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Location: St. Louis, Missouri, United States

Tuesday, November 15, 2011

Renewable energy: Bubble, scam or both?

Dana Mathewson

Good article from Power Line, that references a very good article in the New York Times (surprise, surprise).

This article pulls no punches when it points out that the electricity resulting from these programs will be more expensive than the "usual stuff" and yet power companies will be obliged by law to purchase it. Cost will, of course, be passed on the the same taxpayers whose money has been confiscated to pay for these programs.

FTA: "The government support — which includes loan guarantees, cash grants and contracts that require electric customers to pay higher rates — largely eliminated the risk to the private investors and almost guaranteed them large profits for years to come. The beneficiaries include financial firms like Goldman Sachs and Morgan Stanley, conglomerates like General Electric, utilities like Exelon and NRG — even Google."

In other words, it's business as usual in Washington.

Oh, digest this thought, from the Times article: "States like California sweetened the pot by offering their own tax breaks and by approving long-term power-purchase contracts that, while promoting clean energy, will also require ratepayers to pay billions of dollars more for electricity for as long as two decades."

California is offering tax breaks -- even though the state is virtually bankrupt. At the same time this boondoggle will hike electricity costs for Pacific Gas and Electric subscribers "for as long as two decades." Somehow I think that those subscribers aren't gonna be too happy when they find out about this -- right, David?

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