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RPS: RIP RPS: RIP July 13, 2015 8:00 AM | Tagged as Renewable Portfolio Standards, RPS

WSJ July 11, 2015, Page A9: States Are Unplugging Their Renewable-Energy Mandates” by Donald Bryson and Jeff Glendening

Excuse The Biz Bucks Guy’s wishful hyperbole. Renewable Portfolio Standards (RSPs) are not completely dead yet. So “Rest In Peace” is a bit premature. But for some states, they are moving to hospice care.  

An RPS forces electric utilities to revise their previously economically based generation mix to meet a politically motivated and arbitrarily constructed one. A few key states are discovering their RPS position is increasing costs to consumers dramatically. North Carolina, Kansas, Ohio and West Virginia have moved to eliminate or severally curtail their state’s RPS implementation. They just can afford it. Twenty-five other states have yet to walk up.  Parts of Europe are doing the same.

Power prices in states with RPSs are much higher than neighboring states without RPSs. The Energy Information Administration reports that electricity is 24% higher where RPS mandates are in effect. Solar and wind power are just plain expensive. Higher energy prices are harmful. Bryson and Glendening report North Carolina citizens alone lose over $14 billion in real personal income annually from higher electricity prices.  RPSs are also correlated with an increase of 10% unemployment. That’s 24,000 jobs for North Carolina alone.

Isn’t it time we put our scare resources into energy R&D, and avoid installing the energy equivalent of the Model T?

[Although opinion is included, The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]

Posted By The Biz Bucks Guy
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