37. Re:stupid inaccurate title as usual by Kalriath · · Score: 1

      Common sense would dictate then that the fine would be basically the difference between the usage and the estimated usage - meaning that they do not benefit from the overestimation lowering their prices, but they are not incentivised to waste power simply to get usage up to the estimated level.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    38. Re:stupid inaccurate title as usual by kriston · · Score: 1

      I still don't get why the New York Times is saying the hydroelectric power causes pollution.

      Also, I would also add that the Grand Coulee dam wastes a substantial amount of its energy pumping water vertically to irrigate the Grand Coulee, an ancient, dry riverbed for which the Grand Coulee dam was named and the irrigatino of which was what the engineers of the dam envisioned as its true purpose with hydroelectricity being the secondary purpose.

      --

      Kriston

    39. Re:stupid inaccurate title as usual by icebike · · Score: 1

      Don't think I would call that "waste" when you realize how much fruit comes from that area.

      --
      Sig Battery depleted. Reverting to safe mode.
    40. Re:stupid inaccurate title as usual by sumdumass · · Score: 2

      hmm.. A federal law to block a state and locally controlled issue.... Why not just get rid of the states altogether and you will have your utopia.

      And yes, the obligatory, it is not evasion if it is legal. Tax Evasion has a specific legal meaning and working within the law is not one of them.

    41. Re:stupid inaccurate title as usual by ChrisMaple · · Score: 1

      so really what added pollution was there?

      Heat pollution from running all those electrical devices.

      You can't be that stupid. The water runs out of the dam sooner or later, turning its potential gravitational energy into heat energy either in the air or in the water.

      --
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    42. Re:stupid inaccurate title as usual by Tablizer · · Score: 1

      "Lower our bill, or we'll make you use Bing!"

    43. Re:stupid inaccurate title as usual by black3d · · Score: 2

      Why is this modded insightful when it's completely incorrect? Dams *DO* perform runoffs (dumping it downstream) all the time, whenever their usage doesn't happen to mesh with the amount of actual rainfall, for example. If there's too much rain and they need to relieve some pressure, they do exactly that. If they want to run it through the turbines, they can do that without generating electricity from it if they really want to.

      Remember, the dam you're referring to has budgeted they *will* use that amount of water, and made all appropriate allowances for this fact. If they really wanted to waste the water without generating electricty, that option is always available to them. However, $70,000 of hydropower in the form of water is a mere drop in the bucket, so this scenario you're describing wouldn't even warrant a raised intern's eyebrow.

      This has NOTHING to do with "excess water" or "excess electricty". It's purely this:

      What could happen:
      - Microsoft agreed to pay X per kwH on the basis they'll use Y electricty.
      - Microsoft used 10% less electricty than anticipated.
      - Utility fines them the difference x3. (roughly)

      What happened instead:
      - Microsoft agreed to pay X per kwH on the basis they'll use Y electricity.
      - Microsoft used 10% less electricity than anticipated.
      - Microsoft burns through $70,000 of power to bring up their usage to meet Y.
      - Utility gets paid the X * Y they expected, and is happy. Wheee!

      --
      "The true measure of a person is how they act when they know they won't get caught." - DSRilk
    44. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      Maybe they also left the air conditioner units on to compensate all the heat.

    45. Re:stupid inaccurate title as usual by rtb61 · · Score: 1

      Let's see section 8 US constition "The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;To borrow Money on the credit of the United States; To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;

      See the pesky bit about uniformity and of course, allowing tax evasion in certain states allows gross distortion in commerce. See straight up, by making campaign donation you can effectively cheat on state taxes by gaining an exemption. Large corporation in stead of paying say 10 million dollars in state taxes can pay a public 1 million dollar bribe to gain tax exemption. This results in grossly distorted trade between states and congress is empowered to balance regulate commerce between that states and ensure " all Duties, Imposts and Excises shall be uniform throughout the United States", no state and local tax cheating allowed. You wonder why Mitt Romney and Co want to shift corporate tax bills to state and local government and avoid federal government. So there was definitely intention built within the US constitution to block tax cheating at state and local level. No utopia just being fair.

      --
      Chaos - everything, everywhere, everywhen
    46. Re:stupid inaccurate title as usual by mcvos · · Score: 2

      This stuff happens all the time. Years ago I heard a similar story about greenhouse farmers in the Dutch Westland. Those greenhouses require lots of energy. After investing in all sorts of efficiency measures, better insulation, etc, energy usage went down to the point that they had to pay extra tot he utility companies. Instead, they opened windows to waste heat and drive up their energy usage, in order to reduce their bill.

      It's really common, but it's incredibly backwards and needs to be banned.

    47. Re:stupid inaccurate title as usual by mcvos · · Score: 1

      You can even generate the electricity and sell it, so another utility company doesn't have to burn as much oil or gas.

    48. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      - The environment loses because, although this utility is a hydro source, energy is fungible and it's likely that a fossil plant had to make up the difference somewhere in the grid.

      I believe exactly that was the reason for the fine: Local electric company makes long term plans for supplying energy to its customers. If it can't provide booked energy to its customers, it is going to rely on buying that additional energy from other electric energy providers in the country, and some of them just can't easily dial down their output.

      If Microsoft made a demand for certain big amount of electricity and their energy vendor had to pay to another vendor to have that energy available, then if Microsoft doesn't use it, it is going to be wasted and local electric company will take the hit and pay for it. It is similar to going to a craftsman and ordering custom made furniture, then after the furniture is already made and ready to ship, canceling the order.

    49. Re:stupid inaccurate title as usual by sumdumass · · Score: 1

      You should stay in school and pay particular attention to your civics class. come talk with me after they cover the constitution.

      That federal government has no control over state and local government's taxing. The uniformity part is specifically about federal taxes being levied. It means you cannot tax all blacks one rate and all whites at another rate. It means you cannot charge federal taxes at a higher rate to Ohio then Kentucky or for goods coming from one but not the other. It means they cannot impose a tariff coming from one state unless it is imposed on all states.

      by making campaign donation you can effectively cheat on state taxes by gaining an exemption. Large corporation in stead of paying say 10 million dollars in state taxes can pay a public 1 million dollar bribe to gain tax exemption.

      Despite the fact that it is illegal as you explained it, states giving companies tax breaks are not cheating any state taxes. They are paying their legally obligated taxes and it is not cheating if they pay less then others.

      This results in grossly distorted trade between states and congress is empowered to balance regulate commerce between that states and ensure " all Duties, Imposts and Excises shall be uniform throughout the United States",

      lol.. while those are forms of taxes, they are not the taxes the states have the power to forgive of the companies. They are not the income, property, or other local and state tax abatement. You simply do not know what you are talking about.

      You wonder why Mitt Romney and Co want to shift corporate tax bills to state and local government and avoid federal government

      Do I wonder why? I don't really care. The federal government does not have any say on state and local taxes unless it somehow is discriminatory within the state. State and local taxes are not federal taxes, they are not imposed or collected by the federal government.

      Now I do think corporate taxes should be lower and we should tax dividends more. That's because dividends end up being double taxed and we can accomplish taxing much more efficiently when it is done when the profit is dispersed instead of when it is originally collected. That leave more money for the companies to expand and create jobs or invest in other avenues of commerce else it gets paid to shareholders and it should be taxed once when it is given to the shareholders.

      Of course that is near impossible to effect efficiently due to foreign national owning stock and all.

      So there was definitely intention built within the US constitution to block tax cheating at state and local level. No utopia just being fair.

      A state is not a subordinate political subdivision of the US federal government. Ask yourself why the fed state department deals with foreign affairs and not the states within the country. The federal government is a united face of diplomacy concerning our sovereignty for the several states and between them, not a governorship over them. What you are insisting is a complete violation of the state's self rule. You would effectively be destroying the concept of a state in doing it.

      This problem of state's having different tax rates for people and companies have existed since the beginning of the nation. Some states do not even have income taxes and people and companies strategically relocate to those states for that advantage. Just because your state has finally over taxed the companies to a point that looking at other states to relocate in has become an option for your jobs doesn't mean it is a new thing. I would suggest you examine your own state before trying to screw every other state into being just like it. If that happens, then it jobs going over seas all over again because foreign countries will cater to the jobs by reducing tax burdens on the companies faster then local states will..

    50. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      the generation is from hydro so really what added pollution was there?

      If think hydro is a good solution, think again. http://en.wikipedia.org/wiki/Hydroelectricity#Disadvantages

    51. Re:stupid inaccurate title as usual by leonardluen · · Score: 1

      and that excess capacity can't be sold to anyone when your customer is just wasting energy so they don't get fined for not using enough.

    52. Re:stupid inaccurate title as usual by bluefoxlucid · · Score: 1

      Well, if they hadn't used the hydro power, they could have used HVDC to shift it to a coal-powered part of the grid and burned less coal.

    53. Re:stupid inaccurate title as usual by Anonymous Coward · · Score: 0

      *cough* "on a roll"

    54. Re:stupid inaccurate title as usual by cusco · · Score: 1

      Grant County PUD is part of the Bonneville Power Association. The BPA provided the financial incentives for MS, Amazon, Dell, Google and some others to build data centers in the middle of nowhere so that they didn't have to run more power lines across the Cascades Mountains. It's quite possible that Grant County PUD provides the power, but it does so within the framework worked out by the BPA.

      --
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    55. Re:stupid inaccurate title as usual by cusco · · Score: 1

      I take it you've never been to Quincy. They'd get a lot more methane if they just capped the local manure piles than they would from the sewage plant.

      Why do you think it's 'lost state income'???

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    56. Re:stupid inaccurate title as usual by cusco · · Score: 1

      You wonder why Mitt Romney and Co want to shift corporate tax bills to state and local government and avoid federal government.

      Not for an instant. The neo-cons long ago figured out it was cheaper and more effective to bribe 1000 county commissioners than 1 US senator.

      --
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    57. Re:stupid inaccurate title as usual by monkeykoder · · Score: 1

      You do realize he meant heat from the electrical devices that Microsoft ran to use the electricity don't you?

    58. Re:stupid inaccurate title as usual by shutdown+-p+now · · Score: 1

      If Microsoft didn't use all the power, then the company didn't use all the water - which can mean they have too *much* water behind the dams when the spring run off starts next year

      Not all power in WA is hydro, only about 70% is - the rest, IIRC, is mostly natural gas. So this energy could certainly have been used for something else to burn less gas.

  3. Bad policy + microsoft = Slashdot story by Anonymous Coward · · Score: 1

    The story here is the idiots in state & local government that put in place stupid policies. Microsoft is doing what any rational person would. Burn through the equivalent of 1/3 of (last year's) fine to avoid paying triple that amount?

    What would you do?

    Unknown Lamer really lived up to his name with this one.

    1. Re:Bad policy + microsoft = Slashdot story by mspohr · · Score: 2, Interesting

      Microsoft had a contract to buy a certain amount of power and get a good discount. They didn't buy enough power so had to pay a higher price.
      I don't think this has anything to do with "idiots in state and local government".
      It's a contract matter between the power producer and a corporation.

      If Microsoft had been able to convince more people to use Bing and Hotmail they wouldn't be in this position.
      (Cue the Bing and Hotmail jokes.)

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    2. Re:Bad policy + microsoft = Slashdot story by Anonymous Coward · · Score: 0

      Idiots or not, it's greedy. They could have just charged Microsoft the difference between what they used and what they were contracted to use. There is no reason to penalize Microsoft for not using enough electricity.

    3. Re:Bad policy + microsoft = Slashdot story by Anonymous Coward · · Score: 0

      Considering the rampant homophobia in most of the world, and that the majority of this sites users are guys, binging hotmails might come with negative social stigmas for most who will read this.

    4. Re:Bad policy + microsoft = Slashdot story by lazybeam · · Score: 1

      Power company tried to screw over Microsoft ("they have lots of money, they should just pay more money").

      However, Microsoft didn't get to where they are by writing lots of checks.

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    5. Re:Bad policy + microsoft = Slashdot story by phorm · · Score: 1

      It seems to me something like this (actual units made up)

      We have a contract to buy at least 2000 units of power.
      We only used 1700 units.

      Power company will charge us a fine greatly in excess of 300 units power. This gives financial incentive to needlessly use power.
      The proper thing would be to change a MINIMUM of 2000 units power, not an excessive fine for under-utilization. The power company gets paid for the expected usage, and nobody has to waste power to save money.

    6. Re:Bad policy + microsoft = Slashdot story by mspohr · · Score: 1

      This is a contract between a greedy corporation and a greedy power supplier.
      Contracts can have any terms that they negotiate.
      They are both greedy.
      They both negotiated the terms that they thought would work out best for them.
      Microsoft ended up on the short end of the deal.
      Sometimes it works out that way.

