Executive Summary
The words “Renewable Portfolio Standard” (RPS) should strike
fear into the hearts of all Americans.
Unfortunately, most Americans don’t understand the concept of RPS, much
less its dire consequences. To date, 29
states have passed RPS legislation which requires utilities to, over time, increase
the amount of renewable energy delivered to its customers. On the surface this sounds like a laudable
goal. Unfortunately, there are two major
problems with RPS legislation.
·
Utilities are forced to purchase uncompetitive electricity
generated from renewable sources (These much higher costs, sometimes 2 to 3
times higher than electricity generated from fossil fuel, are passed along to
the consumer or electricity).
·
Taxpayers foot the bill for direct subsidies,
grants, loan guarantees etc. while rate payers are saddled with higher energy
costs for the life of the renewable energy power contract (usually 20-25
years).
