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The Zombie Campaign for Higher Energy Prices

Posted By Conn Carroll On November 8, 2010 @ 1:00 pm In Energy | Comments Disabled

The American people know that cap and trade energy policies will lead to higher energy costs and fewer jobs [1]. That is why even Democratic candidates like Sen.-elect Joe Manchin (D-WV) famously shot President Barack Obama’s cap and trade bill in a television commercial this fall.
But the progressive campaign to force Americans to pay higher energy costs did not die with cap and trade. The New York Times reports today:

Deals to buy renewable power have been scuttled or slowed in states including Florida, Idaho and Kentucky as well as Virginia. By the end of the third quarter, year-to-date installations of new wind power dropped 72 percent from 2009 levels, according to the American Wind Energy Association, a trade group.

And why are these utilities canceling their renewable energy contracts? The NYT again:

Electricity generated from wind or sun still generally costs more — and sometimes a lot more — than the power squeezed from coal or natural gas. Prices for fossil fuels have dropped in part because the recession has reduced demand. In the case of natural gas, newer drilling techniques have opened the possibility of vast new supplies for years to come.

In April, for example, the state public utilities commission in Rhode Island rejected a power-purchase deal for an offshore wind project that would have cost 24.4 cents a kilowatt-hour. The utility now pays about 9.5 cents a kilowatt hour for electricity from fossil fuels.

So how can the left get Americans to pay higher energy prices for alternative energy? By forcing them to. Specifically, The New York Times [2] cites and Ernst and Young analysis [3] recommending a national renewable energy standard to increase renewable energy investment. From the NYT:

“One of the problems in the United States is that we haven’t been willing to confront the tough questions,” said Paul Gipe, who sits on the steering committee of the Alliance for Renewable Energy, a group advocating energy policy reform.

“We have to ask ourselves, ‘Do we really want renewables?’ ” he said. “And if the answer to that is yes, then we’re going to have to pay for them.”

And how much will Americans have to pay if the left passes a renewable energy standard? A Heritage Foundation analysis [4]: 1) household electricity prices would jump 36%; 2) industry prices would rise by 60%; 3) national income (GDP) would be cut by $5.2 trillion between 2012 and 2035; and most importantly 4) RES would kill more than 1,000,000 jobs.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2010/11/08/the-zombie-campaign-for-higher-energy-prices/

URLs in this post:

[1] cap and trade energy policies will lead to higher energy costs and fewer jobs: http://www.heritage.org/Research/Reports/2009/08/The-Economic-Consequences-of-Waxman-Markey-An-Analysis-of-the-American-Clean-Energy-and-Security-Act-of-2009

[2] The New York Times: http://www.nytimes.com/2010/11/08/science/earth/08fossil.html?_r=1&hp

[3] analysis: http://www.is.gd/gOGkp

[4] analysis: http://www.heritage.org/research/reports/2010/05/a-renewable-electricity-standard-what-it-will-really-cost-americans

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