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  4. This is not a Microsoft issue by Jailbrekr · · Score: 4, Insightful

    This is an issue with a utility company. The fact that it was Microsoft is a red herring. If anything, utilities should have a pricing structure that punishes overconsumption and rewards under-consumption. In this instance the utility is ass backwards and they should be the ones who are shamed.

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    1. Re:This is not a Microsoft issue by queazocotal · · Score: 4, Insightful

      Infrastructure costs money to put in.
      If you need signisicant extra infrastructure put in for your use, the normal pricing structure is likely to assume that you will use it, not simply (as a data centre might) leave it idle unless other power fails.

      The real fail is that Microsoft failed to negotiate a proper contract to avoid the needless waste of resource.

    2. Re:This is not a Microsoft issue by Anonymous Coward · · Score: 4, Insightful

      The utility companies have no incentive at all to punish overconsumption. They make more money that way.

      They have very good reasons to punish underconsumption....if you don't buy enough from them they have trouble covering their costs.

      That is why electricity costs always go *up* during economic recessions....people scale back their use and so the companies have to charge more to maintain the same levels of profitability.

      And the utilities can get away with this because they are natural monopolies.

    3. Re:This is not a Microsoft issue by timeOday · · Score: 1

      How many businesses do you know of that encourage customers purchase less of their product? Energy producers won't encourage conservation unless their incentives are altered to make that rewarding. This is not so easy; if done naively you wind up with paradoxes like the most profitable power company being a shell company that exists only on paper and produces no power. (Don't believe it? Look at farm subsidies).

    4. Re:This is not a Microsoft issue by im_thatoneguy · · Score: 2

      Infrastructure costs money to put in. So getting charged 100% of the cost of the electricity makes sense. Charging 300% makes no sense since presumably the usage cost would include the cost of extra infrastructure. "We had to increase our capacity to meet your demand." is a fair argument but unless the utility was selling the power to Microsoft at 33% of the actual cost then it makes no sense.

    5. Re:This is not a Microsoft issue by Mashiki · · Score: 4, Interesting

      There's an easy answer. They could simply build some wind mills or slap in some solar panels and then have the utility pay them at 30-80c/Kwh via a FiT(feed in tariff) like we do here in Ontario for green energy. I'm sure that it would all balance out in time.

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      Om, nomnomnom...
    6. Re:This is not a Microsoft issue by icebike · · Score: 2

      They didn't build this dam for microsoft.
      It was build a long time ago and built at public expense.

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    7. Re:This is not a Microsoft issue by Anonymous Coward · · Score: 0

      Bull. Shit.

      That isn't a fail. That's decade or hundred year planning.

      It isn't my fault you assholes want me to lay copper or pipe a dozen times and shut everything down for your idiots to put in new copper five years from now.

      If I have you put in infrastructure for the future, that's usually called /investing/. And only a psychotic anti ms shill would blame microsoft for needless waste for planning toward future capacity.

    8. Re:This is not a Microsoft issue by Grishnakh · · Score: 1, Insightful

      Wrong, the utilities get away with it because the government, which is supposed to regulate them, is corrupt.

    9. Re:This is not a Microsoft issue by Sta7ic · · Score: 1

      Except in Texas. ERCOT can set some pretty funky rules by not having to worry about interstate commerce.

    10. Re:This is not a Microsoft issue by pla · · Score: 2

      If anything, utilities should have a pricing structure that punishes overconsumption and rewards under-consumption. In this instance the utility is ass backwards and they should be the ones who are shamed.

      The utility company deals in huge aggregates of power, offering a relatively stable pricing structure by virtue of hedging against their know demand curve.

      In the case of overwhelmingly large consumers like a datacenter, utilities offer them reduced rates in exchange for locking in to a given use over a given period of time. When Microsoft says they want a contract for 200GWH over the next year, their supplier has a legal (as well as fiscal) obligation to make sure they actually cover their side of the deal. They pay real money, that day, to "cover the bet", so to speak. Then when Microsoft comes up $210k short of honoring their side of the bargain, the utility ends up on the hook for the remainder. As a result, the utility phrases their contracts to basically force delivery whether they want it or not.

      So really, this boils down to a simple contractual issue. Microsoft used less than they agreed to, the contract specified damages for that, end of story. If you really want to spin this as an environmental atrocity issue, look at it like this - Microsoft agreed to buy X from their CEP. The CEP agreed to sell that power, and then in turn agreed to buy X from someone who actually makes electricity, on the open market. Someone bought that option and then bought real, actual fuel to produce the power it represents.

      So somewhere, Microsoft has effectively wasted $210k worth of fuel. Yes, we should certainly applaud them for using less energy - But they need to reflect that in their supply contracts.

      It sounds great to say that I used less water this year, until you realize that I have an open pipe gushing from my front lawn and "used less" just means I let more of it water the lawn.

    11. Re:This is not a Microsoft issue by Anonymous Coward · · Score: 0

      Infrastructure costs money to put in.

      True, but that should be dealt with by having a higher base cost. For example, in my previous apartment, I was paying about twice as much per month as a base cost to have a natural gas hookup than I was paying in natural gas consumption charges. (e.g. it cost about $20/month even if I didn't use a single therm of natural gas, and my natural gas bill typically was $30/month total. Note that it was a heat-included apartment where the only thing I used natural gas for was the stove, and the gas stove was existing before I moved in, and the landlord wasn't inclined to change the setup.)

      Even with base costs, bulk discounts (or over-consumption penalties), consumption should always be monotonically increasing. There should never be a point at where it's cheaper to consume X+Y units of energy than it is to consume only X units of energy. (Same price, maybe, but cheaper? Never.)

      And that stupidity is squarely on the shoulders of the utility company. Microsoft was probably trying to get the best deal it could, and a plan that does $0.05/kWhr but with a penalty for going under 10 GWhr makes much more sense than a no-limit $0.07/kWhr plan, even if you only expect to use 8 GWhr of electricity and have to dump the remaining 2 GWhr into lava lamps. If those were the two choices (they weren't - the numbers were made up), I don't fault Microsoft for taking the plan with the fine. I fault the utility company for making those the two choices.

    12. Re:This is not a Microsoft issue by king+neckbeard · · Score: 1

      They do if they are competently run and member owned. In such a case, the utility doesn't make money. The purpose of the utility is thus getting the best cost-benefit results. This is possibly most prevalent with water utilities, who often can't feasibly increase their capacity beyond a certain point without enormous costs.

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    13. Re:This is not a Microsoft issue by icebike · · Score: 2

      Company on the hook?
      Pay real money that day?

      You do realize we are talking about a Hydro plant built in 1959 right? Paid for at public expense decades ago?
      There is nothing PAID that DAY.

      There is always a market for hydro power because its so cheap in the Pacific Nortwest that you can
      wheel it all the way to LA at a moment's notice to handle the cooling load of their summer heat waves
      on the spot market.

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    14. Re:This is not a Microsoft issue by JBMcB · · Score: 1

      Not exactly. Power companies have an incentive to maximize the use of their existing power generation capability and infrastructure to within a certain threshold. As long as they are running at near-capacity, they are making the most profit possible (usually.)

      If they run maxed-out, though, then they have to start paying for infrastructure upgrades and maintenance, which cuts into the profit margin.

      This is why the electric utilities in New York City are giving away internet-programmable thermostats, so they can turn up the thermostat during peak electricity consumption in the summer so the grids don't get overloaded.

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      My Other Computer Is A Data General Nova III.
    15. Re:This is not a Microsoft issue by theEnguneer · · Score: 2

      I work in the power industry, so I can tell you that this is not necessarily the utility's fault. It is often the case that it costs utilities EXTRA when large industrial/commercial (ie non residential) consumers UNDER-consume. For example, if you tell the utility you want X megawatts of power the next day, they will bring on extra coal generation to meet that load, which is considered base load, while using cheap wind to fill in the peaking load. However, if you suddenly decide you only need half of that power, the utility can not switch off that extra coal generation, because coal plants have long ramp up and ramp down times. So since the utility can't turn off the coal, it has to turn off the wind. However, due to other contracts, the utility often still has to pay the wind generators the same amount, as if they were still buying electricity from them. So now suddenly the utility is stuck with extra costs of having to burn extra coal, while at the same time wasting the cheap wind power. This is the reason for the fines for underconsumption. This is also the reason why sometimes, on a windy day, you see wind turbines not moving--it is not the utility being stupid. The real culprits here are the people at Microsoft responsible for estimating how much power their servers will require, so that they can draft contract that better matches their actual electricity needs.

    16. Re:This is not a Microsoft issue by Gadget_Guy · · Score: 1

      Charging 300% makes no sense

      i don't think that they were fined 300%, but that the reduce the excess by the time Mixrosoft gad used $70k's worth if power. From the article:

      The utility board capitulated and reduced the amend to $60k

      If nothing else, using that much electricity in one burst is a negotiating tactic as it puts a lot more pressure on the infrastructure than if it had been part of an increase over the entire year. They may have even needed to buy in power from other, perhaps more dirty sources to cope with the peak demand.

    17. Re:This is not a Microsoft issue by AK+Marc · · Score: 1

      So why did the public pay to build a dam to be run by people so incompetent they are paying users to waste electricity?

    18. Re:This is not a Microsoft issue by AmonRa1979 · · Score: 1

      Keep in mind that the water is a resource of Washington State (and Oregon, if you want to consider those downstream on the Columbia). So, the electrical company is most likely required by law to offer the electricity to Washington State people and businesses first, at a regulated rate. Had they known that Microsoft wasn't going to use that electricity, they would have sold it to another State at a higher price (I doubt Washington would regulate the price for interstate sales). Also keep in mind that with a dam, you can't just change electrical generation on a whim. You have to plan well in advance on how much electricity is being consumed and compare that to the estimated amount of water that might flow down the river in to your reservoir. If you are going to sell electricity to another utility company, you need to set up a contract well in advance. You also need to know that you can deliver the energy they purchased. The electricity isn't just sent across country on a whim, it's usually done with very strict contracts made well in advance.

    19. Re:This is not a Microsoft issue by ais523 · · Score: 1

      The more sensible fix would be to charge Microsoft for a certain minimum amount of energy use regardless of how much was actually used, rather than making them actually burn the energy in order to keep costs down.

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      (1)DOCOMEFROM!2~.2'~#1WHILE:1<-"'?.1$.2'~'"':1/.1$.2'~#0"$#65535'"$"'"'&.1$.2'~'#0$#65535'"$#0'~#32767$#1"
    20. Re:This is not a Microsoft issue by icebike · · Score: 1

      Son, power is wheeled all over the US National grid in the US with nothing more than a telephone call.
      Paper work follows later. There exists a spot market for power. Its all very fluid.

      And with a dam you can change electrical generation in 5 minutes flat. Its the perfect peeking power source
      because you can get it with a phone call with zero wait time.

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    21. Re:This is not a Microsoft issue by cbhacking · · Score: 1

      Alaska, the parasitic state that consumes far more federal tax money per capita than any other state in the union? Sure, that makes sense! http://en.wikipedia.org/wiki/Gravina_Island_Bridge (and especially the http://en.wikipedia.org/wiki/Gravina_Island_Bridge#Road_to_Nowhere where Alaska went ahead and burned 25M to absolutely no purpose except avoiding returning it to the nation as a whole).

      Oh, and for the record, this is rural Washington, not Seattle. Most of the state outside of King County (which contains the majority of the state population) votes Republican. Admittedly, I don't know what way this particular town (with its 4-digit population) votes.

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      There's no place I could be, since I've found Serenity...
    22. Re:This is not a Microsoft issue by AmonRa1979 · · Score: 1

      If you've ever worked in power generation, bringing up a turbine when you hadn't initially planned on running it is not a 5 minute process. Likewise, shutting it down or reducing load is definitely not something you do on a whim. You may be able to redistribute an extra load with a phone call, but I guarantee you aren't getting the price you would have if you had set up a contract months in advance. Also, with a dam, if you have saved up too much water behind it, you end up having to open spillways, wasting it. Dams do not simply spin up their turbines and generate extra power on a whim to sell on interstate markets. So save the patronizing "Son" for someone else.

    23. Re:This is not a Microsoft issue by initialE · · Score: 1

      I wouldn't necessarily say it was a fail at all. The usage of power at their datacenter probably ties in directly to the buy-in by consumers of their cloud hosting solutions (office 365, Azure, Dynamics, Skydrive). If they can't get much of a response this year, their usage will be low. However, looking at the way Windows 8 is designed, most of the features cannot be enabled without a Windows Live account, so next year's consumption may expect to increase significantly, and stay up there. When you lay out infrastructure, you don't plan for the short term, after all.

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      Starbucks, Harbuckle of Breath.
    24. Re:This is not a Microsoft issue by shentino · · Score: 2

      Just put a floor under their electric bill.

