In 2010, approximately one in 30 Oregonians had their electricity cut off due to inability to pay. Enrollment in the low-income assistance program has increased significantly in the past few years. Part of this was undoubtedly due to the recession, but mandating the addition of more renewable energy to the grid has and will continue to increase electricity rates. Ever-increasing rates will leave even more Oregonians unable to pay their bills.

In 2007, Oregon legislators passed Senate Bill 838 which established a state Renewable Portfolio Standard (RPS), effectively forcing utility customers to purchase renewable energy. A recent economic analysis by Cascade Policy Institute reveals this bill has significant negative consequences which are just beginning to come to light.

The study finds that because of these mandates the average Oregonian household will pay an additional $1,706 in higher electricity costs; the average commercial business will spend an extra $9,641; and the average industrial business an extra $80,115 over the period of 2015-2025. Overall, the mandate will cost Oregonians nearly $7 billion more than conventional energy sources until 2025.

More expensive energy and higher electricity costs lead to job losses as well. By 2025, the Oregon economy will lose an average of 17,530 jobs.

Legislators need to rethink their push to force renewable energy on citizens before electricity costs spiral out of control, or utilities will leave Oregonians out in the cold.


Todd Wynn is Vice President at Cascade Policy Institute, Oregon’s free market public policy research organization. He was formerly Climate Change and Energy Policy Analyst at Cascade.
 

3 Responses to “Renewable Energy: Leaving Oregonians out in the Cold”

  1. James M. Dixon March 18, 2011 at 11:55 pm #

    Last October I took a trip up the Columbia River to Eastern Oregon (Philippi Canyon) to view the Ice Age Floods Scablands. Near the top of the hill where the John Day River is visible, the surrounding ridges were topped with dozens of wind powered electric generators. A spanking breeze was present, yet out of the two or three dozen generators visible, only three were turning. This is hardly the kind of performance that could justify all the hype for “alternative power,” and the constant badgering messages included with my electric bill to sign up for “Green Power.”

Trackbacks/Pingbacks

  1. Leaving Oregonians Out in the Cold « Civil Society Coalition on Climate Change - March 22, 2011

    [...] the example of renewable portfolio standards. Todd Wynn of the Cascade Policy Institute in Oregon writes: In 2007, Oregon legislators passed Senate Bill 838 which established a state Renewable Portfolio [...]

  2. The Future? Higher Electricity Rates and More Oregonians on Assistance Programs | Cascade Insider - May 17, 2011

    [...] latest publically available data from 2008 reveals that one in 20 Oregonians had their electricity shut off due to inability to pay, and one in 4 ratepayers were past due on their accounts. In the past few [...]

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