States that support ‘green’ energy tend to have higher electric bills

Andrew Follett of the Daily Caller explores the relationship between electric bills and government support for “green” energy mandates.

States which offered substantial taxpayer support for green energy pay a lot more for electricity, according to a Daily Caller News Foundation analysis.

The most notable examples of this trend were California and West Virginia. California had some of the nation’s highest power prices, paying 14.3 cents per kilowatt-hour, and had a whopping 183 policies offering support to green energy. In contrast, West Virginia had some of the nation’s cheapest power at 7.91 cents per kilowatt-hour and a mere 11 policies.

Statistical analysis run by TheDCNF found a positive and statistically significant correlation existed between high electricity bills and states with numerous policies supporting green energy. States which offered rebates, buy-back programs, tax exemptions and direct cash subsidies to green energy were 64 percent more likely to have higher than average electric bills. For every additional pro-green energy policy in a state, the average price of electricity rose by about .01 cents per kilowatt-hour. …

… Most analysts agree rising residential electricity prices are also harmful to American households. Pricey power disproportionately hurts poorer families and other lower-income groups as the poor tend to spend a higher proportion of their incomes on “basic needs” like power, so any increase in prices hits them the hardest.

As essential goods like electricity becomes more expensive, the cost of producing goods and services that use electricity increases, effectively raising the price of almost everything. The higher prices are ultimately paid for by consumers, not industries.

Mitch Kokai / Senior Political Analyst

Mitch Kokai is senior political analyst for the John Locke Foundation. He joined JLF in December 2005 as director of communications. That followed more than four years as chie...