May 16, 2012

Hidden Carbon Tax

seven such states with RPS mandates saw their rates soar by an average of 54.2 percent between 2001 and 2010, 
more than twice the average increase experienced by seven other coal-dependent states without mandates

Robert Bryce's Manhattan Institute article "The High Cost of Renewable-Electricity Mandates" is a good read.  More than half the states have seen their cost of electricity increase (skyrocket, in fact) as they pass laws forcing their power companies to provide higher and higher percentages of power from renewable sources.  At the same time, many states are providing tax breaks to renewable energy companies and renewable energy efforts by normal companies, so the taxpayers have to 1) pay more for energy and 2) make up tax shortfalls from companies that avoid millions in taxes through renewable energy loopholes and subsidies.

In 2011, California passed a mandate that 33% of their energy would come from renewable sources by 2020... they did no cost benefit analysis.  As these mandates continue to be passed, even during this long recession, more and more of the poor are tapping state and federal programs to help them pay their power bills, so not only do power companies pass all these costs on to customers, get greater and greater profits from renewable energy subsidies, but the less than half of America who pay taxes, have to pay more.

Additionally, as the EPA forces older coal plants out of business, many of the Midwest states without mandates, like Indiana, Kentucky, Tennessee, Michigan, etc, will be seeing their rates pushed up as the costs are passed along; not to mention that the end-users are also being forced to pay for smart meters being added to their homes to the tune of several dollars every month for years.

All in all it is just a state and national energy policy mess costing the taxpayers increasingly billions of dollars.

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