Climate mania impoverishes electricity customers here and abroad
05/12/2012 4 Comments
Several readers have forward the Financial Post article below on how climate mania is impoverishing citizens ad alternative energy schemes are used to drive up the cost of energy. Even though this is a world wide impact, there is also a connection to California. First this from the Financial Post: Lawrence Solomon: Green power failure
The North American exemplar of acting on the perceived threat of global warming is Ontario, which dismantled one of the continent’s finest fleets of coal plants in pursuit of becoming a green leader. Then, to induce developers to build uneconomic renewable energy facilities, the Ontario government paid them as much as 80 times the market rate for power. The result is power prices that rose rapidly (about 50% since 2005) and will continue to do so: Ontarians can expect power prices that are 46% higher over the next five years, according to a 2010 Ontario government estimate, and more than 100% higher according to independent estimates. The rest of Canada may not fare much better — the National Energy Board forecasts power prices 42% higher by 2035, while some estimates have Canadian power prices 50% higher by 2020.
Another reader saw the California connection on the CARB website:
If you go to the CARB web site, http://www.arb.ca.gov/cc/capandtrade/capandtrade.htm, you’ll find this sentence, “California is working closely with British Columbia, Ontario, Quebec and Manitoba through the Western Climate Initiative to develop harmonized cap and trade programs that will deliver cost-effective emission reductions.”
The question is if Canadian Provinces are going to harmonize Cap and Trade programs, that will also result in the harmonization of energy costs. We can also expect our power prices to go up 45 to 50 percent as well. However, the Financial Post article points out that the rest of the US is seeing stable or slight declines in the price of electricity. As energy prices rise in California, they will be declining in the rest of the US as power companies adopt more cheap natural gas. As fracking produces more gas the price continues to drop.
The question one reader asks is:
Will the abundant supply of cheap natural gas overcome the renewable mandates to keep California’s rates from rising or will California’s rate payers see price rises like they did in Ontario?
Given what we know about CARB’s single minded focus on creating a Cap and Trade slush fund and the environmental wacko legislators in Sacramento, who are taking big time political donations from all the “go green” VCs, I have serious doubts that California will ever take full advantage of cheap natural gas and move away form the more expensive alternative energy schemes, there is just too much money involved, and too little political power in the hands of rate payers.