Renewable Portfolio Standards (RPS) are a focus of our Stand UP for Smaller Government petitions, and have been a topic of discussion at our booth at the Kansas State Fair this week in Hutchinson.
During the 2013 legislative session, lawmakers had before them a bill which would lower the renewable portfolio standard in Kansas. This mandate, passed in 2009, requires that 20% of energy produce in Kansas by 2020 come from renewable energy sources. While not a full repeal of these costly mandates, the bill was certainly a step in the right direction. After debate in the House, it was sent back to committee.
Green energy mandates replace the free-market with bureaucratic government oversight; driving up costs for hard-working Kansas families.
And the numbers are real.
A recent study by the Kansas Policy Institute found that the green energy mandate in Kansas will cost the average household $660 a year.
The July report The Economic Impact of the Kansas Renewable Portfolio Standard concludes that Kansas electricity ratepayers will pay higher rates and face fewer employment opportunities. The report states:
“In 2020 renewable energy mandates will cost families an average of $660 per year; commercial businesses will spend an extra $3,915 per year; and industrial businesses will spend an extra $25,516 per year. Between 2012 and 2020, the average residential consumer can expect to pay $2,471 more for electricity. A commercial ratepayer would pay $14,663 more during the period, and the typical industrial user would pay $95,560 more.”
There is nothing wrong with investing in newer energy technologies like windmills. In fact, such investment when done by private individuals and companies spur the free enterprise system that drives prosperity. However when such “investment” is made by governments in the form of massive subsidies, it unfairly takes money out of the wallets of private citizens and companies to wage as a bet that some company will be profitable.
Kansas energy companies should stand on their own two feet without help from government.
To learn more about RPS, check out this Need to Know policy paper by our sister organization, AFP Foundation.
The Stand UP for Smaller Government petition on RPS:
Kansans agree that the environment is an important consideration, but focusing renewable energy sources drives up energy costs, putting added stress on family budgets. Rather than listening to powerful environmental interests, I ask you to listen to the interest of those footing the bill on these renewable portfolio standards— the Kansas taxpayer. Please put a stop to renewable portfolio standards in Kansas.