The Democratic takeover of healthcare is only the beginning of things to come. The cash for clunkers basically coerced people to buy certain cars and now Sen. Jeff Bingaman (D-NM) is pushing through to committee his American Clean Energy and Security Act (ACELA). If it proceeds, it could move to the floor soon.
This plan is essentially the same crazy plan they were trying in LA with Mayor Villaraigosa's. His plan would cause energy rate hikes estimated by the Division of Water and Power (DWP) to raise rates by 37% in order to meet the renewable energy standards. The LA business community revolted and the plan had been soundly defeated.
But Senator Bingaman is creating this renewable electricity standard (RES) that mandates sellers of electricity to produce a growing percentage of their power from renewable energy sources every two years. This plan is just like the LA plan and will mean higher electricity prices for all Americans.Currently, about half of America’s electricity is generated from coal, 20 percent from natural gas and nuclear energy, and the rest is provided by renewable sources. Hydroelectric energy gives us about 6 percent and non-hydro renewables like wind, solar energy and biomass total only 3 percent even after decades of existing generous renewable subsidies.
If electricity created by wind and other renewables were cost competitive, consumers would use more of it without a federal law to force consumption. But renewable energy is not cost competitive, hence the need for government coercion to force the American people to buy it.
The number crunching from the Heritage Foundation's Center for Data Analysis found that at an RES would: 1) Raise electricity prices by 36 percent for households and 60 percent for industry; 2) Cut national income (GDP) by $5.2 trillion between 2012 and 2035; 3) Cut national income by $2,400 per year for a family of four; 4) Reduce employment by more than 1,000,000 jobs; and 5) Add more than $10,000 to a family of four’s share of the national debt by 2035.This is not good economic policy; but since when do facts matter to the progressives?