“Whether it is the unprecedented subsidies for renewable energy or the unprecedented war on American energy, the Biden administration’s policies are behind the increase in America’s electricity prices.”

During the first three years under Biden vs. last three under Trump, average wholesale electric prices in the seven U.S. independent or regional service areas have increased by 72%. Retail prices are also higher. The average 2024 U.S. residential rate to date is 24% higher than in 2020. For all end users—residential, commercial, industrial, and transportation sectors—prices are up 23%.

This rate surge reflects the massive renewable energy subsidies authorized in the Inflation Reduction Act of 2022, signed by President Biden, that tripled the outlay of such federal largesse. Another factor is the administration’s natural gas policies, which banned imports of Russian oil, liquefied natural gas, and coal; joined with the European Commission to reduce Europe’s dependance on Russian oil; and put a pause on LNG permits.…

“If Americans want to keep their gasoline-powered cars and their large refrigerators … be able to afford travel across their states and country … avoid European—and California—style energy poverty, their only hope is to convince politicians to end subsidies for renewables and all other forms of energy.”

It is common for advocates of renewable energy to complain about the subsidies given to fossil fuels. “We have heard testimony,” stated U.S. Senator Sheldon Whitehouse, “about the threat climate change poses to entire sectors of our economy.”

So, what are we, the federal government, doing to protect against these threats?  Actually, we are subsidizing the danger.  As we’ll hear today, the United States subsidizes the fossil fuel industry with taxpayer dollars.

Joining Sen. Whitehouse in this vein are groups like the International Monetary Fund, The Future is Electric, and the Natural Resources Defense Council.…

“Government increased the cost of Texas electricity by $20 Billion in 2023.”

On July 1, Texas Gov. Greg Abbott and Lt. Gov. Dan Patrick announced that they “will seek to expand the [Texas Energy Fund] to $10 billion to build more new [generation] plants as soon as possible.” The Texas Legislature, with voter approval, created the Fund last year with initial funding of $5 billion.

Subsidizing multi-billion dollar generators and electric utilities using Texans’ money is nothing new in Texas. Figure 1 shows that in 2023 the U.S. government, Texas’ state government, and Texas local governments increased the cost of electricity in the Texas area served by the Electric Reliability Council of Texas (ERCOT) by $19.9 billion, most of it by providing subsidies and benefits to generators and transmission companies. This represented 42.7% of the total cost of electricity to Texans in ERCOT.…

“Texas politicians have added at least $38 billion to the cost of electricity through higher bills or higher taxes since 2019…. Retail rates haven’t reached the level of New York ($0.24 per KWh) or California ($0.32), but Texas’s rising $0.15 rate is disconcerting.”

With its grid overwhelmed by renewable energy, Texas is putting natural gas back in the game. The Public Utility Commission of Texas (PUC) has received 125 notices of intent that propose more than 55,000 megawatts of new generation, most of it gas-fired.

Texans should not be surprised at this turn of events. Generators are simply following the money. Taxpayer money, that is.

Background

After Winter Storm Uri, public pressure forced Texas politicians to wake up to—though not confess—the damage they had caused by throwing billions of taxpayer dollars at generation that only works when the weather permits.…