Tuesday, May 11, 2010

American Clean Energy Act - #1713- What's Worse Than Energy Taxes? Renewable Energy Standards?

On March 15th, appearing with labor and environmental leaders, Los Angeles Mayor Antonio Villaraigosa unveiled a new alternative energy plan that he said would ensure the Los Angeles Department of Water and Power would meet his goal of securing 20% of its energy from renewable sources such as wind and solar by December 31st. At the time, he claimed it would create 16,000 jobs and only raise consumer electric bills between 8.8% and 28.4%. But less than two weeks later those energy rate hike estimates had skyrocketed with the DWP saying it needed to raise rates by 37% in order to meet the renewable energy standards. Los Angeles’ already shrinking business community revolted and by April Mayor Villaraigosa’s plan had been soundly defeated.
Why is this Important?
  1. Sen. Jeff Bingaman is set to introduce essentially the same bill on the senate floor soon.
  2. Higher electric prices for all Americans
  3. Half  of America's energy is generated by coal.
  4. Natural gas and nuclear energy - 20% each.
  5. Rest is renewable - hydroelectric - 6%, wind, solar and biomass - total 3%.
  6. Renewable energy is not cost competitive.
How much will this cost?
  1. Raise electricity rates 36% for the average Household.
  2. Industry - 60%
  3. Cut National income GNP by 5.2 trillion between 2012 and 2035.
  4. Cut National income by $2,400 for a family of 4.
  5. Reduce employment by $1,000,000 jobs.
  6. Add more than $10,000 to a family of 4's share of national debt by 2035.
By way of comparison, the highway use tax on gasoline raises the price of gasoline, but it also generates revenues for building and maintaining roads and bridges. On the other hand, a renewable energy standard raises costs in the form of less efficient production, which provides no economic benefit.”  Read more.......  This is critical to watch, this will further negatively impact our economy, families and businesses.

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