Renewable energy
a costly endeavor
I read with interest the letter about the rate increases some area customers are seeing. That rate increase will likely be the first of many to come. Consumers will be handed the bill for complying with the renewable energy standard the DFL pushed through the Legislature last year.
Minnesota's opposition to renewable power mandates in the past was the hefty price the state's citizens would have to pay for purchasing renewable energy. That has not changed. With the shift of make-up at the
Legislature, anti-fossil fuel activists argued without much evidence the costs of producing renewable energy are declining.
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Even if you could account for declines, the costs remain significantly higher than those associated with generating energy from traditional sources.
In a study that was done in Colorado, Xcel Energy reported that the renewable power mandate proposed in 2006 would cost consumers $580 million to $1.6 billion dollars per year in increased energy costs - just in
Colorado.
Arizona power supplier APS allows its customers to choose the source of the power they purchase. Arizona citizens have elected to purchase 99.9 percent of their power from conventional sources since the program began.
Similarly, power suppliers in New York and Massachusetts give their customers the option of purchasing renewable power. In Massachusetts, only 1.5 percent of eligible consumers have opted to pay the higher prices for renewable energy since it has been made available.
In New York, an even smaller 0.6 percent of residents have agreed to pay the higher costs.
In the free market, the laws of supply and demand serve to weed out the products and services that don't work well or that people don't want; in a government-controlled economy, politicians and bureaucrats pick a winner that everyone must deal with, to the detriment of customers and competitors alike.
When it becomes economical and prudent for people to switch to renewable energy, they will. But in Minnesota we will pay for the costs as an indirect tax in higher costs or surcharges and you can thank the Legislature for taking more money out of your pocket.
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David Anderson
Lonsdale
