Study: No Relationship Between Renewable Energy Targets And Higher Electric Rates By Climate Guest Blogger on Apr 11, 2012 at 11:34 am
Renewable Energy Standards Deliver Affordable, Clean Power; Right-Wing Attacks Are Misguided 
by Richard W. Caperton
New Jersey, Texas, and California have very different energy profiles. They use different types of energy to power their economy. They have different types of utility systems. And they have different expectations of their energy system.
But these states share one important trait: They’re reaping the benefits of renewable energy. New Jerseyans are first-hand witnesses of how solar power creates new businesses and new jobs. Texans can thank wind power for keeping the lights on during extreme weather that struck the state in early 2011. And Californians are using renewable energy to meet their state’s new greenhouse gas pollution reduction standards.
Twenty-six other states also have renewable energy standards, which require a certain amount of the electricity sold within a state to come from renewable energy. These policies lead to cleaner air, economic development, and a more resilient electrical grid.
Despite these facts, though, renewable energy standards have come under attack. A small but vocal group of right-wing activists and fossil-fuel advocates claim that these policies are raising electricity prices for consumers, which in turn is holding back state economies. As conservative lobbyist Grover Norquist wrote in a recent Politico op-ed:
Renewable energy standards, by design, are intended to drive up energy costs—requiring utilities to use more expensive and often less reliable sources of energy. Not surprisingly, such laws have hit ratepayers hard. States that have a binding [renewable energy standard] now have electricity costs that are 39 percent higher than states that don’t have a binding [standard].
And Robert Bryce of the conservative Manhattan Institute adds:
There is growing evidence that the costs may be too high—that the price tag for purchasing renewable energy, and for building new transmission lines to deliver it, may not only outweigh any environmental benefits but may also be detrimental to the economy, costing jobs rather than adding them.
Fortunately for consumers in the 29 states with renewable energy standards, these critics are wrong. There are no data showing that these standards cause electricity rates to skyrocket.
This issue brief will describe the history of renewable energy standards, explain how electricity rates are determined, and present evidence showing that these standards have not caused electricity prices to rise. This information sets the stage for moving forward in two critical ways: strengthening state-level renewable energy standards so consumers can see even greater benefits from renewable energy, and passing a similar policy at the federal level. |