      X fee to connect, Y per kwh with a minimum of Z

      Bracketing them into a higher rate for using less power creates a sawtooth in the pricing graph.

    25. Re:This is not a Microsoft issue by formfeed · · Score: 1

      The fact that it was Microsoft is a red herring.

      Or Microsoft over-estimated the amount of hot air they would need for their new products. After all, they aren't Apple.

      (ducks)

    26. Re:This is not a Microsoft issue by Kalriath · · Score: 1

      Except that Azure hosts a lot of stuff - including part of iCloud. The usage on it may not be static, but it would be high.

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    27. Re:This is not a Microsoft issue by Anonymous Coward · · Score: 0

      Except the Republitatians refuse to regulate them, they let the market decide.

      And the energy companies are free to do what they want.

    28. Re:This is not a Microsoft issue by sedmonds · · Score: 1

      What kind of dumbfuck utility would agree to pay $0.30-0.80/KWh when their production cost is an order of magnitude lower? Massively subsidising "green" energy may be an "easy" answer, but it's not a reasonable one.

    29. Re:This is not a Microsoft issue by donaldm · · Score: 1

      They didn't build this dam for microsoft. It was build a long time ago and built at public expense.

      A dam can be built at public, federal or even private expense however a dam is just a means of storing water or potential energy if you will. What is needed to convert that potential energy to usable electrical energy are hydro electric turbines and someone has to pay for that as well as the distribution means and all over maintenance.

      --
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    30. Re:This is not a Microsoft issue by Mashiki · · Score: 1

      What kind of dumbfuck utility would agree to pay $0.30-0.80/KWh when their production cost is an order of magnitude lower? Massively subsidising "green" energy may be an "easy" answer, but it's not a reasonable one.

      I'd say plenty of them, it's right common in Canada, very common in Europe, and it happens quite a bit in the US. Greece is paid $0.30-75/KWh for solar and wind. Germany is paying around the same, in fact it's so bad in Germany that nearly 1m people can no longer afford power because their FiT programs have driven the cost of power so high. It happens in the US as well there's plenty of stories on it as well. I'm just far too lazy right now to start digging through for articles on it.

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    31. Re:This is not a Microsoft issue by icebike · · Score: 1

      Thank you Captain Obvious.

      I fail to see why a dam building before Microsoft was formed is justified in charging for power not consumed, when it can sell every kilowatt it can generate.

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    32. Re:This is not a Microsoft issue by chrismcb · · Score: 1

      Microsoft was trying to use the power that it would be charged for.
      Microsoft said, listen, we can waste some energy and not pay the fine... Or we can not waste the energy and not pay the fine.
      The issue wasn't really with the fine, but the issue was with the amount. IF Microsoft used up $70K of energy they wouldn't be fined. So Microsoft started using it up. Fortunately smarter heads prevailed. The wastage was stopped, and Microsoft was essentially fined the difference, and paid $60K.
      I understand what you are saying. The Power Company needed to reserve the power, and thus should be paid for it, even if it wasn't used. But the way the contract was set up, there was only a fine if more than a certain percentage wasn't used. So Microsoft was going to try to use up the difference.

    33. Re:This is not a Microsoft issue by icebike · · Score: 1

      You're wrong (of course), Microsoft was not given the option of Not wasting energy and Not paying the fine.

      They were told that they either had to pay a quarter million dollar penalty OR burn 70k worth of electricity.

      Which. Would you have done?

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    34. Re:This is not a Microsoft issue by jmv · · Score: 2

      You can justify fines for under-consuming. However, there's no way you can justify the fines being higher than the cost of the electricity that was not consumed, as seems to be the case here. This is silly.

    35. Re:This is not a Microsoft issue by waferbuster · · Score: 1
      During economic recessions, the consumption of electricity goes down and hence the price of electricity has to go up to cover the costs.

      During economic booms, the consumption of electricity goes up, and hence the price of electricity has to go up to cover the costs.

      It's like those thermodynamics laws, which paraphrase to "You can't win" and "You also can't break even."

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    36. Re:This is not a Microsoft issue by Ash-Fox · · Score: 1

      If you've ever worked in power generation, bringing up a turbine when you hadn't initially planned on running it is not a 5 minute process. Likewise, shutting it down or reducing load is definitely not something you do on a whim.

      I don't understand the justification behind the penalties being more costly than the fee of the electricity that was not consumed, It's been paid for, so why attach an extra fee on top which encourages wasting electricity further?

      --
      Change is certain; progress is not obligatory.
    37. Re:This is not a Microsoft issue by theEnguneer · · Score: 1

      Actually, I forgot to mention something in my first post, which shows that other users are also affected by Microsoft's overestimation of their demand. The reason is that the utility must pay the same amount to all generators. It starts with cheap sources, like wind, nuclear, and hydro, then adds on more and more expensive generation, such as coal, natural gas, etc. Microsoft overestimating its demand will cause the utility to turn on their next cheapest generator, which will be more expensive than all the generators already turned on. However, it must then pay the new price to all the previous generators as well. Also, when they run the electricity market, it's the typical demand vs supply curve (see http://www.mikeonads.com/wp-content/uploads/2007/05/supply_demand_11.JPG), meaning that because the price of electricity just went up, some guy just lost his bid to be powered. (Technically, it's the independent system operator (ISO) that runs the market, and the utility collects the fine for the ISO, but that's not important here.)

    38. Re:This is not a Microsoft issue by Rich0 · · Score: 1

      If you read the NYT article you'll find quotes like the local government considering it arrogant of MS to complain when they weren't meeting deadlines to deploy a substation expansion. Apparently MS needed more capacity that it was presumably willing to pay for, and they planned for it to be available on-time, and the government wasn't delivering it on-time, and they had the "arrogance" to complain about that.

      And it wasn't like MS just decided to burn the electricity - they called up the regulators and told them that the rule didn't make any sense and asked for an exception. The regulator dragged its feet or felt that a $210k fine for not burning through $70k of electricity was a good idea. MS just demonstrated why it wasn't.

      If my local water company sent me a letter saying that I'd pay less on my bill if I used MORE water, I'd just open the nearest faucet and leave it running all day. You just have to wonder how many misincentives are out there...

  5. wait what? by Anonymous Coward · · Score: 1

    Why would an "fine" for under-consumption (that's a "term in a contract", luv) be greater than the cost of the amount of product not consumed? A first year law student would have identified a clause like that as stupid.

    1. Re:wait what? by icebike · · Score: 1

      Why would there be a fine for underutilization of a scarce resource serving a wide swath of the public power needs in the first place?

      The Dam was built and operated with public funds!!

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    2. Re:wait what? by Anonymous Coward · · Score: 0

      Because of load balancing issues. The contract may state that MS had to use certain power at certain times, and not doing so would through off the demand balance of the utility, potentially causing voltage rises/dips to other customers. Having a large consumer start using/not using power at times can be a bad thing as well. Electricity can't usually be stored, and so its a careful balance between demand and production. Production can only be ramped up over the course of a half hour or so, and only from certain sources.

      So if MS started using power outside of the hours the utility expected, it could lead to problems for the grid as a whole. Too much consumption leads to dips, too little leads to spikes.

      In britain, the national powergrid has to spin up production just as a popular show ends, since 1.5 million people then get up to make a pot of tea.

      http://www.youtube.com/watch?v=WCAzalhldg8

    3. Re:wait what? by Anonymous Coward · · Score: 0

      We're talking about one datacentre over a long period. Try guessing less.

  6. what? by Anonymous Coward · · Score: 0

    but..i don't even...

  7. Strange fee structure by timeOday · · Score: 3, Insightful

    I can see why Microsoft has to plan ahead with the utility to produce the right amount of electricity, and agree to some penalty for a bad estimate, since the extra production and distribution capacity obviously are not free. But what's odd is that the fine for under-usage would be more expensive than the cost of full usage. You'd think the power company could at least reduce production somewhat and so give Microsoft partial credit for what they don't use.

    1. Re:Strange fee structure by im_thatoneguy · · Score: 1

      Agreed. And I would go on to say that this is potentially *less* pollution. If Microsoft took the $140k they saved and put it into carbon offsets they would most likely come out with a negative emission balance by burning through the extra power.

      Microsoft already committed to going carbon neutral for their data center so I would imagine they probably did the cost analysis as: "We could burn $70k worth of power and spend $35k in carbon offsets and still come out neutral while saving $100k".

    2. Re:Strange fee structure by ThatsMyNick · · Score: 1

      As someone else said, the power generation is hydro, so no pollution. They promised the power company a minimum usage level (most likely to get the power company to invest in infrastructure to support the data center well), they might as well keep up the promise.

    3. Re:Strange fee structure by icebike · · Score: 1

      Its Hydro power.

      Its essentially free once you hit the tax payers for the initial construction costs of the dam and generation facilities.

      There are always other customers.
      You flip a switch, close a penstock or two and spool down a couple generators, or you flip another switch and sell your excess over the national grid. You do this without even getting up out of your chair.

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    4. Re:Strange fee structure by countach · · Score: 1

      Yeah, but probably someone had to burn coal to make up for that lost hydro power. Especially since hydro tends to be valuable base load electricity.

    5. Re:Strange fee structure by icebike · · Score: 1

      If so, it wasn't THIS State Power Utility that burned coal.

      This data center is powered by the Wanapum Dam, on the Columbia. They have a reliable watershed, and year around production, and no shortage of customers over the national grid.

      http://en.wikipedia.org/wiki/Wanapum_Dam

      --
      Sig Battery depleted. Reverting to safe mode.
    6. Re:Strange fee structure by Your.Master · · Score: 1

      Electricity is somewhat fungible, within transmission limits. There likely was some power draw from non-hydro sources.

      But anyway, it's difficult to understand how actually using energy is better for anybody than paying as if you used that energy (and not a cent more) while not actually using it. The only thing I can imagine is if there's some stress on the energy company to dissipate the excess power. I doubt very much that comes close to $140k to dissipate $70k worth of power, though.

    7. Re:Strange fee structure by ThatsMyNick · · Score: 1

      But anyway, it's difficult to understand how actually using energy is better for anybody than paying as if you used that energy (and not a cent more) while not actually using it. The only thing I can imagine is if there's some stress on the energy company to dissipate the excess power. I doubt very much that comes close to $140k to dissipate $70k worth of power, though.

      It helps recoup some of the investment the power company made specifically for this data center (I dont see why Microsoft would have agreed to a minimum usage level if they did not want something back from the power company).

    8. Re:Strange fee structure by Anonymous Coward · · Score: 0

      Its Hydro power.

      Its essentially free once you hit the tax payers for the initial construction costs of the dam and generation facilities.

      There are always other customers.
      You flip a switch, close a penstock or two and spool down a couple generators, or you flip another switch and sell your excess over the national grid. You do this without even getting up out of your chair.

      No, it's not "essentially free".

      You even said it yourself: the power could have been sold off to another utility and replaced power generated by a polluting source.

    9. Re:Strange fee structure by icebike · · Score: 1

      That it could be sold does not make it less free to run your turbines than to shut them down. (Neglecting wear and tear, which is pretty minimal on hydro plants).

      --
      Sig Battery depleted. Reverting to safe mode.
    10. Re:Strange fee structure by Anonymous Coward · · Score: 0

      Agreed. And I would go on to say that this is potentially *less* pollution. If Microsoft took the $140k they saved and put it into carbon offsets they would most likely come out with a negative emission balance by burning through the extra power.

      Sorry if this is a newb question. What actually happens when you buy carbon offsets? Where does that money go and how is it used? What kind of companies sell offsets? How do they perform the offset?

    11. Re:Strange fee structure by Anonymous Coward · · Score: 0

      they plant trees for you in some unused part of land, its actually pretty cheap few bucks/tree

    12. Re:Strange fee structure by Anonymous Coward · · Score: 0

      The minimum usage number makes complete sense.

      What doesn't make sense is how:

      Minimum: 100 units, Actual: 100 units, Paid for: 100 units
          is better than
      Minimum: 100 units, Actual: 70 units, Paid for: 100 units

      for anyone involved. In both scenarios, the power company gets paid for the minimum contracted usage, but in the second scenario it gets to "keep" 30 units.

      This is like AT&T charging you extra because you only used 200 of the 250 minutes you paid for the month.

    13. Re:Strange fee structure by Rich0 · · Score: 1

      MS was fine with keeping the promise - they offered to pay for the unused power. The regulators wanted MORE than the cost of the unused power. So, MS just used the power, keeping their promise, in a completely wasteful manner.

      Why should the penalty for non-use be HIGHER than the cost of the power itself? It isn't like the utility could have gotten more money if they didn't sell it to MS. If that were the case, they wouldn't have sold it to MS in the first place.

