California electricity rates to increase under plan pending before Congress
Washington, DC – With only days remaining until the U.S. House of Representatives casts an historic up-or-down vote on one of the largest tax hikes in the history of Congress, Congresswoman Mary Bono Mack (R-Calif.) has an opportunity to take a second and closer look at this measure, as recent estimates suggest California families could be among the hardest hit by it.
Under this proposal, the federal government would mandate increased use of expensive, unreliable forms of power, which currently represent a mere 2.8 percent of the nation’s overall electricity usage. In total, less efficient renewable electricity accounts for 12.6 percent of California’s power, which would have to increase by 19.4 percent by 2020 to reach this 15 percent mandate.
“Though the Washington politics on cap-and-trade may be complicated,the local consequences of this policy could not be morestraight-forward,” said Thomas J. Pyle, president of the AmericanEnergy Alliance. “For it to work, and work properly, Americans’ energybills must go up – hard, fast, and forever. That means CongresswomanBono Mack has a clear choice to make: side with hard-workingCalifornians and small businesses, or support out-of-the-mainstream,Washington special-interests.
“President Obama has said this legislation will ‘necessarily increase the cost of electricity.’By all accounts, increasing electricity costs in California, whilesmall towns and working-class families continue to suffer, willdevastate family budgets and force businesses to shut their doors.”
Currently, 34 states, including California, enforce so-called“renewable portfolio standards” – Washington-speak forgovernment-enforced mandates that favor less-affordable, less-reliableelectricity. On average, residential electricity rates are 38 percenthigher and industrial rates are 50 percent higher in these states.
“Unfortunately, instead of focusing on expanding American energyproduction, our lawmakers are intent on imposing the largest energy taxin history – yet another in a series of heavy-handed policies thatdictate, rather than let the market determine, the types of energy weneed for our homes and businesses,” said Pyle.
The American Energy and Security Act of 2009, which includesboth a cap-and-trade regime and renewable electricity mandate, does notproduce a single unit of energy and further weakens our nation’soverall energy security. The U.S. House is scheduled to vote on thelegislation the week of June 22.
More on Renewable Electricity Mandates:
· Fact Sheet: Renewable Electricity Mandates, Pay More for Less
· Interactive map: How much of your electricity is generated from politically correct sources?
*Numbers are rounded to the nearest tenth percent.
The American Energy Alliance (AEA) is a not-for-profitorganization that engages in public policy advocacy and debatesurrounding the function, operation, and government regulation ofglobal energy markets. AEA, an affiliate of the Institute for EnergyResearch, works to educate and mobilize citizens around the idea thatfreely-functioning energy markets provide the most efficient andeffective solutions to today’s global energy and environmentalchallenges.
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