Another Massive Energy Tax Looms on the Horizon

October 12, 2010 04:26

After getting their hopes dashed with cap and trade legislation, many legislators are still determined to impose an energy tax on Americans.

By Daren Bakst at American Thinker


Senator Bingaman (D-NM), along with 32 cosponsors, has introduced legislation that would create a 15 percent renewable energy standard.  The RES is comprised of two distinct requirements.

All of these extra costs incurred by utilities would be passed on to customers in the form of higher electricity prices.  These costs would be buried in electricity bills and therefore would be a hidden energy tax on customers.

A renewable energy standard is a mandate that would force the public to buy energy from high-cost and unreliable sources because the public (through utility companies) wouldn’t buy energy from those sources otherwise.  It would by far be the largest subsidy that could be provided to renewable energy.

The wind doesn’t blow all the time and the sun doesn’t always shine.

They also can’t be used to meet periods of peak demand, when demand for electricity is at its highest.  During those times, grid managers are required to call upon sources of electricity when needed, which can’t be done with wind and solar because the wind doesn’t blow and the sun doesn’t shine on command.

Although this is a point that seems to get lost by those concerned with energy independence, renewable electricity sources also aren’t ways to reduce our dependence on foreign oil.  In 2008, electricity generation accounted for only about 1 percent of all petroleum consumption in the United States.


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