States’ bad returns from renewable portfolio standards, including Illinois’

Now we can add Illinois to that growing list of states to learn that imposing renewable portfolio standards (RPS) on electrical utilities raises prices on ratepayers and harms the state’s economy, costing thousands of jobs and millions of dollars in investment while robbing citizens hundreds of millions of dollars in disposable income.

A newly released study from Beacon Hill estimates that Illiniois’ RPS will have the following effects:

  • Increase electricity prices by 4.77 percent
  • Increase the cost of electricity on consumers by $574 million
  • Increase the average electricity bill of households by $36 per year
  • Increase the average electricity bill of commercial businesses by $365 per year
  • Increase the average electricity bill of industrial businesses by $36,125 per year
  • Lower employment by 8,000 jobs
  • Decrease investment in the state by $134 million
  • Reduce real disposable income by $793 million

Consider Illinois’ results (target year 2026) along with other states’, including North Carolina’s (click the image for the full size):

State RPS studies thru 2014

Jon Sanders / Research Editor and Senior Fellow, Regulatory Studies

Jon Sanders studies regulatory policy, a veritable kudzu of invasive government and unintended consequences. As director of regulatory studies at the John Locke Foundation, Jo...