“The PTC offsets the high price of wind energy, giving the false impression that wind is competitive with other resources. But with capacity factors under 30%, project operation costs likely exceed the average wholesale price of energy in most areas of the U.S. Wind only appears to be a ‘cheaper competitor’ because it’s subsidized to a point where economics have no meaning in the wholesale market.”

We learned this week that the Senate Finance Committee plans to mark-up a new tax extender bill. This news comes just seven months after Congress enacted the controversial $42 billion tax credit (HR 5771) giveaway. Apparently, the promise of long-term broad base tax reform has again been pushed aside in favor of short-term relief for select taxpayers.

Over the coming months, a tidal wave of lobbyists will descend on Capitol Hill with countless reasons for why their industry deserves special consideration.…

Yesterday, the Institute for Energy Research (IER) asked all 50 state public utility commissions to prioritize the interests of electricity ratepayers above the Obama Administration’s controversial Power Plant Rule. Already, the governors of several major states–Texas, Oklahoma, Louisiana, Indiana, and Wisconsin–have said NO to Obama’s EPA. Kentucky might become the sixth state on this list.

Will state public-utility regulators, charged to protect consumers from unnecessary costs, seize the day and stand up? Doing so would not only help consumers but also push back against the growth of the Bootleggers-and-Baptists dynamic in electricity policy. A let-the-market-decide policy, not a let-the-feds-decide policy, is the best way to allocate electricity generation resources at the state level.

The letter, signed by IER president Tom Pyle, follows:

Dear Chairman, 

Recently, we witnessed a historic ruling by the Supreme Court in Michigan v.

“From a fuel-efficiency point, trucks deliver over 140 times the cargo as a car, but they do that while only burning about 3.5 times the amount of fuel. That would appear to be a notable achievement.”

“The trucking industry is already harnessed with the increased operating costs from new highway safety rules reducing the number of hours drivers can work each day and in a week. Increased capital investment costs will further squeeze trucking company profitability…. [P]repare for higher costs of all those products you purchase.”

The Obama administration’s Environmental Protection Administration (EPA) has proposed regulations to reduce greenhouse gas emissions from heavy-duty trucks, requiring that their fuel economy increase up to 40 percent by 2027 compared to baseline 2010 actuals.  This is the next step in heavy-duty vehicle fuel economy efforts begun in 2011.…

“Forced use of higher-cost U.S.-flag vessels has benefitted domestic water carrier firms, shipbuilding companies, and associated labor. This advantage, however, has been diluted because inflated shipping costs has reduced the attractiveness of barge and tanker transport compared to other alternatives.”

The current debate over legalization of oil exports is intertwined with cabotage (water vessel) protectionism. The previous two posts (Part I; Part II) examined the history of oil-export regulation by the federal government; this post surveys water-vessel restrictions from Washington, D.C., that directly or indirectly impact the oil trade.

In 1808 and 1817, the United States passed legislation reserving coastwise and intercoastal trade to U.S.-built and registered vessels. [1] Section 27 of the Merchant Marine Act of 1920, commonly known as the Jones Act, reaffirmed this policy and extended it to the noncontiguous U.S.…