  8. How? by MobileTatsu-NJG · · Score: 5, Funny

    To avoid similar penalties for 'underconsumption of electricity' this year, the data center burned through $70,000 worth of electricity in three days.

    What'd they do, shift all the load to AMD servers?

    --

    "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

    1. Re:How? by Anonymous Coward · · Score: 0

      What'd they do, shift all the load to AMD servers?

      Probably put cooling systems to maximum.

    2. Re:How? by girlintraining · · Score: 1

      What'd they do, shift all the load to AMD servers?

      Nah, just cranked the AC on high and left all the lights on and spare servers powered up running Prime.

      --
      #fuckbeta #iamslashdot #dicemustdie
    3. Re:How? by Jeremy+Erwin · · Score: 1

      Some sort of heater.

      That is when Microsoft threatened to waste tremendous amounts of power by simply running giant heaters for no purpose, according to utility officials who said they were briefed on the matter by Microsoft, unless the penalty was largely forgiven. The idea was to burn the power fast enough to move closer to the forecast before year’s end.

      Documents related to the case and interviews with utility officials show that Microsoft started burning roughly an additional five million to seven million watts — well over half of the consumption of the entire town of Quincy — in mid-December.

      Quincy, Washington has a population of 6750 in case you're wondering.

    4. Re:How? by ByteSlicer · · Score: 2

      What'd they do, shift all the load to AMD servers?

      Nah, they found an old Pentium 4 desktop, switched that on, and ran Crysis on it.
      But they had to lower the gfx settings because all the lights started to dim.

  9. I hope they used it for Seti by Anonymous Coward · · Score: 1

    But the probably used it to solve something special like optimizing an idle loop.

    When you have free CPU and need to ramp it up and require more power (which in itself is probably only a 20-30% increase in wattage for full load), I would expect that it's done for something useful.

    1. Re:I hope they used it for Seti by king+neckbeard · · Score: 2

      At the very least, they could have mined themselves some bitcoins.

      --
      This is my signature. There are many like it, but this one is mine.
    2. Re:I hope they used it for Seti by dohzer · · Score: 2

      I asked a friend who works there.
      They used it for Folding@Home.
      Such a waste. :(

    3. Re:I hope they used it for Seti by cbhacking · · Score: 2

      Not sure if serious...

      As awesome as SETI is, and as much as I like SETI@Home (started using it during the 90s, I forget exactly when), I think Folding@Home has a better per-CPU-cycle impact on the human race. Protein folding is a big deal for medical research, and it's very hard to automate efficiently. F@H is a somewhat brute-force approach, but it gets results.

      --
      There's no place I could be, since I've found Serenity...
  10. I'm sorry but... by SomePgmr · · Score: 0

    ...to avoid a quarter million dollars in fees, I'd light a valley of old tires on fire, put it out with old refrigerant, and back fill old faithful with the remnants.

    Ok, not really... but what the hell? That just a really, really bad consumption-based contract with the utility?

  11. Bitcoins... by spaceplanesfan · · Score: 1

    Think of all the bitcoins that could have being generated... RIP

    1. Re:Bitcoins... by DanielRavenNest · · Score: 1

      At current exchange rates, the maximum you can earn from bitcoin "mining" (securing the transaction history) is $86400 per day. The current network hash rate is 270 petaflops. So how much they could have earned depends on how many Pflops they could throw at the problem.

  12. Journalists. by Anonymous Coward · · Score: 0

    "Microsoft's desire to avoid a fine combined with a power company's strict electricity usage rules resulted in the software giant deliberately wasting millions of watts of power, according to the New York Times."

    1. Re:Journalists. by SigNuZX728 · · Score: 1

      That was my reaction too when the Verge posted this a couple days ago. The guy is supposed to be a technology journalist, and he talks about them using "millions of watts" of electricity.

    2. Re:Journalists. by Jeremy+Erwin · · Score: 2

      There are 24 hours in a day. If you consume a million watts continuously for nonproductive purposes you can waste 24,000 kWH of electricity. If each kWH costs you 3.5 cents, you can waste 840 dollars per day of electricity. If your contract requires you to use $70,000 dollars worth of electricity by the end of the year,or face a more expensive penalty, you can save money by running those heaters continuously for 83 straight days. But the deadline is in only 14 days! What to do? Easy. Just increase the wastage to 6 million watts.

      The logistics of this little operation sound impressive.

       

    3. Re:Journalists. by ais523 · · Score: 1

      Watts are the right unit to measure power.

      What we really want to know, though, is how many joules of energy they wasted

      --
      (1)DOCOMEFROM!2~.2'~#1WHILE:1<-"'?.1$.2'~'"':1/.1$.2'~#0"$#65535'"$"'"'&.1$.2'~'#0$#65535'"$#0'~#32767$#1"
    4. Re:Journalists. by Anonymous Coward · · Score: 0

      Tell me you've never heard of a power sink or a crowbar circuit?

  13. LOL by Anonymous Coward · · Score: 0

    Meanwhile the EU is banning incandescent light bulbs because of inefficiencies. When society no longer provides a benefit for its members: Society is screwed.

  14. We can solve this with even MORE gov't rules! by Anonymous Coward · · Score: 0

    By God, what we need here are even MORE government rules!

    That will solve this.

  15. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  16. Lobbying by Anonymous Coward · · Score: 0

    Why wouldn't MS send its army of lobbyists to war against this problem? It would serve the greater good.

    Also, a company sitting on a pile of cash should just pay the fine rather than doing the expedient thing which is totally backwards.

    1. Re:Lobbying by nedlohs · · Score: 1

      Why bother. What they did seems to have worked fine.

      Last cycle the utility decided to enforce the penalty for not using thhe contracted amount of electricity which was more than just charging MS for the additional amount and pretending they used it (which I would assume it what MS hoped they'd do). So this time MS concentrated all the additional usage they needed to use up into as small a time frame as they could manage - in order to make it as painful as possible for the utility to deal with.

      And they got their agreement this time without bothering with lobbyists.

  17. Why are the utilities natural monopolies? by tepples · · Score: 2

    And the utilities can get away with this because they are natural monopolies.

    Why are the utilities natural monopolies, other than because of city governments' failure to efficiently estimate the cost of tearing up a road to install conduit?

    1. Re:Why are the utilities natural monopolies? by Anonymous Coward · · Score: 0

      Because I don't want a different utility company digging up the road in front of my house every other month.
      It's bad enough with one company doing this.
      The water company seems to love digging up the road, especially a couple of weeks after it's been freshly asphalted.

    2. Re:Why are the utilities natural monopolies? by Kalriath · · Score: 1

      Our local council gets around this by making it very difficult to get permits, and making it nigh-on mandatory to ride off the back of anyone else digging up the accessways. It's why our fibre deployment is so slow - they're pretty much required to wait until the power company gets bored and rips up more footpath.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  18. Re: by andrew2325 · · Score: 0

    This is madness to me. It makes me laugh like a maniac walking through walmart.

  19. Re:This is not a Microsoft issue - fine not needed by Anonymous Coward · · Score: 1

    Simply: No Fine needed. If they underutilize, just charge them the full amount of what they contracted for.

    Being that this is a public utility company they should be set up to provide the best benefit for the public(Everyone in the state/world) as possible. So it costs money to install infrastructure. Fine. Set their bill up so their regular rate covers the infrastructure their usage demands. If they use less than expected. Meh. Still charge them the full amount. No need for a underutilization fine. If they use over charge them the overage rate for the amount over they use.

  20. Load contracts by Sta7ic · · Score: 2

    The fact that it's M$, as mentioned above, is a fluke. Large power consumers will enter into contracts that say 'we will use Xm to XM power annually with S loadshape, will not consume more than L peak power at once, and will throttle our power use up or down if asked to N times a year fo D days.'

    Deals like this help optimize generation and keeps the grid balanced. Unlike in SimCity, you can't just plop down a stack of generators and wait for load to catch up with it, the generators have to output at a fixed 50/60hz (+/- a little). Like a truck engine, the fuel required to keep a particular speed is dependent on the load at any one time. Forecasting this load then becomes an issue that a *lot* of utilities put time, money, and effort into, so that they can ramp up or down as needed, keep to their own contracts of power quality and quantity, and efficiently use the generators they have. It's not like they're happy about selling less power when the loan payments on the multimillion US$ generator comes up each month.

    The power customer with simply taking the more contractually prudent course of action ~ spending $70k, rather than spending $210k. The fine is as much to cover the fuel burned on generators that were left spinning for the customer as to thwack them upside the head about contracts.

    (disclaimer, I write software for the energy industry)

    1. Re:Load contracts by Kagato · · Score: 0

      Mod parent up.

    2. Re:Load contracts by jrumney · · Score: 1

      The problem is in the contract. It seems it has a preferential rate for prearranged usage, and if MS does not meet that usage, they have to pay back the full standard cost of the electricity used (the "fine") over the contract's term. The problem is that MS was so close to meeting their usage that the "fine" became more than the cost of the extra electricity to meet the contract. The contract should have been written such that this scenario does not arise - the "fine" should be standard rate or top-up payment to the amount of minimum agreed consumption, whichever is lower. Then MS could just pay a $70k "fine", and the utility still has the $70k worth of discounted generation capacity to sell elsewhere.

    3. Re:Load contracts by jrumney · · Score: 4, Informative

      Actually, after RTFA, the real problem seems to be that Microsoft spent too long running off its emergency diesel generators - 100 times as long as its neighbour Yahoo (which was also fined for underestimation of use, and paid up without resorting to these sort of tactics). And it seems that Microsoft did not waste $70k worth of power, they threatened to do so, and even started to do so to make it clear that they were prepared to carry the threat out, but the utility settled for reducing the fine to $60k, and Microsoft called off the wastage.

  21. Slashdot becoming a tabloid page? by Picardo85 · · Score: 2

    Pollutes? Well that's a really extrem term. The used up energy to no end. But that's not directly pollution. With headlines like this it feels like slashdot is becoming a tabloid.

    Most of us here at slashdot know that energy is produced anyway and we are fairly unable to store it. If anything we're unable to store it in any efficient way. If it is like the first post here says too, that it was produced with hydro-power, then where's the problem?

    1. Re:Slashdot becoming a tabloid page? by slinches · · Score: 1

      Where's the problem!?

      Microsoft is hastening the heat death of the universe! Every time someone wastes energy, they're irrevocably releasing entropy into the universe which makes that much less energy available for us to continue to survive. Entropy is the ultimate pollutant! Sure it may only seem to make small reductions in temperature gradients, but the effects add up over time and will eventually lead Earth to be a uniformly cold lump of mass completely devoid of life!

      Microsoft has polluted the world with huge amounts of entropy, purely for profit. This is unacceptable. The externalities of this type of greedy, reckless behavior should be accounted for. Something must be done!

      To help curtail entropy pollution and extend the Earth's habitable lifetime, I propose we cap entropy production. Anyone exceeding more than a certain amount of entropy increase per year should be fined or we can sell some sort of entropy credit. Either way, the money should be used to research entropy reduction technologies.

      Sincerely,

      Al Gore

      --
      Knowledge Brings Fear
  22. Scalpers by tepples · · Score: 1

    How many businesses do you know of that encourage customers purchase less of their product?

    During the launch of a new highly anticipated gadget, such as a game console or a tablet computer, the manufacturer may place limits on the number of units that each customer can buy so as to discourage scalpers.

    1. Re:Scalpers by causality · · Score: 1

      How many businesses do you know of that encourage customers purchase less of their product?

      During the launch of a new highly anticipated gadget, such as a game console or a tablet computer, the manufacturer may place limits on the number of units that each customer can buy so as to discourage scalpers.

      Just curious: if I am a company, why would I care about scalpers?

      The only thing I can think of would be items like a game console, where the console itself is not very profitable and may even be a loss-leader. In that case, you want as many different customers to own one as possible so you can make the money on games, streaming media and other services. But then, scalpers want to make money too, so pricing themselves above what the market will bear isn't in their interests either.

      So other than a "maybe", I can't think of a good reason why companies care about scalpers. Could you explain?

      --
      It is a miracle that curiosity survives formal education. - Einstein
    2. Re:Scalpers by zenyu · · Score: 1

      Just curious: if I am a company, why would I care about scalpers?

      The only thing I can think of would be items like a game console, where the console itself is not very profitable and may even be a loss-leader. In that case, you want as many different customers to own one as possible so you can make the money on games, streaming media and other services. But then, scalpers want to make money too, so pricing themselves above what the market will bear isn't in their interests either.

