Spotlights
325 - Renewable Energy At All Costs: Legislation ignores the will of the public and would have unintended consequences

July 09, 2007

Key facts:

• The Senate has passed a major electricity bill that includes something called a renewable energy and energy efficiency portfolio standard (REPS).



• The REPS consists of two separate requirements: A renewable portfolio standard that requires utilities to provide customers 7.5 percent of their electricity from renewable energy sources, such as wind and solar, and energy efficiency measures that require a 5 percent reduction in energy use.



• Despite having higher residential electricity rates than its neighbors, North Carolina would soon require that customers pay extra taxes for electricity in order to subsidize renewable energy and help encourage customers to buy energy efficient products, even if the customers would buy the products themselves.



• North Carolinians have voluntarily chosen not to subsidize renewable energy by paying more for electricity through the NC GreenPower program, so the legislature apparently would force electricity customers to support renewable energy against their will.



• The bill is loaded with “goodies” for special interests, including tax credits. For electricity customers, the cost for the renewable portfolio standard has been estimated to be about $310 million annually. The cost of energy efficiency, like most of the costs, are unclear.



• There could be serious unintended consequences, particularly for mountain and coastal communities. For the 7.5 percent renewable requirement to be met, it likely would require massive industrial wind turbines on the coast and either in the mountains or offshore.



• The REPS is a regressive tax; it would have a disparate impact on the poor.

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