Cost of Renewable Energy: Electric Rates Up Double-Digit Percent Across the West

Update

Economic Impact of Minnesota's Renewable Energy Mandate, April 11, 2011, White Paper, a PDF file

Original Post

Some numbers rounded. Link here. 

• Wyoming: Rocky Mountain Power seeks an average boost of 17 percent.
• Oregon: rates climbed 9% in January. The utility requested 13 percent. Wait another year.
• Utah: the utility has requested an overall average 14 percent rate increase
• Idaho: requested 14% in December; given 6 percent. Wait another year.
• Washington State: requested a whopping 21 percent but got 12 percent. Yup, wait until next year.
• Colorado: the state must have missed the memo -- renewable energy is going to push utility rates through the roof; Colorado mandates that utilities supplying electricity to Colorado must get 30% of their energy through renewable energy (euphemism for "wind");

Wyoming rate increases can be attributed to the state's fast rate of growth.

But that argument doesn't hold elsewhere.

And arguments that energy has gotten more expensive is really hard to swallow. Coal remains plentiful and relatively cheap, and natural gas has been in the pricing doldrums for years.

What do these states and the rate increases have in common?

Renewable energy. I figured that out as soon as I saw the headline. It wasn't until the 12th paragraph that the writer finally gets around to this:

Oregon has adopted requirements mandating 25 percent of its power will come from renewable sources by 2025, and some of those costs are just hitting home, regulators told the public after making the decision.

Minnesota has mandated that 25 percent of its power must come from renewable sources by2025, and specifically Xcel Energy is required to produce 30 percent of its power from renewable sources by 2030.

Xcel just reported that it is canceling a 150-MW wind farm project in southeastern North Dakota. I think folks can connect the dots.

By the way, this should be required reading for those who question my comment that Xcel did the cost analysis and came to the conclusion that wind power was not economically viable under current conditions. The author comes to this conclusion on the reliability of wind power:

The only words I can think of that fairly describe the variability of wind power in the BPA region are shocking, obscene, alarming and random.

The BPA (Bonneville Power Administration) operates in the Pacific Northwest, a region noted for its strong support for wind energy and a region noted for excellent wind energy opportunities.

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Another reason your electric rates are going up:

• Cost of utilities to discuss issues with environmentalists; those discussions are generally court-related where lawyers with billable hours at $150/hr (or more) are the real winners