We have used every means available to make you, our customers, aware of the devastating economic burden that would be placed on all of us by the various “cap and trade” proposals that have been considered by our federal legislature.  There are other legislative proposals that, while not receiving the attention of cap and trade, could be nearly as burdensome.

About 29 states have enacted some version of what are known as renewable energy portfolio standards.  Under these state mandates, electric utilities are required to obtain a certain percentage of their total energy mix from renewable sources.  The percentages and the time line for meeting those percentages vary from state to state. Generally, sources which meet the “renewable” definition include solar, wind, biomass, small hydro, geothermal, and fuel cells. 

Thankfully, our legislators in Wyoming have exhibited wisdom and foresight by not adopting any renewable portfolio standards.  But now the U.S. Congress is considering adoption of a nationwide standard, which would certainly increase costs for all states, especially for those without the burden of a renewable standard.   

Proponents of renewable standards attempt to justify these mandates by claiming they will reduce carbon emissions, diversify our energy mix, decrease our dependence on foreign oil, increase our nation security, and create vast new “green” jobs opportunities. I believe all of these claims are somewhat dubious and will address some of them in future Viewpoint columns.

Clearly the cost of generation from renewable sources is more costly than base load coal generation. If electricity generated by wind, for instance, were cost competitive, consumers would use more of it without a federal or state law to mandate its use.  Data from the Energy Information Administration (EIA) show this to be true.  EIA estimates the levelized cost per kilowatt-hour is 7.8 cents for conventional coal generation, 14.9 cents for onshore wind power, 19.1 cents for offshore wind, and 25.7 cents for solar power. The 7.8 cents for conventional coal generation is for new sources.  Some existing coal plants are generating electricity for around 3 cents per kWh.

However, the EIA analysis only takes into consideration the cost of generation.  There are a host of other issues which must be considered in conjunction with wind generation.

I recently attended a Wyoming Legislative Wind Energy Task Force meeting.  The purpose of the meeting was to review eminent domain and other property rights issues as they relate to wind energy development.  The discussion was very informative and brought to light many heretofore unrecognized issues regarding widespread wind energy development.

Wind power is intermittent and unreliable.  Most of the best sites for wind generation are located far from load centers. Thus increased wind power cannot simply be added to the existing transmission grid without transforming the grid in ways that introduce both significant costs and operational inefficiencies.

The enactment of state and/or federal renewable portfolio standards would result in currently unforeseen impacts on our landscape. The erection of wind farms and the transmission lines required to collect and deliver their output will surely impact remote and pristine public lands.  And, while some private land owners will realize a financial benefit, others may have their property rights eroded in ways they do not like. In addition we will all be paying higher electric rates if we are forced to obtain any portion of our power from inherently more expensive sources.

As always, I welcome your comments.