      I think you pretty much explained it. Because you sell one expensive to produce product and many cheap to produce auxiliary products. You want to price the main product car, phone, printer, bicycle, stroller, pretty much any physical product low so as to get the consumer on the hook. Then you price the navigation system, screen protector, toner, light-weight wheels, cup holder, pretty much any auxiliary product with enormous profit margins. If scalpers buy up a significant portion of your initial production capacity it not only means your ultimate customers pay more and so they are less able to afford the add-ons it also means they didn't need to enter your store to buy the low margin product so you lost your best opportunity to sell the high margin add-ons.

      Scalpers are necessary for an efficient market and shouldn't be discouraged by any good government, but there are plenty of reasons why a producer might not like scalpers in their market.

    3. Re:Scalpers by Kalriath · · Score: 1

      I would assume it may also be to try and create good impressions of the company in people's minds. Someone who has to pay 4 times retail for a product because of scalpers will generally associate that with a negative experience, which may sour them on purchasing that product in future.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
  23. this was, of course, a stupid clause by goffster · · Score: 2

    Simply stating "Your minimum electric bill shall be x" would have made everyone happy.

    1. Re:this was, of course, a stupid clause by Anonymous Coward · · Score: 0

      My thoughts exactly. I wonder why the lawyers negociating the contract couldn't think of something like that.

  24. Parallel: Punished for Conserving Water by skegg · · Score: 1

    Here in Australia we're regularly reminder to be 'water wise' because we live in such an arid country. (I'm not arguing this point.)
    Earlier this year we were whacked with higher water rates (Sydney) explicitly because the water board's revenue fell because general water conservation proceeded too well.

    And get this: a desalination plant was recently constructed in Sydney which the government is contractually obliged to run for x hours per year. Because of that, they redirect fresh water from dams (which are now, thankfully, relatively full) into the ocean because otherwise they wouldn't need to run the desal machinery.

    Now, I can see how each of these individual decisions was arrived at. But I can't help but wonder if some future, more enlightened society will look back and shake their heads at how small we were.

  25. One Newer MS datacenter has it's own substation by Joe_Dragon · · Score: 1

    One Newer MS datacenter has it's own substation on site and substations are not cheap to build so that cab be why part of the deal was that we where to use X power or pay a fine.

  26. This reminds me of California's water problem by Anonymous Coward · · Score: 1

    It hasn't happened to us AFAIK, and even if it did the owner pays water, but...

    I heard in the East Bay some residents were paying higher rates because they failed to reduce their water consumption during a dry spell.

    The problem? They were already consuming less water before the drought, and had no room to reduce. That's right. The utility was basing rates on the percentage of reduction during times of tight supply, instead of absolute usage.

    Result? I find myself thinking, "better let the faucet run long when there's not a drought, so that when there is a drought I can conserve and the landlord won't call me up and tell me the rent is increasing because utilities cost too much".

    Really, any sane policy is going to be based on how many rooms you have in your house. The asessors know this, and it's public knowledge so the utility could pull it. Legal occupancy is based on rooms in the house, so as a pleasant side effect people that are jamming too many occupants into a house would pay higher water bills too.

  27. PPA's by ArhcAngel · · Score: 5, Interesting

    Basically large companies need to know what their costs are going to be long term. They enter in to Power Purchasing Agreements with electricity generators much like leasing a building. Based on these agreements the electricity generator knows what is expected of it's power plants and maintains them to meet these requirements. If demand is lower than expected they may have to shut down a plant or two since there isn't an economical way to store electricity on such a large scale. It costs a lot of money to shut down one of these facilities and even more to ramp back up. Rather than eat these costs many PPA's include penalties that will cover these contingencies. Since I'm tl;dr the article I don't know if that's what happened here but it makes sense that if Microsoft overestimated it's power needs on its PPA then these fines would have been to cover the plants down time. Since another comment mentioned hydro generation I'm guessing Microsoft running inefficient on purpose to avoid the fines didn't hurt the environment too much.

    --
    "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    1. Re:PPA's by ewanm89 · · Score: 5, Informative

      There is a an economical way to store large amounts of electricity though, it's called pumped storage plant, basically it's a hydroelectric plant where the generators and turbines can be used in reverse to pump water back up to the top reservoir, then when needed it's released again to get electricity again. Turning a mountain into a very big gravity powered rechargeable battery.

    2. Re:PPA's by Anonymous Coward · · Score: 0

      Which is really economical in places like Kansas where you have to first build a hill to put the reservoir on.

      You can't just build one anywhere, and you can't do it cheaply. They aren't built in case someone misestimates their usage. They are built where they know they will need them.

    3. Re:PPA's by Darinbob · · Score: 4, Informative

      Utilities make money by selling electricity, it's typically in their best interest to encourage more energy use. California and some other states have "decoupled" the revenue to try and fix this. Utilities are given fixed pricing; if the customers use less electricity then the utilities pocket the difference, if the customers use more electricity the utility loses money. Now it's an economic incentive to encourage customers to conserve, get rid of inefficient power generators, improve the distribution and transmission infrastructure, etc.

    4. Re:PPA's by hairyfeet · · Score: 5, Insightful

      Well then nobody should bitch when ANY company, be it MSFT or fricking Toys R' Us, blows through power just to keep from getting fined. If the cost of blowing through the power is less than the fine, which thanks to the agreement it most certainly is? Then they would be dumb NOT to blow through the power, and would get called to the carpet for blowing shareholder's money by taking fines over meeting their end of the agreement.

      But I'm sure just as the article's flamebait headline suggests its just another excuse for clickbait. if people have a problem with this? then they should outlaw those agreements.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    5. Re:PPA's by sumdumass · · Score: 1

      Does California still have the rolling brownouts?

    6. Re:PPA's by D'Sphitz · · Score: 3, Insightful
      Correct, from TFA:

      Microsoft could incur approximately $70,000 in power costs to avoid the $210,000 penalty, resulting in real savings of $140,000.

      "Flamebait headline" is also correct.

    7. Re:PPA's by Immerman · · Score: 4, Interesting

      Since folks seem to be listing their favorite emerging high-capacity energy storage technologies here I'll add my own - liquid metal batteries. Batteries the size of shipping containers containing the three layers of molten materials: a metal base, a lighter electrolyte, and an even lighter metal "cap". Since the electrodes are liquid they don't suffer from the degradation that eventually renders normal batteries ineffective. And as long as they're seeing heavy enough usage the internal resistance provides enough heat to keep everything molten, and the potential charging/dischargeing current is pretty phenomenal since you don't have to worry about destroying your electrodes in the process..

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    8. Re:PPA's by Bill_the_Engineer · · Score: 1

      It's easier to think of it as a bulk discount agreement. Microsoft agreed to purchase at least X amount of electricity and in return the power company agreed to provide a discount based on that amount. If Microsoft failed to use X amount of electricity then the power company would back charge for the difference between the agreed rate and the non-discount rate.

      --
      These comments are my own and do not necessarily reflect the views or opinions of my employer or colleagues...
    9. Re:PPA's by Anonymous Coward · · Score: 0

      What is the point of burning it then? If they pay the same money, then burning is useless.

    10. Re:PPA's by hairyfeet · · Score: 3, Insightful

      Thank you. If someone told you to flush this hundred dollar bill or get a $2000 fine, who wouldn't flush the money? they signed the agreement, for whatever reason they didn't need the power, and now the time is due they either have to make it the usage to fall into the agreement or pay a hell of a fine for failing to live up to their part of the bargain.

      The sad part is if this would have been say Dillard's, or The Men's Warehouse? Nobody would have gave a rat's ass, but because its MSFT the writers can use it for clickbait because they know the zealots that foam when they see the name Microsoft can use it for their two minutes of hate.

      Frankly I don't give a shit about any corp either way, if their tools do the job fine, if not I go somewhere else. but to get your panties in a wad because gasp! shock! a company had to fulfill an agreement? There is hatred and there is batshit zealoty and I'd say the clickbait falls into the latter.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    11. Re:PPA's by HungryHobo · · Score: 1

      you need
      1: massive amounts of land.Expensive.
      2: massive amounts of water.Region dependant.
      3: to be willing to lose about 50% of the energy in the process of storing and releasing it.

    12. Re:PPA's by ewanm89 · · Score: 2

      hehehe, the two in the UK were built to absorb load of nuclear power stations during excess off-peak generation as you have to keep nuclear power stations running 24/7, only the nuclear power plants weren't built so the 3rd pumped storage station was scrapped and the 2nd was repurposed to smooth out extremely short term over generation and sudden drain being able to go from standstill to full load in 75 seconds. They literally watch TV in the control room to wait for the credits to roll or the moment the football match finishes so they can spin it up and absorb the load of everyone getting up and turning the kettle on across the country.

    13. Re:PPA's by ThatsNotPudding · · Score: 1

      Along with lying about shoddy gas pipeline welds and re-designing nuclear steam tube bundles that rattled so hard they eroded holes in themselves within weeks of installation.

    14. Re:PPA's by Trahloc · · Score: 1

      Tiered pricing isn't always like that. Think of it as a single quantity for $1.50, but if you buy at least 100 they'll sell them for $1 each. Turns out you only needed 80 units but if you don't buy another 20 you have to pay $120 for those 80 units ... or you can buy 20 more and save $20. That's what Microsoft did, roughly.

      --
      The Goal: A long simple life filled with many complex toys.
    15. Re:PPA's by smooth+wombat · · Score: 0

      The reason no one would care about Men's Warehouse is because no one cares about Men's Warehouse. It's a schlock operation with crappy inventory.

      --
      We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
    16. Re:PPA's by Anonymous Coward · · Score: 0

      To store energy on a dam, you close the turbines and the water level will raise. You d'ont have to pump water to the dam.

        The only requirement is to have more turbine capacity than the average dam capability and you can modulate the electricity production to acomodate peak demand.

      A hydroelectric plan can adjust the power production in few second, but thermal electricity production take hours to go on or off.
      If you use wind turbine network, the hydroelectricity power can compensate for winds variation.

    17. Re:PPA's by cusco · · Score: 1

      MS located its data center in Quincy because the electricity is cheaper. Bonneville Power Association gave them a huge financial incentive in order to prevent having to pull more power lines across the Cascade Mountains to Seattle/Redmond. They're saving so much energy because of Hyper-V virtualization of servers, and the BPA is annoyed that their usage isn't meeting the models used to grant them the discount. Since Amazon, Dell and Google all have data centers located in the same area I'd be surprised if this were an isolated occurrence.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    18. Re:PPA's by cusco · · Score: 1

      They didn't need the electricity because of server virtualization. There are big chunks of most of their data centers that are empty because of server consolidation, which is probably why they're not currently building any new ones.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    19. Re:PPA's by MattskEE · · Score: 1

      Does California still have the rolling brownouts?

      No, we haven't for a long time.

    20. Re:PPA's by hairyfeet · · Score: 1

      Which makes perfect sense, why fill rooms with heat generating boxes when these new monster AMD and Intel units can run dozens of server VMs on a single system? Now that they have finished this contract I'm sure they'll come up with a new one that takes the switch to VMs into account and next year they won't have to waste the power, problem solved.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    21. Re:PPA's by icebraining · · Score: 1

      I think parent's point is that MS could have bought but not actually used the electricity.

    22. Re:PPA's by Anonymous Coward · · Score: 0

      I like what they did where I lived, about 3 years ago the Power company stated they were having power generation issues do to the large demand and that foreign power would need to be purchased and greatly increase our costs. So the government stepped in, and spent millions, mostly on rebates on light fixtures, conversions of house electric heating to natural gas, and house insulating, and on advertising convincing people to become frugal with electricity. And we did it, almost everyone I know converted to CFLs, upgraded appliances, re-insulated their houses and almost everyone switched from forced electric heat to natural gas or propane.... So, a year later, we hear how great we did, we did so good that the electric company needed to raise the rates since their profit was DOWN! So up went our rates anyways, screwed if you do, screwed if you don't....

      As a side note, I didn't upgrade/change my furnace (a 25 year old 95% efficient electric forced air that works perfectly AND after testing was still 95% efficient as of today) but know a lot who did and now they are all complaining due to the price of natural gas (it is so high the government is now investigating that....)

    23. Re:PPA's by hesaigo999ca · · Score: 1

      But this does not make sense, I know that if a home goes solar, they can have the extra electricity bought back for a certain price.....
      how could you then be told because you had enough to buy back , you will be fined.
      Maybe a lawyer did not see the fine print when MS signed the contract, but it definitely does not make any sense to be charged for being self sustaining.

    24. Re:PPA's by cusco · · Score: 1

      Kind of a cool thing is that " these new monster AMD and Intel units" are the big cargo containers full of servers that have their own AC and UPS. They've had to whack holes in the walls for rollup doors to get them inside the buildings. There's one data center they call 'The Trailer Park' because made up of nothing but these things, a couple of double-wides for the admins, and a fence around it. Far more efficient than a room full of row after row of server racks.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    25. Re:PPA's by Myopic · · Score: 1

      Thank you for explaining that. I would like to point out that a "fine" comes from the government so I find this headline and article misleading. Nobody was fined. Microsoft paid a cost for power according to its contract with the power company. There is no problem with this, except that they need to negotiate a new contract.

