“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.…
Continue ReadingYesterday, 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:
… Continue ReadingDear Chairman,
Recently, we witnessed a historic ruling by the Supreme Court in Michigan v.
“If fine particulates are killing one out of eight Americans, then any regulation that even slightly lowers particulate emissions is going to be hugely beneficial. And by including these co-benefits, EPA can justify virtually any regulation it wishes.”
Last week, the Environmental Protection Agency hit a roadblock in its quest to enact new standards for mercury emissions from U.S. power plants. In Michigan v. EPA, the Supreme Court held that EPA had improperly refused to consider costs when it decided to regulate the mercury emissions from electric utilities under its Utility MACT (Maximum Achievable Technology Control) rule.
Coming on the heels of several Supreme Court decisions that were disappointing to conservatives, it’s not surprising that the Michigan case has been seized on as a hopeful sign in the ongoing battle between liberty and the regulatory state.…
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