We mentioned P&G, yesterday, in our blog. Today, we present a thorough examination of the false claim that industrial wind energy will power P&G. As many Americans are P&G customers, is it time to contact their company and share some frustration with their claim?!?….
Earlier this week Procter & Gamble made the startling claim that it would “meet its electricity demands by using 100 percent wind power.” This claim is false for two important reasons. First, the wind does not blow all the time and cannot be counted on to power Procter & Gamble’s plants. Second, Procter & Gamble is buying electricity from a wind facility in Texas that is on a completely different interconnection than Procter & Gamble’s plants. This means that the electricity almost certainly will not reach Procter & Gamble’s plants.
Why are we fact-checking Procter & Gamble? Because this wind facility will likely impose millions of dollars per year in hidden costs on both taxpayers and electricity ratepayers. It is unfair for Procter & Gamble to take advantage of U.S. taxpayers and electricity ratepayers to wage a public relations campaign….
Wind power increases costs for everyday Americans in two important ways. First, wind production in the U.S. is supported by federal programs that cost American taxpayers billions of dollars each year. A recent IER analysis estimated the one-year cost of federal wind subsidies to be nearly $3 billion in 2012. For each megawatt-hour of wind energy produced, taxpayers give $23 to wind producers through the federal wind production tax credit. Subsidies to the wind energy industry have only grown since then as more wind facilities have come online.
Second, the intermittency of wind power imposes costs on the reliable power plants on the grid. Because wind is unreliable, particularly in times of high demand, reliable plants have to stay online to produce power when it is needed most. But with more and more off-and-on production from wind facilities, those reliable plants run less and less, which significantly raises the “levelized cost” of those plants. Earlier this year, we calculated those costs to be between $15 and $30 per megawatt-hour. Hence, the hidden costs of wind power—tax subsidies and imposed costs combined—are as high as the average wholesale price of electricity in 2014.
Procter & Gamble is purchasing 370,000 megawatt-hours of electricity per year from the wind facility owned by EDF Renewable Energy. For that amount of production, taxpayers’ tab via subsidy payments will be $8.5 million per year through the wind Production Tax Credit. Ratepayers will also shoulder higher electricity bills due to wind’s unreliability imposing an additional $5.5 million to $11.1 million in costs per year to the grid. In short, wind is a raw deal for American taxpayers and electricity consumers. Procter & Gamble should not brag about saddling American families with nearly $20 million in hidden costs every year….