    26. Re:PPA's by ArhcAngel · · Score: 1

      Because if they did that it wouldn't change the fact that the power plant would need to shut down. If it stayed operational that electricity would still hit the grid and since nobody used it would overload said grid. I'll let someone else research the fines associated with overloading the power grid.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    27. Re:PPA's by hairyfeet · · Score: 1

      What I think is funny is how every hack is writing about "The death of the PC" when in reality these monsters chips have just gotten so damned powerful that they obliterate any job Joe average can come up with so they don't replace until they die. Hell I have a customer whose running the latest Solidworks on Phenom I X3s, just slapped in some HD5450 GPUs to keep the graphics up with the CPU and they are quite happy. You have Tiger selling quad kits for $300 fully loaded, the amount of power we get for practically peanuts is just insane.

      Hell my GF is the type that only goes to FB and plays her little flash games and I replaced her old P4 with an Athlon X3 with HD5450, simply because it was the cheapest unit kit had. Needless to say its like greased lightning, even my E350 netbook which is the "wimpy chip" from AMD multitasks like crazy and plays 1080p over HDMI, just nuts.

      So I can see why they are switching to shipping crates of monsters, a couple of crates dropped anywhere gives you a datacenter that is insanely overpowered and can run as many VMs as you want, just crazy how much power you get today.

      --
      ACs don't waste your time replying, your posts are never seen by me.
    28. Re:PPA's by ArhcAngel · · Score: 1

      Many states have mandated power companies purchase excess power from residential customers who supplement their power with some form of renewable source to encourage more investment in these technologies by end users. Deployment of most of these renewable technologies is prohibitively expensive for the average homeowner. So much so it would take them over 20 years to recoup the cost in electricity savings. Microsoft did not have any generation to "buy back". They had agreed to purchase x kWh of electricity ad ended up not needing that much. The power company had already invested the money for the electricity in to the raw material to produce the electricity and thus Microsoft was obliged to cover those costs under their PPA.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    29. Re:PPA's by hesaigo999ca · · Score: 1

      So because of the fact that they had this is their mentioned contract, they could not have transferred it to some other source that may have needed it.
      We will buy for 10,000$ and only used for 9,000$ so if we pay for the full 10,000$ but you still owe us for the 1000$ that we can do what we want with...
      such as resell it to someone else.... unless of course that was in their contract as well?

    30. Re:PPA's by ArhcAngel · · Score: 1

      Think of it as a lease. If I agree to lease an apartment for 12 months but move out after 10 I am still obligated to pay the last 2 months or pay a penalty. If I pay the penalty I can leave whenever I want but the owner can lease my apartment again too.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    31. Re:PPA's by Crosshair84 · · Score: 1

      Probably cool until you have to repair the dammed thing. I have to put up with phone and video equipment that was installed using prebuilt cabinets. They are nice and compact, but if something breaks you are screwed. Everything is crammed so close together that even troubleshooting to see what is wrong takes 10 times longer than it should and then repairing it is like working with Russian Nesting Dolls.

    32. Re:PPA's by hesaigo999ca · · Score: 1

      Or i can sublease it for the last 2 months too...that is my legal right.

  28. Re:Look at this for what it is..... by icebike · · Score: 1

    #2 is totally wrong. The Hydro plant was built before Bill Gates was out of diapers. http://en.wikipedia.org/wiki/Wanapum_Dam

    Microsoft moved there because Grant County PUD was having problems selling all their power, and it was dirt cheap to build there.

    Since then, power demand has gone up, and GCPud has a multitude of customers, anywhere on the national grid.

    --
    Sig Battery depleted. Reverting to safe mode.
  29. devil in the details again by PopeRatzo · · Score: 2, Interesting

    Look a little closer...

    Microsoft, when it was looking for a place to locate, chose this rural Washington town because the town offered them electricity at about 1/3 the regular going rate, as long as they purchased a certain amount of electricity from this municipal utility.

    It was a contract, one of those things that both sides are supposed to honor.

    Microsoft didn't have to "wastefully burn" the additional energy, but they were contractually obligated to meet the conditions of the contract: cheap electricity if bought in bulk.

    Microsoft could have just met the contractual obligation by paying what it had promised to pay.

    The entire "wastefully burning" energy was done by Microsoft to try to shame the municipality into giving them an even sweeter sweetheart deal, something that mega-corporations are doing in all 50 states. Create enough negative publicity ("Government forces Microsoft to waste electricity!!!") and the municipality would say, "Sure, fine, don't pay us what you promised to pay us when we gave you the land, built the infrastructure that your datacenter required and gave you enormous tax dodges on top of that. Just stop saying we forced you to waste energy!".

    This is why you have to look a layer or two deeper than the headline or summary when you see a story that seems a little too neatly designed to create outrage.

    --
    You are welcome on my lawn.
    1. Re:devil in the details again by guidryp · · Score: 2

      Look a little closer...

      Microsoft, when it was looking for a place to locate, chose this rural Washington town because the town offered them electricity at about 1/3 the regular going rate, as long as they purchased a certain amount of electricity from this municipal utility.

      Yes, Microsoft should have just paid the fine.

      With the stunt they pulled the municipality should declare the cheap energy contract void and charge them full price for power from now on.

      Load forecasting is a huge deal. In my province we can end up having to Pay other jurisdictions millions of dollars to take away our excess power when the forecast is off.

      Microsoft screwed the municipality twice, first by significantly missing their estimates, creating a low load situation, then again with the heater stunt, by creating a high load situation.

      This should be a lesson for the next jurisdiction looking to sign one of these generous deals to lure a company that will stab them in the back at the first sign things aren't going their way.

    2. Re:devil in the details again by PopeRatzo · · Score: 1

      Yes, Microsoft should have just paid the fine.

      Not a fine. It's the amount that they agreed to pay.

      When you pay for 2 gigabytes of broadband, and use 1 gigabyte, you still pay for 2 gigabytes, because that's what's in your contract.

      Microsoft got the municipal sweetheart deal to end all municipal sweetheart deals. Now they're trying to renegotiate the terms in the press.

      --
      You are welcome on my lawn.
    3. Re:devil in the details again by Kalriath · · Score: 2

      I'm pretty sure Microsoft would have been quite happy to pay what they promised to pay - instead the municipality is trying to charge them three times the estimate (seriously - the consequence for overestimating power usage by $70,000 was $210,000. That is unjustifiable).

      But hey, don't let facts get in the way of your anti-Microsoft hate spewing.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    4. Re:devil in the details again by blindseer · · Score: 1

      Did Microsoft go to the press? As I read it they went to the utility board with their ultimatum, lower the fine or we will consume the power as we contracted.

      It appears both sides were quite willing to fulfill the contract as written. It appears the details of the contract left a bit of a loop hole for the consumer that the provider did not anticipate. This allowed Microsoft to operate withing the law and the contract to avoid the fine. However, performing as dictated by the contract would make the utility look bad, not make them as much money, and encourage a recurrence of losing both money and face in the future.

      --
      I am armed because I am free. I am free because I am armed.
    5. Re:devil in the details again by PopeRatzo · · Score: 1

      I'm pretty sure Microsoft would have been quite happy to pay what they promised to pay - instead the municipality is trying to charge them three times the estimate (seriously - the consequence for overestimating power usage by $70,000 was $210,000. That is unjustifiable)

      But that was the agreement that Microsoft made.

      --
      You are welcome on my lawn.
    6. Re:devil in the details again by kaatochacha · · Score: 1

      And by stupidly burning the power, they would have been fulfilling that agreement. There wasn't anything in the contract about using power and specifiying that it has to be for useful purposes.
      Instead, they told the power company what they were planning,and asked for a rate reduction.
      If the power company had said no, they would have continued wasting to meet the terms of the contract.
      To be honest, if it was reduced in scope to a personal level, and I had the same contract, I probably would have wasted power as well.

    7. Re:devil in the details again by shutdown+-p+now · · Score: 1

      RTFA - it was a fine. The amount that was agreed to pay was 3 times less than the fine - which is precisely Microsoft burned the extra power instead to fulfill contract terms rather than paying the fine. It was simply cheaper.

    8. Re:devil in the details again by Kalriath · · Score: 1

      I'm pretty sure Microsoft would have been quite happy to pay what they promised to pay - instead the municipality is trying to charge them three times the estimate (seriously - the consequence for overestimating power usage by $70,000 was $210,000. That is unjustifiable)

      But that was the agreement that Microsoft made.

      I don't care. That's not what you said. You said Microsoft could have met the contractual obligation by paying what it promised to pay, but what you actually seem to now be claiming is that they should have paid three times what they promised to pay, and I'd bet it was a Red Hat or Google or suchlike data center, you'd be claiming the exact opposite.

      Besides, I very much doubt you'd tolerate your power company shovelling this crap on you - especially since it doesn't form part of the contract.

      --
      For a site about things like basic rights, Slashdot users sure do like to censor "dissent".
    9. Re:devil in the details again by PopeRatzo · · Score: 1

      You said Microsoft could have met the contractual obligation by paying what it promised to pay, but what you actually seem to now be claiming is that they should have paid three times what they promised to pay

      You're not following. The agreement was for Microsoft to get energy for 1/3 the going rate, as long as they used a certain amount. The contract appears to have been pretty straightforward, if you believe the small town. But of course, it's impossible that Microsoft might want to bully anyone, and it's much more likely that the small town is just making stuff up, right?

      Besides, I very much doubt you'd tolerate your power company shovelling this crap on you

      You have confused two separate issues to make a point that doesn't apply to either.

      --
      You are welcome on my lawn.
    10. Re:devil in the details again by Rich0 · · Score: 1

      Microsoft could have just met the contractual obligation by paying what it had promised to pay.

      MS offered to pay the cost of the electricity, but the utility insisted on payment of the fine as it was stated in the contract. MS said, sure you can do that, since that is in the contract. However, the contract ALSO allowed MS to simply use the agreed-upon amount of power instead, so they just burned a ton of power up.

      MS completely complied with the agreement. That doesn't change the fact that the agreement was dumb, bad for the environment, and bad even for the general public, who would have benefitted if MS were given the "break" since the utility gets $70k either way, but if they just took the money they'd have $70k worth of unused electricity to sell elsewhere and make even more money with.

      The policy is dumb, and nobody with half a brain will have a problem with under-utilization when it costs less to waste power than pay the fine.

    11. Re:devil in the details again by PopeRatzo · · Score: 1

      MS completely complied with the agreement. That doesn't change the fact that the agreement was dumb, bad for the environment, and bad even for the general public, who would have benefitted if MS were given the "break" since the utility gets $70k either way, but if they just took the money they'd have $70k worth of unused electricity to sell elsewhere and make even more money with.

      Not dumb at all. If you look around new plants opening up all over the US, companies are just raping localities. They come in and demand tax abatement, new infrastructure, and (get this) they demand an agreement where for 25 years, the company is allowed to collect state income taxes from each and every employee and then just keep it.

      Think about that last for a minute. It's insufficient that the companies get tax forgiveness and abatement, but they also want a kickback from every employee. In other words, "You want our facility in your area, well just pay up or we'll go down the road to another municipality that will pay up".

      It's a way of shifting the cost of doing business onto third parties: us. Even if we're not customers of said company, we are now supplementing their bottom line just by living in the municipality where the new plant is built.

      What better way to illustrate one of the ways wealth is funneled upward in our economy?

      --
      You are welcome on my lawn.
    12. Re:devil in the details again by Rich0 · · Score: 1

      How does the fact that every big company out there is allowed to get with murder have anything to do with this particular policy being dumb.

      The problems that you brought up have solutions, but they don't involve giving companies incentives to waste electricity. If tax policies are messed up then fix them, don't try to make up for them by messing up energy policy as well.

  30. They should have paid the fine, by pecosdave · · Score: 1

    Then they should have sounded the horn in their advertising saying they actually pay fines for not using enough power, and link to proof.

    See how long the power company keeps fining them, I don't care if they did sign a contract. A monthly minimum amount with the ability to buy more, like mobile phone minutes would have been the better option than a yearly amount with options to fine.

    --
    The preceding post was not a Slashvertisement.
  31. I think you missed his point. by Anonymous Coward · · Score: 0

    His point was: they shouldn't have to.

  32. "commercially unproductive manner?" by hawks5999 · · Score: 1

    I'd be curious if they converted that $70,000 of power into $70,000 worth of bitcoin during that 3 days. Seems like it would be a good way to offset the costs.

