(Yet another) reason why Ohio should CANCEL the Renewable Mandates

We hope that Governor Kasich reads this analysis by an economics professor because he has recommended Mr. Petricoff to the PUCO.  It is, yet another, example of renewable mandates INCreasing the costs of electricity for consumers. This anaylsis goes even farther, though, and it supports our view that increased electricity costs damage economies by affecting the poor, industry and reducing the labor force. Ohio does not need or want BigWind energy!! Do our legislators live in an alternate universe that does not see these realities????? Please ensure that they know the truth. Make a call, send a letter, help to inform them!!….

According to my new study published by the Rio Grande Foundation, New Mexico’s 15.7 percent RPS will increase state electricity prices by nearly 7 percent in 2020. Already, residential electricity prices are 29 percent higher in states with mandatory RPS than in states without them, according to data from the Energy Information Administration.

It’s not surprising then, that many states are facing blowback relating to their RPS’s.

At the end of May, Maryland Gov. Larry Hogan vetoed a bill to raise his state’s RPS from 20 percent to 25 percent, noting he couldn’t support the soaring costs.

Last year, West Virginia and Kansas completely repealed their RPS’s. And the year before that, Ohio hit the pause button on its RPS.

In numerous statehouses, legislation has been proposed to either cut RPS’s or scrap the mandates completely.

With the soaring electricity prices associated with RPS, this shouldn’t come as a surprise. According to the Brookings Institute, wind power is twice as expensive as conventional power, and solar power is three times as expensive.

These higher energy costs are passed on to electrical ratepayers, depressing economic output and disproportionately hurting the poor, who spend a larger fraction of their incomes on electricity….

The economic costs associated with RPS go beyond heftier electricity bills for ratepayers.

Since energy is an essential factor of production and consumption activities, businesses pass along higher rates in the form of higher prices for customers.

As a result, net economic output in states with RPS’s is reduced – often by billions of dollars.

Our study concludes that New Mexico’s 15.7 percent RPS will reduce its economic output by $444 million in 2020. In neighboring Utah, the state’s 20 percent RPS leads to a $1.4 billion reduction in economic output in the same year.

Finally, we know that less economic output means fewer jobs. We anticipate RPS to cost thousands of jobs per state, varying based on each state’s unique labor market. For New Mexico, we estimate that RPS will cost our state nearly 3,500 jobs in 2020.

While the RPS does create some jobs in building and maintaining solar, wind and other renewable capacity, these job gains are dwarfed by the job losses caused by reduced economic output….

Source: Mandating renewable energy raises costs, cuts jobs

Advertisements