Kerpen: Let consumers, not bureaucrats decide our country's energy future
by Phil Kerpen & Steve Lonegan
While President Obama is trying futilely to convince the American people he supports an “all of the above” energy policy, he has remained stubbornly committed to vast subsidies for unproven, expensive technologies like wind.
Obama has repeatedly described his intention to increase wind subsidies “doubling down,” an appropriate use of gambling terminology.
The U.S. Senate will likely be put on record soon on amendment votes to extend wasteful, expensive subsidies for windmills and to create vast new subsidies for natural gas vehicles. These votes will tell us which senators, like the president, want to double down on a losing hand and which think it might be time to try a free market energy policy.
Sadly, it is hardly a given that Republicans will oppose massive taxpayer-funded giveaways to favored energy players. The clearest evidence of that comes from New Jersey, where Governor Chris Christie has led the way on a disastrous proposed offshore wind scheme.
New Jersey’s offshore wind boondoggle was authorized by the Offshore Wind Economic Development Act, signed into law by Gov. Christie in 2010. A cost analysis of the act conducted by the Beacon Hill Institute at Suffolk University concluded that the wind project would cost the state as much as $4.1 billion, drive up electricity rates up as much as 4.2% and cost up to 4,440 jobs. More recently a consulting firm hired by state officials to analyze the bid from Fishermen’s Atlantic, LLC to construct the project found that it would result in the loss of almost 30,000 jobs, and drive up electricity rates by $286 million.
With hefty federal subsidies for wind in place, such boondoggles will continue to spring up around the country. Fortunately, the principal federal subsidy for wind, the so-called Production Tax Credit (PTC) is scheduled to expire at the end of this year. Unfortunately, the Senate will soon vote on extending this giveaway, despite the fact that wind is second only to solar in subsidies and is highly suspect both economically and environmentally.