  33. All Hell To Follow by Anonymous Coward · · Score: 0

    A penalty for failure to use power signals the beginning of a coming economic horror story. As homes and businesses start to provide their own energy it means that any given square in a power grid will pay less and less to the power companies. That means that at first only small numbers of people go off the grid and there is a small increase in unit cost to cover the loss of sales. Then we get to the point at which half of all homes and businesses no longer purchase power and the cost to those still on the grid more than doubles. Tiny businesses and poor families will be the first to fail. By the time two thirds of homes and businesses are off the grid the cost of power to a home or small business will be crushing. It is rather like trying to provide high speed cable in remote areas. When homes are twenty miles a part there are lots of problems supplying cable or even phone service. Now the perverted notion that those that supply their own power must suddenly be taxed to support those too poor to get their own off the grid abilities is as backwards as an idea can get.

  34. BING! BING! BINGO! by Kagato · · Score: 1

    I think the real issue is why didn't the datacenter come up to capacity. To me the answer is BING. That is to say the reports indicate the primary function of the data center was to service the Bing service. Me thinks Microsoft's expectations were a bit high when they signed the contract in the first place.

  35. You're seeing that very inefficiency by tepples · · Score: 1

    Because I don't want a different utility company digging up the road in front of my house every other month.

    An efficient price for utility construction permits would take into account this inconvenience. But because the city owns all the roads, there's no way to find the most efficient price.

  36. Turbo button. was Re:How? by 140Mandak262Jamuna · · Score: 2

    What'd they do, shift all the load to AMD servers?

    Don't be silly. Every one of the towers come with a huge button named in bright letters TURBO. They pushed that button in every machine.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:Turbo button. was Re:How? by MobileTatsu-NJG · · Score: 1

      Wow... that's a reference to a PC configuration we haven't seen in so long that nerds use it in "Yo Mama's so old" jokes.

      --

      "I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)

  37. Typical Slashdot title by bi$hop · · Score: 5, Interesting

    I have a love/hate relationship with Slashdot. One thing is for sure: I'm tired of all the *nix fan boys who find every possible way to smear Microsoft. Here are a few alternative titles, just to irk the haters:

    "Microsoft wisely saves $140,000 by simply using electricity."

    "Microsoft deliberately uses electricity to avoid ridiculous fine."

    "Microsoft forces utility board to reduce ludicrous fine by $10,000."

    "Microsoft exposes power company's pollution-inducing practices."

    1. Re:Typical Slashdot title by Rich0 · · Score: 1

      "Microsoft forces utility board to reduce ludicrous fine by $10,000."

      That might have been a great Slashdot headline since it is wrong. The fine was reduced by $150k. The fine was originally $210k, MS could have avoided it by spending $70k, and in the end the fine was reduced to $60k.

      The "ludicrous" bit was spot-on though.

  38. An even more economical way to store electricity by Taco+Cowboy · · Score: 5, Interesting

    Pumped storage plant has been used since the 1960's, but it does require a dam.

    On places where there is no dam, this method can not be deployed.

    However, technological advancement has enabled us another way - by using ultra-capacitors.

    http://energy.gov/sites/prod/files/piprod/documents/Session_D_Miller_rev.pdf

    Advancement on capacitor technology resulted in capacitors that can store HUGE amount of electricity for a LONG time, with miniscule loss.

    And many are being deployed in power grids - not only as a power storage but also acting as a power stabilizer - the ultra-capacitor can "soak up" power spikes and release power during "brown outs".

    --
    Muchas Gracias, Señor Edward Snowden !
  39. NOT A FINE by mschaffer · · Score: 3, Informative

    This is a penalty due to a contractual obligation. It's not a fine.
    It's still wasteful, though.

    1. Re:NOT A FINE by Anonymous Coward · · Score: 0

      What's the difference exactly? They're interchangeable as far as I'm concerned.

    2. Re:NOT A FINE by DarwinSurvivor · · Score: 2

      Fines are issued by government for breaking laws and regulations. Penalties are issued by contractual partners for breaking contractual agreements.

  40. Re:An even more economical way to store electricit by mschaffer · · Score: 1

    So, what if the data center isn't near a suitable reservoir.
    Even if it were, I am sure there would be hundreds, if not thousands, of people complaining that MicroSoft displaced them to put a reservoir there.

  41. Open regulated market by formfeed · · Score: 2

    So the problem would have been avoided, if Microsoft could sell that electricity again. They might have lost some money (or not, since residential rates are much higher) but wouldn't have to waste the whole thing.

    In other countries you get the grid from the local power company but then can pick a provider. Funny enough that works only if there is a strong government organization in charge of "deregulating" the network monopoly. Kind of what the US tried with phone lines before the baby bells got rid of it again.

    1. Re:Open regulated market by cusco · · Score: 1

      Quincy is in the middle of farmland, there's no one around to sell the power to. All of the surrounding counties have their own power generation plants getting electricity from the Colombia River, they'd have to sell it across the mountains, and there's no way to get it there since the existing power lines across the Cascades are already maxed out.

      --
      "Think about how stupid the average person is. Now, realise that half of them are dumber than that." - George Carlin
    2. Re:Open regulated market by TemporalBeing · · Score: 1

      So the problem would have been avoided, if Microsoft could sell that electricity again. They might have lost some money (or not, since residential rates are much higher) but wouldn't have to waste the whole thing.

      In other countries you get the grid from the local power company but then can pick a provider. Funny enough that works only if there is a strong government organization in charge of "deregulating" the network monopoly. Kind of what the US tried with phone lines before the baby bells got rid of it again.

      May be that's why Google got a license to buy/sell energy (See Google Energy)?

      --
      Truth is like the sun. You can shut it out for a time, but it ain't goin' away. - Elvis Presley (source: imdb.com)
  42. Re:An even more economical way to store electricit by Benaiah · · Score: 3, Informative

    I don't think that there are many ultra capacitors adding storage capacity to grids. Its definitely on the table for the future however at the moment the capacitor banks that you see at your transmission yards are actually for power factor correction not power storage.

  43. Only in North America, by Anonymous Coward · · Score: 0

    birthplace of the 'retarded'...

  44. They are wasting hydroelectric power by kriston · · Score: 1

    They are wasting hydroelectric power, which is not polluting.
    The article mentions diesel generator pollution as a sort of fluff item, but the power that Microsoft is wasting is generated by hydroelectricity, and, therefore, is not polluting.

    It is important not only to realize that they are wasting hyroelectricity, which is non-polluting, but more important to realize that Microsoft's much larger data center in The Dalles, Oregon, (along with Google's data center next door), are also powered by hydroelectricity. This should be noted in stark contrast to the mostly coal-fueled Facebook data centers.

    This is a non-story, diesel backup generator pollution nonwithstanding.

    --

    Kriston

    1. Re:They are wasting hydroelectric power by kriston · · Score: 1

      Not surprising is that the New York Times article is now closed for commenting, requiring the gentle reader to submit a formal "letter to the editor" instead. Microsoft has already rebutted.

      --

      Kriston

  45. Re:An even more economical way to store electricit by GrpA · · Score: 4, Insightful

    I take it then you've never heard of compressed-air power storage?

    Same principle as with dams, except very large air tanks are used. Scroll compressors and turbines make it possible the most efficient way of storing excess power as well, and the system is near-zero maintenance, unlike batteries. Demand response is also good and the most useful thing about this system is that it scales down to tiny installations - to the point that it could be used to save power from solar during the day for overnight use.

    GrpA

    --
    Enjoy science fiction? "Turing Evolved" - AI, Mecha, Androids and rail-gun battles. What more could you want?
  46. Re:An even more economical way to store electricit by Taco+Cowboy · · Score: 4, Informative

    There are not more than 8 factories that I know of, that are producing industrial-grade ultra-capacitors, that are to be deployed for the purpose of power-storage / power-stabilizing, near power generating plants and also in the power grid.

    And all the factories are churning out ultra-capacitors as fast as they can.

    But it is not enough.

    That is why it will take some time for more ultra-capacitors to show up in places that need them.

    The bottle-neck is with the manufacturers.

    The main patent for the ultra-capacitors is owned by Sanyo, of Japan.

    They were actually trying to find ways to develop an ultra-capacity rechargeable battery. They came up with the idea of using nano-scale materials (that was back in the late 1990's or so) and successfully produced a re-chargeable NiMH battery that can keep the charge for as long as 36 months, and at 97% capacity.

    That patent was subsequently licensed to other re-chargeable battery manufacturers - including GP and Energizer.

    And later, someone found that the same technique can be also used in enhancing ultra-capacitors, so they licensed it to capacitor manufacturers.

    However, the industrial grade capacitor manufacturers in this planet that we live in happen to behave much like OPEC.

    There are only few manufacturers and they control the market, and they restrict the manufacturing to only a handful factories - so that they can charge an arm and a leg for their products.

    --
    Muchas Gracias, Señor Edward Snowden !
  47. Re:An even more economical way to store electricit by Anonymous Coward · · Score: 0

    There are also experiments with compressed air storage, where you pump a big open cavern up in pressure while you have excess power, and consume it (via wind turbines) when you are short.

  48. Re:An even more economical way to store electricit by ArhcAngel · · Score: 2

    Ultra-capacitors are indeed being deployed to the grid to great success. But the cost estimate of $0.05 kWh/cycle is in addition to the cost of generation. Currently the average cost of generation is $0.05 kWh so any electricity you generate and store now costs you $0.1 kWh. You just DOUBLED the cost of your electricity! It's still the best cost/benefit option for grid storage just not as appealing as having a PPA with a built in cushion. I suspect more widespread adoption will require regulation.

    --
    "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
  49. Utility companies are crazy! by Anonymous Coward · · Score: 0

    Here in Brazil, i was told by a sales rep from one of the biggest telcos that, for them to waive the basic subscription fee, I would have to spend at least 2,000 minutes on local calls every month. I told her I needed a special plan, because I hardly ever make local phone calls, but spend a fair amount in long distance every month. She told me she couldn't do anything, but that I could call some number at the end of my shift and leave the phone hanging there, just to spend those minutes...

  50. Criminals will be Criminals by Anonymous Coward · · Score: 0

    Is anyone really surprised by what these criminals do anymore? They're nothing but low life dirt bags.

  51. The shills are out in force by Anonymous Coward · · Score: 0

    I see the Microsoft shills are out in force today spreading shit, FUD and trying to spin their daddy out of their latest clusterfuck of stupidity.

  52. Re:An even more economical way to store electricit by damium · · Score: 2

    Compressed air has some major losses due to heat. As you compress the air it heats up considerably after it cools the heat energy is lost. Pumped storage can also be deployed on a much larger scale given the right geological layout.

  53. Re:An even more economical way to store electricit by MattskEE · · Score: 2

    What is the $/kWh of industrial supercaps right now? The article you linked above had some projected numbers from startup companies, one of which seems to have gone under and the other of which is still in startup mode. I just helped put together an experimental off-grid PV system with 3kWh lead acid capacity at somewhere from $200-$250/kWh storage cost.

    Is there anywhere a hobbyist or researcher could buy a few kWh of indsutrial supercaps?

  54. I wonder why they used too little electricity... by Anonymous Coward · · Score: 0

    Could it be because few people care about Microsoft's online services a.k.a its 'ecosystem'?

    Or was Microsoft being green and obsessed with saving the planet, lower carbon footprint yada yada...

    I'll let you think about that.

  55. Re:An even more economical way to store electricit by dbIII · · Score: 3, Interesting

    It's an electricity distribution problem and should never be a data centre problem. A small pump storage system near me can sustain 500MW for a while when you pull the plug and let the water out. Most are much larger. I know Microsoft have very large data centres but I cannot see them needing anywhere near 500MW for one of them.
    We're only discussing this due to an enormous fuckup that should never happen - the sort of thing more braindead than any example of a government stuffup used to push the myth that private enterprise is always better at making use of resources.

  56. Comment removed by account_deleted · · Score: 1

    Comment removed based on user account deletion

  57. Re:An even more economical way to store electricit by TheLink · · Score: 2

    A workaround is to add a bit of water (mist) to absorb that heat- reducing the temperature increase and thus the energy loss.

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  58. Re:An even more economical way to store electricit by Woek · · Score: 1

    Interesting presentation. The graphs could use some legends, but the message is sorta clear...

  59. Christmas in July by Anonymous Coward · · Score: 0

    Microsoft data center fined for not consuming enough electricity, you say?

    Christmas seems to come earlier every year, retailers looking to maximize profits have things set up so that as soon as one holiday ends, the paraphernalia from the next replaces it on shelves the day after the previous holiday occurs. Halloween shit this year appeared right after the Labor Day holiday sales ended, all the summer stuff that will be salable next year and still produce a profit after accounting for storage costs went to storage, what didn't got shipped off to the clearance aisle, or the dollar stores, etc. and the cycle continues. Thanksgiving stuff will be on shelves November 1st, and Christmas stuff will flood onto the shelves like clockwork on December 1st, joining all the Christmas stuff that has already been on shelves since late July.

