Renewable Incentives Spark Debate at Texas Hearing
At a state Senate committee hearing Thursday, Public Utility Commission of Texas Chairwoman Donna Nelson sharply criticized renewable energy incentives, saying that they are a key contributor to the current strains on the electric grid.
“Federal incentives for renewable energy, I believe, have distorted the competitive wholesale market” on the Texas grid, Nelson told the Senate Natural Resources Committee.
Nelson said she believes those distortions are “one of the primary causes” of the current strains on the grid, and added: “I think we all need to move with extreme caution before adopting any additional incentives or mandates.”
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Comments (4)
ChiefBuffalo
Did Chairwoman Nelson ever explain what she meant by "distortion"? My response to her criticism is that the economic response is to build more wind and solar, if those sources are cheaper, less susceptible to market fluctuation fuel price, more reliable, and less damaging to the environment.
hans5162@ix.netcom.com hans
Of course it's renewable's that are causing the problems with the power grid. Faulty deregulation had nothing to do with it. Private equity firms bought all the filthy coal plants when the price of natural gas was around $13-$14.00 per mbtu. Coal was competitive at that price, so the plants were churning away. Now, with the exploitation of the Eagle Ford Shale and the price of gas has dropped to under $3.00, those coal plant investments are going belly up, because the cannot compete. That is the real problem with the grid, but one should never miss an opportunity to make an ideological attack on clean energy. You dance with the one who brung you to the party, and it's Koch Industries. Let the private market work. Let the private equity folks go bankrupt. It will lower their cost structure and make them more competitive.
Papa Ray
They should ( for the foreseeable future) stop all subsidies, credits for "renewable energy" not only in Texas but everywhere. Then the market can drive the much needed improvements that are not only needed (badly needed) in our Grid in Texas but in almost every other state. It is at a critical point right now.
Someday if given time and effort (but not taxpayer money) wind, solar and other renewable energy might be worth while and cost effective. But until then, we should use our oil/gas resources to their fullest, mindful of pollution but not letting it stop the necessary growth needed for our future.
Harding and expanding of our Grids should be number one for the United States and other countries. The Sun is not our friend in this arena and terrorists will learn (if they have not already) how to bring us to our knees by making our electrical grids fail.
A world without electricity is going to be a Disaster of Biblical proportions.
Papa Ray
hans5162@ix.netcom.com hans
Papa Ray, you raise an interesting point. I'll agree to stop all taxpayer subsidies for renewable energy, when they agree to stop all taxpayer subisidies for the oil and gas industry. If you looked at the amount of the subsidies the fossil fuel industry receives, it dwarfs the wind tax credit. If you really want to let the market work its magic, then let's go whole hog. Since we hate government regulation, let's allow private enforcement to adjudicate the full cost of reliance on fossil fuels. Get rid of tort reform and allow private individuals to sue power companies and petroleum companies for the collateral damage done to private land and consumer health. There is a cost imposed on society from the burning of coal and petroleum, which individuals should be able to shift onto those responsible for that damage. You want the full benefit of private competition, then let's have a truly competitive system. Let's really create a dog eat dog, ruthlessly competitive system, in which consumers have a fighting chance. Then, we can talk about the benefits of competition.