    That observation made, I still think it's a little early for the April 1st jokes... can't we at least wait until January?

  60. No kidding by Sycraft-fu · · Score: 1

    I have no problem with the utility company saying "You have agreed to purchase X kWh of power for $Y. You owe us $Y and for that amount you may use any amount of power up to and including X. If you go over, you pay more, if you are under, you do not get a refund." No problem, and it sounds like MS was ok with a situation like that too.

    However they wanted to charge MS MORE money for using LESS power. That is completely retarded. There is no way it costs the utility company more money to produce less power, it is just a money grab on their part. MS thus made the sensible choice from their standpoint and simply wasted power.

    This is just greed from the utility company, trying to fine someone for more than the cost. Were they not stupid they'd take the $70k for power they didn't produce and walk away happy.

  61. That's not the problem by Sycraft-fu · · Score: 2

    The problem is they want MORE for not using it. Doesn't sound like MS had any problem with paying the $70k. They agreed to buy power at a bulk rate and that rate stands, use it or not. The problem they had is the utility company wanted to charge them more for not using power than for using it. The opted to simply use it.

    Think of it like this: Suppose I make a deal with you where you get two tanks of gas per month, for a year, at a fixed price. You do it to get a better price, I do it to get a revenue stream up front. If you go over, you have to pay more, but you don't get a refund for going under. So you go on vacation one month, and don't use your fillups. I then send you a fine for twice the cost of the tank of gas. I say you have to pay more because you neglected to fill up.

    See how stupid that would be?

    If the utility company was saying to MS "You used less power than you thought you would, but you still have to pay us for the bulk contract," and MS was refusing, I'd be supporting the utility company. You agree to the bulk deal, you pay for the bulk deal, use it or not. However they are saying "You used less power than you thought, so we want you to pay the bulk rate, and then pay an additional 200% for the power you didn't use." Hence the utility company is stupid.

    1. Re:That's not the problem by cdrguru · · Score: 2

      What you are missing is that you cannot generate electricity and not have it used. It doesn't bleed off into space. You have to shut generating plants down if the electricity being generated is not being used. Today it is quite well known when electricity is needed and when it is not - except for commercial customers.

      What Microsoft did was contract for X amount of electricity and then didn't use it. The generating company had to rearrange a lot of stuff and shut down generators and start them back up again because of this. Likely this involved additional staff costs as well as wear and tear on the equipment. Even hydroelectric generation does not trivally go on and off line.

      So these additional costs are being passed onto the customer as per the contract. Sounds perfectly reasonable to me.

    2. Re:That's not the problem by Rich0 · · Score: 1

      I can't really see how it costs the utility more to NOT deliver power. I can see how they have fixed costs that are the same either way.

      Plus, if they cared about not ramping up and down generators then the contract wouldn't just be for a total quantity used, but would also stipulate some kind of continuous draw. I can't see how they got out of ramping up and down generators if MS just burned through an extra $70k of power in a day. Every day before then they weren't using quite as much, and then on the last day instead of using the same amount as every day prior they pulled out the stops and put a huge load on the grid. That means peaker plants and the works all kicking off. How does it cost MORE if they don't just keep doing what they did every day prior?

  62. hmm by Anonymous Coward · · Score: 0

    My electric-arc furnace is ready to go! No need wasting all that power, I'm going to turn some scrap into steel with it instead and sell it on the open market!

  63. Something doesn't make sense here by volpe · · Score: 1

    The penalty for under-consumption should never be more than the cost of the electricity that one would have to consume to avoid the penalty. There's no point in motivating them to *waste* electricity.

  64. Re:An even more economical way to store electricit by Anonymous Coward · · Score: 2, Informative

    On places where there is no dam, this method can not be deployed

    Oh sigh.On places where there is no dam AND nobody understands how to transport electricity, this method can be deployed.
    The netherlands USES this methods and the dams are in Norway. That is quite a distance, look it up on Apple Maps!

  65. Re:An even more economical way to store electricit by Anonymous Coward · · Score: 0

    Pumped storage can also be deployed on a much larger scale given the right geological layout.

    You mean, like creating artificial (or reversing an existing) Artesian Well and later using it to turn the turbine?

    I had the same idea a while ago. But then It occurred to me that it could be generalized:

    You probably don't even need that much water. The power of the water behind the dam is proportional to product of hydrostatic pressure at the level where turbines are located and the flow of the water. If there was something much heavier then water pressing down on it, a relatively little water would simulate a deep, deep accumulation lake and allow storage of greater amount of energy. So, just make a big variable volume tank and build a huge concrete weight (or steel springs) opposing the expansion of the tank, and Voila! - a pumped storage wherever you need one.

  66. Contractual penalty, not a fine by DL117 · · Score: 1

    MS agreed to purchase X amount of electricity and pay a penalty if they don't. It's no different than an ETF on a cell contract, or any other ordinary contractual agreement.

    Nothing to see here, except MS negotiated badly.

  67. Re:An even more economical way to store electricit by ewanm89 · · Score: 1

    No, it doesn't require a dam, it requires 2 bodies of water with lots of water one elevated as far above another as possible. So a mountain with a lake at the top and one at the bottom. And they can be man made pools at one or both ends. Ultra-capacitors are strictly short term hours/days, pumped storage is a lot longer being as long as you have that pool of water up there and it hasn't evaporated much.

  68. Re:An even more economical way to store electricit by Hank+the+Lion · · Score: 2

    This is no workaround.
    When you absorb the heat in water it is still lost. The only effect is that the temperature will be lower.

  69. Re:An even more economical way to store electricit by dj245 · · Score: 2

    Power companies love pumped storage because it is one of the few types of power stations which is basically instant-on. They can charge it out on the market at ridiculous prices.

    The bad part is, every site that is suitable for pumped storage either already has it, or can't get it because of the environmental permitting. All the best "natural" sites have it already. Sure, you can take the top off a mountain and build a man-made lake where the top of the mountain used to be, but people really frown on that. The quantities of water needed to make any sort of difference is staggering. It has to be a big reservoir.

    --
    Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
  70. It's a Brave New World. by Anonymous Coward · · Score: 0

    In my home state, the politicians and their puppeteers are pushing hard for "decoupling".

    Decoupling means there's no connection between the power you use and the bill you receive. You pay the bill, period, no options, and the bill is whatever the power company says it is.

    Common citizens like myself don't call this "decoupling" we call it "state approved extortion" or "regulatory capture". The majority of citizens hate the idea, but that will probably not hinder its passage into law, since the minority that favors it has very deep pockets.

    The power company flacks and their wholly owned politicians explain that the power company has no incentive to reward energy conservation; selling more power makes more money when there's a Public Utilities Commission regulating pricing (which they are also trying to abolish, of course, since it's a crime against Saint Ayn Rand and her holy prophet Reagan to regulate state-sponsored physical monopolies like power distributors). They say that if they had decoupling, they would no longer punish companies like Microsoft for conserving energy, because they'd be charging us the same bill no matter what.

    Obviously, in real life, under decoupling they'd charge Microsoft based on whether Microsoft was advancing their political goals or not; anyone who helped them dismantle anti-pollution laws and worker safety laws etc. would get a lower bill. But I'm sure they'd have some twisted, otherwordly rationale for this, just like they have for decoupling.

    Somehow, this weird blend of tyranny, oligarchy and plutocracy gets labeled considered "laissez faire capitalism" by True Believers in the Libertarian/Neo-Conservative Axis.

  71. Better use by fran6gagne · · Score: 1

    They could have use that electricity for something useful, like giving free electricity to the neighbourhood.

  72. Re:An even more economical way to store electricit by bluefoxlucid · · Score: 1

    Ultra-capacitors are 10 times bigger than lead-acid for the same storage; 30 times bigger than Li+. It takes 15000 farads to match a 2700mAh 1.5V AA battery's storage capacity; the capacitor charges and discharges faster and can do so millions of times instead of thousands. A large supercapacitor could push 5000F at 2.7V, so three car battery sized things to match a AA battery.

  73. Re:An even more economical way to store electricit by TheLink · · Score: 2

    The temperature is much lower and so less heat energy is lost during the storage. The rate of cooling is much lower.

    And a fair amount of the heat in the water can allegedly be reused:
    http://www.forbes.com/sites/ericagies/2012/01/25/greening-the-grid-lightsail-aims-to-make-power-cleaner-by-making-energy-storage-cheap-and-plentiful/

    http://www.wired.com/wiredenterprise/2012/07/danielle-fong/

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  74. Donate the power by Anonymous Coward · · Score: 0

    Hey MS, do some good to the world! (somebody at MS is having a fit right about now). Donate the electricity to others, thus keeping to your purchase agreement, and being green at the same time. Who knows, people may actually start to like you too (somebody else, at a geek site, is having a fit right about now).

  75. Re:An even more economical way to store electricit by MattskEE · · Score: 1

    Taco Cowboy's link a few posts above addresses this and acknowledges the decreased energy density but made claims that large-scale supercaps would provide better economy in terms of $/(kWh*(number of cycles)). But of course $/kWh is also important because if they are highly capital intensive then they won't necessarily be attractive.

  76. Re:An even more economical way to store electricit by bluefoxlucid · · Score: 1

    My point is they're not a battery replacement. Now, as far as capacitors go, they're really high-density capacitors. If your usage is erratic over the scale of, say, 5% of your storage--which is probably deep cycle lead-acid--you can have a big bank of supercaps that smooths that out. This prevents cycling on the batteries, which wears them out QUICKLY, whereas supercaps don't give a shit (very few thousands of cycles versus millions or tens of millions of cycles). On the down side,as supercaps supply 10% of the storage of lead acid, you need a supercap bank HALF THE PHYSICAL SIZE of your lead-acid bank. Using expensive Li+? Your supercap bank will be huge compared to your Li+ bank.

    Supercaps are basically a flawed design. They don't actually use a dielectric; two conductors are placed together, but the voltage is so low it doesn't jump across the nanoscale gap between them. That means a high voltage bank theoretically needs a bunch in series; in practice, they're damn high output, so really just use a DC-DC converter.

  77. Re:An even more economical way to store electricit by Hank+the+Lion · · Score: 1

    Ah, the second link made things clear.
    If you just compress air without adding water, it heats up.
    This heat is lost over time, lowering efficiency.
    When you spray in water, you take this heat loss up front, that is: if you don't re-use the heat in the water.
    The brilliant thing LightSail Energy is doing is that they re-use the heat in the water on expansion.
    And because the heat capacity of water is much higher than that of air, relatively little water is needed.

    If you would just release the heat in the water to the environment (which I thought was what happened when you described the cooling step), efficiency would be lower than without the cooling step.

  78. Congrats to MS then by phorm · · Score: 1

    Unfortunately, it seems that while what they did wasn't really reasonable, the alternative was also unreasonable..

    However, beyond that, it appears that their power usage was down because they were running on diesel backup generators a lot of the time, apparently during maintenance etc.
    So maybe the power company needs to clean up its billing (don't fine in excess of power not used), and MS needs to fix things so that maintenance doesn't spend a lot of time running polluting diesel generators.

  79. Re:An even more economical way to store electricit by ArhcAngel · · Score: 1

    I take it you've never been a bean counter at a large energy company?

    And I've been following compressed-air tech for a very long time.

    --
    "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
  80. Re:An even more economical way to store electricit by dbIII · · Score: 1

    I disagree, since I've visited a very small reserviour (as such things go) which can provide that full 500MW for less than two hours. That is enough for a lot of situations and that paticular one can also supply 250MW for around four hours.
    Even with small hydro units like that the turbines are large - I gained access to the penstock that feeds it from the reserviour by climbing in between turbine blades. There may have been several turbines and that may have just been the one at the highest point, I can't remember, it was in 1994 and I only worked in that place once and in one location in that unit.

  81. Re:An even more economical way to store electricit by Rich0 · · Score: 1

    Yeah, but they're WAY more exciting than a AA battery if you short the leads. :)

  82. Re:An even more economical way to store electricit by TheLink · · Score: 1

    In theory to reuse the heat in the water you just have to make sure enough air passes the water (or something heated by the water) somehow - then the cooling of the air due to expansion will be reduced, and so the pressure will be higher than it would be otherwise.

    I think LightSail uses the spray method to do that.

    But it might not be necessary - you could have heat sinks in the storage chamber and water in the heat sinks to absorb the heat. This would be more expensive in terms of parts and material, but there would be no moving parts and no water in the air. But it might be harder to achieve a good enough heat transfer with the heatsink and fins method, compared to a spray of warmish water.

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